USDOJ Sniffing Google Antitrust Suit, Hires Ex-Disney Lawyer
Van Cutter Romney was one of several to write with the story that "The Justice department has secretly hired former Walt Disney lawyer Sanford Litvack for a possible antitrust suit against Google. As reported earlier, the Justice Department is investigating the deal between Google and Yahoo which accounts for 80% of online search advertising. The Wall Street Journal writes today that Justice Department lawyers have been deposing witnesses and issuing document subpoenas for weeks — but that doesn't necessarily mean a case will be brought."
And every Tom, Dick and Harry who creates webpages. Oh and Google is competing with Verizon and AT&T... Maybe because Google has so many competitors that the competitors are trying to indirectly litigate.
I'm not quite a Google fanboi, but I can't figure out how Google is stopping others from innovating.
God spoke to me.
1) Google proposes deal with Yahoo.
2) Federal Trade Commission, the government entity charged with regulating business activities vis a vis anti-trust regulations, gives the OK.
3) Google goes through with deal
4) Justice department investigates for anti-trust violations.
Why does this remind me of when the Big Three were getting sued for the type of airbags that the Feds REQUIRED they install, and not having switches to turn them off which they were prohibited from installing by the same regulations?
"As God is my witness, I thought turkeys could fly." A. Carlson
Could it be that other are having trouble competing with Google because everyone else has lost touch with their user base but google? The only reason I use google search is because how fast it loads, their main page isnt bogged down with crap that takes time to load, it just loads. If one of the big three had been smart enough to know that the hard core among us just want efficiency and we are the ones that provide word of mouth then they would be a lot better of. Google doesn't prevent competition, it just does things better then the competition.
-Ours is the wisdom of Solomon, the magic of Merlyn, the fall of Icaris.
They didn't hire him. He's on loan, to return the favor for passing legislation that favors Disney (for reference, see all the latest copyright changes influenced by Disney).
I'm sure I'm missing something here and maybe someone can fill in the blanks. How does Google and Yahoo selling more online ads prevent anyone one else from competing. Just because the 2 companies make a deal to share ad space doesn't prevent anyone else from doing business. What are the unfair practices here?
FTFA:
Yes, and we all know how much that decade-old antitrust suit changed the world...
I get the part that Google is monopolizing the online advertising space. But that is no reason to sue them. It's true that they set a high bar for entry into the market and they will continue to do so as long as customers flock to them.
The only reason for an antitrust suit would be when the company stifles innovation. But if it does customers will automatically move away from them and move to others who have better services. That's simple economics. DOJ doesn't help the process in any way by suing Google.
Help a man when he is in trouble and he will remember you when he is in trouble again.
I have not heard of Google abusing its market position like Microsoft.
"To those who are overly cautious, everything is impossible. "
"The Justice department has SECRETLY hired former Walt Disney lawyer Sanford Litvack for a possible antitrust suit against Google"
I thought the govt. was supposed to be good at keeping secrets...
This was inevitable. Eventually, Google was going to take some steps forward in some area, and somebody was going to panic that it was a "monopolistic" move. Any sufficiently huge company has to deal with that (even Disney had that problem years ago). It will be interesting how it plays out, however. Antitrust suits usually hinge on making sure that the customer is not ripped off. In this case, the customer is not the end-user who surfs the web. The customer is actually the advertiser, since that is where these guys make their money. And the advertisers can still advertise on both Google and Yahoo equally and increase visitor coverage, so it will be hard to prove that the customer has suffered damages.
How about they fix the M$ problem first? How many companies were destroyed before Linux got a foothold back in the late 90's?
It's well-known that Microsoft got off being punished much for monopolistic practices after Bush took office -- the experienced DoJ lawyers were pulled off the case.
So who did MS pay off but Google not get to?
Hail Eris, full of mischief...
E pluribus sanguinem
Google are virtually omnipresent because they are just that good. Nothing and nobody is stopping you or anyone else from trying to compete with them, as seemingly impossible a task as that may be. They don't own a patent on the search engine.
Unlike a certain large OS vendor whose business model revolves around finding new ways to lock customers in, turn open standards into proprietary, patented and licensed rip-offs, and threatening others with lawsuits whenever it feels the need. 235 patents, wasn't it?
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Your article is still pending... Disney and Xenu need to confer...
Some people are only alive because it's against the law for me to hunt them down and kill them.
I don't get it. So, Google and Yahoo! are grabbing 80% of the market. How about the remaining 20%? Someone's making money off that area as well. How is Google a monopoly? Sounds at most a duopoly or most likely a leader, but not a monopoly!
slashdot rocks
It could have been submitted days ago. If I were a Slashdot editor, I guarantee I wouldn't sit here in front of my computer browsing story submissions all day. I'd set it up so I could browse them once a day, and then schedule them to appear throughout the day, while I sit around sipping margaritas.
"I submitted this article hours earlier. Its a total mystery how slashdot editors choose favorites."
Have you considered the possibility that of the "several to write with the story," maybe, just maybe, you were not the first person to submit it? Perhaps Van Cutter Romney submitted it "hours" + 1 earlier.
This Space Intentionally Left Blank
Someone is finally doing something about this horrible monopoly! We can only hope Google is put in their place, just like Microsoft and AT&T.
I normally don't get in on these back slapping commentfests, but this one couldn't be more dead on than a Muslim suicide bomber. Well done.
Yea, Google has a stranglehold on Internet search and therefore is in touch with their user base.
MS on the other hand has a stranglehold on the desktop OS and therefore is an evil monopoly.
Let's face it folks here's the only difference:
* Google's monopoly will hurt businesses wanting to buy web ads.
* Microsoft's monopoly will hurt individuals who use desktop products.
It just depends on whether you are a business or an individual as to which monopoly you'll feel stung by.
google's already major player in roles of storage and dissimenation of public information, news, traffic, maps, projects, images, shopping, financials, calendars.
just give em the government and it'll be entertaining how it turns out. i wonder how a GPL republic government would work...
Google's popularity is 100%consumer driven - IN SPITE of the shady deals Microsoft has be found to engage in to dominate the internet.
Is this right? The DOJ under Clinton-Reno pretty much had the MS antitrust thing sewn up years ago, but as soon as the Bush admin came to power, they changed the top brass at the DOJ and the suit was essentially dropped.
But here it is years later, and the same DOJ under the essentially the same Bush admin wants to go after Google?
Ok, what's up?
and, in spite of over coming MS's user installed base, and Yahoo's popularity when Google started out, and dozens of other search companies.
I don't see why Google's monopolistic position in internet advertising is a bad thing. It's just the internet after all. I don't see how it's the government's business what people do with their money on the internet, and it's especially not the government's business to make the internet "fair." Don't like how it works on the internet? Log the fuck off and do something else worthwhile.
Note that Sanford ("Sandy") Litvack, now 72 years old, was an Assistant Attorney General for the Carter administration, where he headed the DoJ Antitrust Division. His first job after law school was as a trial attorney for the DoJ Antitrust Division in the Eisenhower administration. This will be his second return from private practice to assist the DoJ.
Bill Clinton's administration sues Microsoft for antitrust and wins. George Bush gets into office and pretty much slaps Microsoft on the wrist, calling the law suit a travesty of justice.
Microsoft gets all upset with Google for being #1 in the Internet search business and making all this money. So much so that they try a hostile takeover of Yahoo and lose.
So, now, all of the sudden, federal trust busters are snooping around trying to crush Microsoft's biggest competition.
Stay tuned next week when trust busters start looking at the iPod monopoly to see if Apple needs a swift kick in the crotch.
The Bush Administration; bought, sold and paid for by Redmond, Washington.
You think it's any coincidence that Bill Gates got to waltz through secret service and shake George Bush's hand during the Olympics....
Any sufficiently huge company has to deal with that
Try this one on...
Any sufficiently huge company that isn't actively lobbying the corridors of power in DC has to deal with that.
It is very well documented that it's how Microsoft got hammered by the DOJ in the first place. Now, there is practically no enforcement of their conviction and Microsoft is very active in D.C. Coincidence? I think not.
They're totally just jealous of Google actually being less than evil and still being successful.
