Economic Considerations Raised by the Federal Trade Commission’s Investigation of Google’s Search Practices
Robert Levinson, Michael Salinger, Jan 30, 2015
In January 2013, the Federal Trade Commission closed its nineteen-month antitrust investigation into Google’s search practices. The primary issue in that investigation was Google’s use of Universal Search results. The argument that Google’s display of Universals violated the antitrust laws appeared to rest on a theory of vertical foreclosure. Under the vertical foreclosure theory, Google’s thematic results compete with third-party thematic search sites, and the “proper” role for Google’s general search engine was to act as an honest broker among the alternatives. The FTC’s investigation and its resolution raised interesting antitrust issues, some of which were novel, and some of which were fundamental to sound antitrust enforcement. Among these are several that we consider in this article: (1) What is the nature of the economic relationship between Google and third parties that receive (and perhaps rely on) traffic referred to them by Google’s general search engine?; (2) Is “general search” a relevant antitrust market, and is general search a distinct product or service, inherently separate from thematic search?; and (3) Should innovations by Google that expand the scope of what its general search engine can do—and place it in competition with other websites—be viewed as “monopoly leveraging” or, alternatively, as “innovation competition”?
Links to Full Content
Featured News
T-Mobile’s Acquisition of Ka’ena Corporation Receives FCC Approval
Apr 26, 2024 by
CPI
UK Regulator Announces Two New Senior Executive Appointments
Apr 26, 2024 by
CPI
Paramount Global and Skydance Media Near Merger Deal, Eyeing CEO Change
Apr 26, 2024 by
CPI
BHP Unveils £31bn Mining Megamerger Proposal with Anglo American
Apr 25, 2024 by
nhoch@pymnts.com
ByteDance Prefers Shutdown Over Sale of TikTok Amid US Ban Threats
Apr 25, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI