FTC's Internal Memo On Google Teaches Companies a Terrible Lesson
schwit1 writes FTC staffers spent enormous time pouring through Google's business practices and documents as well as interviewing executives and rivals. They came to the conclusion that Google was acting in anti-competitive ways, such as restricting advertisers from working with rival search engines. But commissioners balked at the prospect of a lengthy and protracted legal fight. For a big company, that process may have been enlightening. Agency staffers might find evidence of anti-competitive behavior. But that doesn't mean the firm will face the music in the end. Previous attempts to go after big companies — such as the Justice Department's long-running antitrust case against Microsoft in the 1990s — loomed large in regulators' minds at the time of the Google probe, according to a former official who worked at the agency then. "Even if we were in the right and could win," said the former official, "it could take a lot of resources away from other enforcement."
Ah, the efficient use of government resources trumps justice. Must be a first!
"We know they committed fraud and lied to investors, but really, they're just too big to do anything about so here, here's $700 billion of taxpayer money so you can pay your bonuses."
One step closer to fascism.
We will bankrupt ourselves in the vain search for absolute security. -- Dwight D. Eisenhower
The government should not be constrained by market assumptions, such as that resources are limited because of efficient allocation. The government operates on principles, such as unalienable rights, that markets do not value.
This is a universal truism that fits to all law enforcement actions. If a crime is too common to police universally, the law will be applied selectively. If you could convince every defendant of a specific crime to fight the charge in court, that would influence the prosecution of that crime. While every prosecutor would pursue crimes that have an obvious harm to society, prosecution of 'victim-less' crimes would drop off in the face of consistent & vigorous defense. The 'law & order' works because most defendants don't aggressively defend themselves in court.
I do not think that crash can be averted. Too many people with power do not have any common sense. Eventually, that ends a culture. History is full of examples.
Most ACs are not even worth the keystrokes to insult them. Be generically insulted by this and ignored otherwise.
Why are corporations now free to act above the law?
Microsoft's illegal monopoly was spared a break-up by the dept. of Justice's 180 degree turn to a settlement -- that happened right after the Bush presidency started. Read about the case here: http://en.wikipedia.org/wiki/United_States_v._Microsoft_Corp.#Judgment
Google is becoming impossible to avoid. I know because I try. You can still easily block Google ads on most sites, except the really big ones like eBay. You can use other search engines. But that's about it. Far too many web sites rely on *.googleapis.com, and not just for maps. Far too many people use GMail addresses or forward their mail to GMail. It doesn't matter that I don't use it when my emails end up in their system anyway. Some universities have Google operate their mandatory student email addresses. Far too many people use Chrome. Far too many people store all my communication with them, my address, my birthday and anything else they know about me on their Android phones with Google services, diligently backed up to Google's servers. Far too many people think that being critical of Google is unpatriotic.
Trickle down economics carefully explained
I've fallen off your lawn, and I can't get up.
What "other enforcement"? o.k., presumably the FTC is doing other things with their time than just antitrust. But if you're talking about getting the largest enforcement effect for your tax dollar, wouldn't going after a huge company be a good buy? 1) big company = big effect (in $) on the market. 2) big company = big news = littler companies telling themselves, "Well, if google can't get away with it, than neither can we."
I'd be interested to see the actual numbers behind this comment. It smells to me like not just a case of maximum efficiency, but rather a total imbalance in the numbers. Either google is so huge that they can outspend the U.S. Government - in which case, um, antitrust? Or alternatively, it's code for, "We're stretched so thin that we genuinely can't do our job."
But, hey - limited government, right? Thank God we don't have fascist socialist muslim regulators preventing Google from coming up with yet another half-baked product that they abandon as soon as someone finds it useful.
After the banks and car companies which are "too big to fail", we've got Google/etc which are "too big to sue".
U.S.A., land of the free*
* if you have enough money
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Yes the federal employee will be paid win or lose. But the goal is for the federal employee to generate revenue, to bring in money. Their time is "better spent" going after some mom-and-pop shop that can't afford to defend themselves and will just pay the fine.
Wrong, it's the governments (of the world actually) that do not value unalienable rights. That is the only reason USA used to be known as unique, it had those rights built into the Constitution and then eventually as those rights allowed the markets to create the wealthiest economy in the world in 19th century, the collectivists saw that as an opportunity to steal and pushed for destruction of what made USA unique - protecting those rights.
Markets value what individuals value on voluntary basis and individuals on voluntary basis making individual choices do value their own freedom to possess and operate private property. That's the most important right that governments of the world violate every minute of every day.
AFAIC it is absolutely Google's business and nobody else's how they provide results to the search queries sent to their servers. Governments involving themselves into that process is destruction of the unalienable rights, destruction of private property rights, just like all business regulations, all income and wealth related taxes, pretty much everything governments do every moment of every day.
You can't handle the truth.
One step closer to fascism.
I realize it is currently trendy to believe that fascism is somehow related to corporate control but it is not. Fascism is an odd combination of far right *and* far left ideas. With respect to industry its actually socialistic. Fascism promotes control of industry by syndicates of workers *not* control by corporations.
That's not a "market assumption", it's plain old reality: resources are finite, so you need priorities. If a cop pulls someone over for speeding, then sees an armed robbery in progress, or a paramedic is treating someone's sprained ankle then a bystander has a heart attack, do you want them to stick to what they were doing and reject the notion of priorities as being a "market assumption"? I'd rather they focus their efforts on the higher priority, because that gives the best outcomes.
In this case, the FTC had more pressing enforcement jobs, like telemarketing scams, the fight with cellphone companies over ripoff premium services ... they felt putting their resources there made more sense than fighting Google over the order of search results, and I'm not at all sure they were wrong about that.
By coincidence, I was discussing law enforcement priorities at work on Friday (we teach computer forensics for law enforcement, among other things); unlike the world of CSI, real law enforcement doesn't go spending days testing out an obscure theory, or digging into every possible detail of each case: they do enough work on a case to pass it to the next stage, then get on with the next case. No "market" - there just aren't an unlimited number of hours in each forensic caseworker's day.
None of the linked articles state any charge of breaking the law. Looks like regulators have done an in-depth investigation and found no evidence and have used the media to cover their ass. All we see are accusations that their shopping search engine used to (or may had have) rank results that they participated in higher, and they had captive agreements with business partners. But where are the specific charges and evidence?
The links states " Google was acting in anti-competitive ways". Leads one to believe that that is not the current situation. With new technology (wonder why we have such long beta services) errors will be made, it's the companies responsibility to create the highest RIO it can. Specifically speaking, if I run a shopping service wouldn't I want to present the most profitable product first? If I am not participating how will I assure future survival and with a publicly traded company, how does this protect the investor?
I don't buy excuse that they are too scared to litigate or prosecute a violation of law. If it's true, the regulatory agency needs to be replaced, isn't their primary function to uphold the law?
Recent media coverage seems like, "Hey boss we took the whole fleet fishing for the past few months, spent a bunch of money and came back with an empty hull". The recent media coverage seems like smear to me.
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The result of the Republican efforts to create a government that "Can be drowned in a teacup" has resulted in government agencies that can in fact be drowned by insufficient resources.
This portion of the gov't does not work on a market model, it works on a revenue generation model. What generates more revenue, having staff go after mega corporations that can afford to defend themselves or much smaller businesses that can not?
So many problem in business and government exist because the incentives/rewards are screwed up. In business school there is a recurring lesson that shows up in many varied topics. You don't get what you ask for. You don't get what everyone agrees is right. You get what you reward. So if you reward a gov't bureaucrat based on win/loss ratio and/or fines generated you will not get justice, you will get wins and fines.
That gets dicey, from everything to perpetual war (thank god the last depression reeled in our Middle East adventures) to reexamining drug laws after 40 years of paying for prisons for the drug war. If it weren't for market assumptions, that madness might have never ended.
Besides, this is the same lie that was told regarding the lack of prosecution for the banking scandals, while accepting million dollar fines for billion dollar frauds, yet there is absolutely no problem in finding the 2.7 million per prisoner to keep Guantanamo open. It's handing waving away the problem, as that is much more media friendly than a simple fuck you, we'll do what we want.
A side effect of following up and taking an offending company to court just might be that other companies might clean up their act lest they suffer the same fate. ``Sternly-worded'' letters haven't done squat to end anti-competitive practices. The fines, though, have helped to make some money for the government. Not like that does anything to the groups who've been screwed by the anti-competitive practices. All they get is a warm and fuzzy feeling that some justice has been done. At least until a future Justice Deptartment decides to look the other way again.
CUR ALLOC 20195.....5804M
with the far right in power at the moment and no credible left wing in America it's pretty much a waste of time/effort to go after a big corp. The right is openly against anti-trust regulation (among other forms of regulation), and if all else fails they'll just cut the agency's funding until enforcement stops. It's a side effect of our screwed up political system. Gerrymandering plus our Senate makes it cheap and easy to put a little pressure in the right place and completely control our politics. That wasn't by accident either. It was designed that way because wealthy land owners were afraid of the plebes voting themselves land & food.
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No excuse, it's not even pronounced the same.
Confucius say, "Find worm in apple - bad. Find half a worm - worse."
you'd never here about it on google searches :)
Preferably a dictionary so you can spell "poring" correctly...
"Wait. Something's happening. It's opening up! My God, it's full of apricots!"
This situation is an example of an economy that has never had a base. It is also proof of a system that has been corrupted. The congress will never pass laws that would correct the problem in that one way or another the congressmen are on the take. For example we could pass a law that bans complex contracts. To enforce that law we simply put a rule into play that if challenged as being a complex contract and the challenge is upheld the complaining party must always win a complete recovery plus legal fees. We can also continue to tax companies that try to offshore divisions of their business. For example if GM wants to make all car seats in Mexico we can add an import tax and also fine them if they do not pay American minimum wages. Further we should allow only individuals to contribute to political campaigns and not corporations and we should cap individual contributions at $100.. Many things could be done to have a rational and just society but they will not be done due to capitalism corrupting the entire political system.