"Most people, I think, don't even know what a rootkit is, so why should they care about it?"
Drop the case like they did with Microsoft? Ohh, I bet Google are real scared.
If the DOJ want to start taking on anti-trust cases, they have to treat all companies equally and that means splitting up Microsoft. Google isn't abusing its market position to expand into other markets, expanding into other markets feeds back directly into its core business. This is exactly the opposite of Microsofts past and ongoing abuses (eg: how the Windows desktop monopoly and DirectX was used as a base for sideways move into the console market).
It's no secret that Microsoft are behind Google's antitrust rumblings; the outright audacity of these slimy fuckers is astounding...
is how I can't get on the google party plane
Take the cheese to sickbay, the doctor should see it as soon as possible - B'Elanna Torres, "Learning Curve"
Since when does "providing customer with a good product" equate with a monopoly?
Does that mean that if I am TOO successful in the creation and marketing of my product, I have opened myself up to reprimand/repercussions from the government? Someone help me out here. I simply don't get it.
If I make something far superior to my nearest competitor, and the entire customer base switches to my product, I've done something wrong?
Can someone please explain why this is even an issue for Google?
I'm going to block ads no matter where they come from, as can any "consumer". All of a sudden the DoJ is concerned about anti-trust violations. This is bad because it means, within the halls of Justice, they see online advertising as "a big deal" while most online denizens detest all forms of online advertising. OK, some of us allow Google's unobtrusive text-only ads through because they're not too annoying, but if that should change then they're blocked too.
So the "big business" of online ads - that everyone hates - is important to the Justice department. Meanwhile, the MIAA and RIAA are allowed to continue bribing the Congress and being given the right to author their own laws, which are then backed up with the full weight of the US Government behind them.
Both major parties are fucked up, if you ask me. Really, really fucked up. No matter who wins the Presidency nothing much is going to change.
Some really wierd things are going to happen...
... in the USA when the money runs dry for big government will have to turn on those who have it (corporations) for a change.
... the EU went on to actually pursue and reform Microsoft.
The original Microsoft anti-trust was brought by a Democratic President who got distracted by Monica-Gate and eager to please all in the aftermath
Should our government pursue cases on behalf of other corporations envious of other corporations?
Well, the lawyers are just following the money.
If you want to start a business today, you have to have some idea why Google won't just Beta you into the ground.
Nope, that's only if you want other peoples' money.
Google thus prevents innovation through the *possibility* of actions it might not ever take, or might take with only good intentions.
I'll grant you that there's a risk there, but there's also a reward. Google tends to buy products that mesh well with theirs when they want to enter a market. None of it is for the risk-adverse.
My God, it's Full of Source!
OUTSIDE_IP=$(dig +short my.ip @outsideip.net)
come to you with Chrome preinstalled?
Google became the dominant search engine for a couple of reasons - not only is it really fast and uncluttered, compared to some of its early competitors (remember Hotbot?), but PageRank did a good job of guessing what pages would be the most relevant and most interesting and displaying them first, and nobody's really caught up with them. On the other hand, they've still only got a bit more than 50% of the market - their two main competitors are staying in business.
In advertising, which is how Google makes most of their money, Google ads are uncluttered and fast, so they're not as annoying as other ads, making web site authors more willing to carry them, and apparently advertisers think Google does a good enough job of targeting ads to readers that they're more effective than their competitors or have a better price per result or something.
And unlike Microsoft, where the tight integration between the OS, device drivers, the mail system, the calendar, and Office makes it difficult to leave once you're addicted, it's easy for anybody to use another search engine instead of Google, or for an advertiser to use a different ad agency, and the reason Google stays on top is because they invest enough development money to keep their quality high.
Bill Stewart
New Fast-Compression-only CPR http://preview.tinyurl.com/dy575ks
Call it like it is: the other companies (ESPECIALLY microsoft, if they are behind instigating the DOJ investigation AFTER Google/Yahoo! have pretty much signed their deal at ms' loss) are whining piss-ant performers. They cannot compete effectively at the insane (too low or too high, or improperly-thought-out) profit margins, so they kvetch to the DOJ to try to dismantle Google. If Google is to dismantled by regulatory agencies, then msoft should be first in line.
