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Microsoft history repeats itself: Google faces antitrust probe
Posted by Sharon Pian Chan
The Federal Trade Commission is poised to launch an antitrust investigation into Google. The company's dominance in search has led it down the same path that Microsoft trod many years ago.
The Wall Street Journal reported the FTC's plans, citing anonymous sources. We ran story from the San Jose Mercury News Friday.
Microsoft's 20-year antitrust battle ended in May when the consent decree that came out of a settlement with the U.S. Department of Justice expired. Observers believe the antitrust issues pushed Microsoft Chairman Bill Gates to step down as chief executive, and the loss of Gates, they say, de-fanged the company.
In the San Jose Mercury News story by Mike Swift quotes a lawyer who compares the two companies.
"How close is this to the Microsoft case? Man, I've got to say, it's getting closer every single day," said Gary Reback, a Palo Alto, Calif., antitrust lawyer who headed efforts that ultimately led to the federal antitrust lawsuit against Microsoft in the 1990s.
Microsoft opposed Google's acquisition of travel software maker ITA when the proposed merger faced antitrust review. US regulators approved the merger in April.
Update 10:09 a.m.:
Google confirmed that it has received a subpoena from the FTC and notice that the commission will be reviewing its search and advertising practices. The company confirmed the investigation in a filing with the Securities and Exchange Commission.
Amit Singhal, a Google Fellow, wrote a Friday morning company blog post that it's not clear what the commission is looking for.
"It’s still unclear exactly what the FTC’s concerns are, but we’re clear about where we stand. Since the beginning, we have been guided by the idea that, if we focus on the user, all else will follow."
Singhal went on to say that Google is committed to providing relevant results, labeling ads, being transparent about how its rankings work and that it's not locking people in to its products.
"These are the principles that guide us, and we know they’ll stand up to scrutiny," Singhal wrote.
May 24 - 6:10 PM Report: NBCUniversal in talks to buy back MSNBC.com from Microsoft
May 18 - 3:38 PM ITC says Motorola violates a Microsoft patent on its Android devices
May 17 - 5:36 PM Microsoft Pri0 out of the office
May 17 - 6:00 AM Microsoft poised to reap rewards from Facebook IPO


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