As for Google "just loads", however, it's not always so: I have enough firewall and blocking going on the effectively make Google take 5 seconds or longer to load. Gmail processes sometimes fail and hang up chatting and other features. But at least i can live with that because it's of my own doing.
Search engine companies trying to make a living off of ads probably will fail. I suspect (not that this is not the case, and not that this has been discussed) that Google is simply making reams of money by selling off the ad information impressions under a very profitable model/scheme that others have difficulty emulating. As for microsoft, if they weren't so damned busy trying to appropriate/misappropriate the business dreams of others, and if they weren't so jealous of and vengeful about others' novel approaches to things and end up making ms look stupid or underperforming then ms might sober up (yet again, like a lumbering, staggering, slurring drunkard of the software industry) more often (instead of being punch-drunk on their own "achievements") then they might actually garner more respect rather than command/hijacking it.
Google succeeds because they are Google. They have a different attitude. That ms succeeds is because they, relative to Google and, lets' not forget others who were DESTROYED by msoft, have little compunction about their acts. They use their money to clobber, out-market, and out-litigate, not innovate. Google (having lots of cash), and survivors and smaller companies (with less cash), meanwhile, innovate or adapt at the very least, out of fear of not being here tomorrow. But, ms seems to operate as if they have universal appeal and a right to exist without question. They need to re-think that attitude.
Previously: "Linux... Toward the Sunrise..." Now: "Linux... Toward the-- No, now, part of Every Sunrise"
What if the DOJ is seeking to harm Google because it wouldn't fully comply with handing over search results to the U.S. Gov't?
... just the ABUSE of them. Think of all the niche markets where somebody has a monopoly on it. If there is evidence of Google abusing their "monopoly" in search and advertising to get a stranglehold on other markets, then having the DOJ look into it is a good thing. So they've got 80% of the online advertising market with the deal with Yahoo; good for them. Are they abusing it somehow? Artificially inflating advertising prices? Any examples?
When you think of anti-competitive and monopoly, only one name comes to mind: Microsoft.
I'm sure this deal between Google and Yahoo puts M$'s hostile take over of Yahoo even further out of reach.
"Suppose you were an idiot...and suppose you were a member of Congress...but I repeat myself." Mark Twain
If you want to profit from the code, you must pay back in kind.
It's why so many companies and their shills say we should be using the "more free" BSD.
Is the reply really off topic, or do the moderators just disagree with the inference?
If there is any truth to this then it is a sad sad day. This is not the kind of situation those laws were enacted for. Didn't the Government learn anything from breaking up AT&T?
I suggest we file an Anti-Trust suit against the Federal Government and insist on breaking it up into 50 different Sovereign States with their own Gover.....
ed duval the very last person
I agree with most here that Google has not really done anything to make them not trustworthy, especially when compared to MS. And I appreciate the fact that Google re-invests what they make from advertising into some of the best free services online, and that some of these are even open-source.
However, one area that does concern me greatly is the concentration of all the user and advertiser data in one company. Maybe a break up wouldn't be a bad idea from that point of view. Also, having Google control 80% of the market is a little worrisome, with size and power comes corruption.
For example, you could have an advertising company and a services company. The services (search, gmail, maps, etc) could get paid by the advertising company - but would accept ads from other companies as well.
It is NO co-incidence that Microsoft is one of hte top corporate donors to the Republican party. They scratch each others backs regularly.
I am absolutely not a fan of MS, but you must know something that others do not.
I prefer the "u" in honour as it seems to be missing these days.
From the summary:
The Justice department has secretly hired
For all of our sakes let's hope the Justice Department doesn't know Slashdot is posting their secrets.
This sounds like a gang bang orchestrated by wannabe competitors who've rested on their laurels for too long. Much like the RIAA/MPAA intent on controlling the tubes.
I cant help but think this is a job done for hire by Microsoft. Why on earth would the DOJ want to attack Google for their deal with Yahoo? It was a helping hand to let them survive without Microsoft gobbling them up and spitting the rotten corpse to the wayside. If any company should be under DOJ scrutiny it would be Microsoft for using their ill gotten monopoly to break into the search market.
This really reeks of backroom deals. I thought capitalism was about free markets and stuff but obviously its just about who knows who and whos palms you greese.
HTTP/1.1 400
Is that like an evil wannabe? Are you talking about Google or Dr Horrible?
When Google started 10 years ago, it was yahoo and alta vista. The first was known for their classification, while alta vista was known for speed as well as handling more pages.
I prefer the "u" in honour as it seems to be missing these days.
Follow the money trail, and you will eventually find out who is behind all this. I'm willing to bet that no more than 48 hours will go by before something is posted to Groklaw revealing how Microsoft is somehow bankrolling this little expedition.
Tired of FB/Google censorship? Visit UNCENSORED!
For being someone else in this thread to spot the difference between popularity and monopoly.
Ta muchly.
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They are parasites whose only mission is to freeload and steal form the brilliant and ambitious. They are parasites, providing for the mobs that empower them, leeches they are. Death to them all.
"If you are a dreamer, a wisher, a liar, A hope-er, a pray-er, a magic bean buyer
A Disney lawyer? Why didn't they hire Mickey Mouse?
McCain/Palin '08. Now THAT's hope and change!
Well, last time I read an analysis of the surrealistic attempt by MS to buy Yahoo, it apparently involved a patent actually. Some small company had come up with a ludicrious blanket patent on, basically, AdWords. If you automatically match keywords to serve an ad, congrats you infringe on it. Yahoo bought them. Yahoo apparently licensed it to Google, but refuses to license it to MS for any sum. So basically it's in a position to block anyone it wants to from entering the context-matched ads segment, and does just that.
So before we all go orgasmic about "OMG google is soo smart that they monopolized the context-matched ad space, and MS is so dumb that it can't even do that except in a few asian countries"... well, it's because basically MS is kept from entering that maket at all.
Anyway, that shitload of money offered for buying Yahoo, were apparently all about that patent. And Yang & Co would rather lose money for its shareholders, _and_ hand in the goose that lays golden eggs to Google, than let MS compete there. They practically offered to bow down and give Google their share of that market space, then let MS in at all.
Now I don't have any particular love for MS, nor any particular hatred for Google, but, seriously, isn't this exactly what the anti-trust laws were supposed to prevent? What I see there is a case of #1 and #2 in a market, colluding to keep #3 out of it. And everyone else, for that matter.
_If_ we decided that it's the ultimate evil to artificially raise trade barriers just to keep competitors out, if you're MS... shouldn't the same apply when Yahoo and Google do it? I mean, seriously, what's the difference?
A polar bear is a cartesian bear after a coordinate transform.
.............changed the world?
(Must have died while he was writing it...)
You all have Oo.o and Firefox, so get World Wind.
Not so weird. The Feds regularly (and I would assume illegally) punish uncoooperative corporations. Remember what happened to Qwest when it refused to be a party to illegal wiretapping.
The higher the technology, the sharper that two-edged sword.
My understanding of antitrust law is that they are to prevent companies with monopolies from using their monopoly power to hurt competition in other lines. That is, to use their monopoly dominance in one field to bludgeon their competitors in another field. For example, using one's dominance in the operating system market to take over the web browser market.
I'm not sure I see how google can do that based on this yahoo deal. I can see how it gives them a huge, dominating presence in the advertising market, but I don't see how they are abusing that dominance to hurt competition. They're simply offering the best deal in town to advertisers, and advertisers are generally taking it. Who's being harmed?
That site doesn't count the "soft money", the individual candidates, the "favors", etc.
VLC FOR MAC IS DYING! IF YOU DEVELOP, PLEASE SAVE IT!!
Rand was wrong about a lot of things
I hear people saying that a lot, but I've never seen an actual point or list of things wrong with her theory. Care to list them.. I'm genuinely interested in anything that is wrong with her philosophy.
Yea, I don't understand it myself. Whenever Ayn Rand is mentioned someone has to say she was wrong, but they won't say why. Maybe it comes from the movie "Dirty Dancing", a waiter there is carrying a copy of "The Fountainhead" I think and he says something along the lines that some people count more than others. However neither that book nor any other's of Rand says that. I love the movie but hate that scene.
Then again maybe it's because of Objectivism. My sister loved Rand until she found out about Objectivism. Then as a Christian she changed her mind about Rand.
Falcon
Should there be a Law?
It seems that's what you are doing yourself. A monopoly is a lack of competition.
Microsoft has the majority of the market share of the desktop world. But that is not what makes them a monopoly.
It does make them a monopoly. However being a monopoly is not illegal.
using their position of dominance to suffocate other competitors, such as forcing computer manufacturers to install only Microsoft Office products under the threat that if they don't comply that Microsoft will yank their Windows licenses.
Now that is what is illegal. Simply being a monopoly is not illegal but using the monopoly to squeeze out competition in another area is illegal. The original lawsuit again Microsoft wasn't because they were a monopoly, it was because they used the fact they were a monopoly to force computer manufacturers to install other Microsoft products on PCs instead of competitors' products, IE instead of Netscape.
Falcon
Should there be a Law?
Google is getting in everybody's space
While Google's there when I want it, they aren't in my space.
Google's products are not generally better, (often flakey or worse (consider google docs and gmail - so what? the only advantage they offer is that they are free
Unless your employer, or you for that matter, demand you use Google's apps you don't have to. Even if you want free software, a lot of the software on my computer is open source, I have none of Google's software on it. I don't even use gmail.
They have already destroyed the search market because only crazy people would start up a search company and go up against them.
Google has gained dominance in searches because it offers better searches than most other search engines. However the new SE Cuil looks pretty good too. I haven't really used it yet but I also use About.com, Alta Vista, Teoma, oops Ask.com, and Open Directory Project for searches.
They are busily destroying most other markets too.
And what markets are these?
Falcon
Should there be a Law?
If no competitor comes into the game to challenge the #1 player, then the consumers lose out because the player can just sit down and do nothing and the consumers will have no choice but to deal with it.
And when Google returns bad results, people can switch to other providers. Whether that's in searches or in advertizing. Google got big by providing a better service and they shouldn't be punished for that. They should only be punished if they use their strengths to try to dominate another business sector. And I haven't heard about any cases where they were. Besides Google I use other search engines as well. And if I ran a business, I hope to start one in photography, I could use other ad agencies. If I wanted to place ads on Facebook I'd have to buy ads from Microsoft. Yahoo! bought the ad agency Overture, which before Google came along was a big online ad business.
Falcon
Should there be a Law?
Well, I guess if you want to get that picky about the semantics, sure. But I was focusing mainly on the fact that Google does not appear to be employing anti-competitive practices, and that I don't see how the Google/Yahoo deal would either, and I don't see what the DOJ can do about it. My other point was that the DOJ's reaction is not surprising, considering how big and influential Google is (and influential does not mean anti-competitive).
Everyone had to see this coming. If you didn't keep writing code and stay out of the business part. The Yahoo deal (or more like the deal to keep Microsoft out of Yahoo) gives Google even more control over the online advertising arena. The people who stand to lose the most from Google's monopoly is advertising agencies. Not M$. How can I as an advertising agency compete with an entity on the web that has such control over the segment? The interesting thing here is going to be how Google handles the suit. If they are found guilty, they will face record fines. M$ was (and still is) sitting on a tremendous amount of cash. Google isn't. They just have stock value. The DOF doesn't take that for payment.
This is asinine. The DOJ should be going after the real problem... the f*^k!ng lawyers the 'parasites' at the top of the food chain... but they won't b/c they don't like the taste of their own blood. see http://evilesq.blogspot.com/
Well, I guess if you want to get that picky about the semantics, sure.
It's not a matter of pickiness, if people don't use the same definition then there's confusion.
Falcon
Should there be a Law?
Bush government's people admitted to screening FIFTY candidates for top positions in DOJ for their political viewpoints, and choosing the ones they found closer to their own.
basically doj is corrupted to the point of being a pile of shit by republican neocons. hence, being microsoft's bitch.