Preview

What Is Google's Antitrust Investigation

Good Essays
Open Document
Open Document
534 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
What Is Google's Antitrust Investigation
Google’s Antitrust Investigation
Laura Rogers

Google’s Antitrust Investigation
Recently, Google, Inc. was under investigation for suspicion of violating U.S. Antitrust Laws. The investigation by the Federal Trade Commission (FTC) consisted of evaluating the company’s business practices related to patents on electronic devices and online search advertising (The Computer & Internet Lawyer, 2013). Google had acquired patents on applications from Motorola Mobility (MMI). These patents are necessary to ensure wireless connections and Internet activity for popular hand-held electronic or game consoles.
The Allegations The success of Google in the market is being scrutinized about legitimate business practices. The use of internet search engines, like Google, do not cost consumers to use the service. Pike reports that two-thirds of the U.S. population use Google
…show more content…

The Sherman Act of 1890 prohibited business monopolies and price fixing (p.375). Later in 1914, The Clayton Act elaborated more on the Sherman Act. This act outlaws price discrimination, prohibition of tying contracts, prohibits the purchase of stocks of competitors, and prohibits the formation of interlocking directorates (p.376). As Pike reports, antitrust laws are “to protect consumers by ensuring that market choice remain available” (2011). Has Google violated these laws? Dominating a market does not necessarily equal a monopoly. While there are other companies in the market, such as Bing and Yahoo!, Google seems to be the most popular. What makes a monopoly illegal is when it was created through unfair behavior with the “power to control prices and exclude competition” (Pike, 2011). If the allegations of having control over Google products with the android market prove true, then Google would be guilty of The Clayton

You May Also Find These Documents Helpful

  • Satisfactory Essays

    egt1 task3

    • 726 Words
    • 3 Pages

    The Sherman Act was created in 1890 had two major provisions which was to prohibit conspiracies to restrain trade and also to outlaw monopolization. In 1914 the Clayton Act was passed to expand off of the Sherman Act. The Clayton Act strengthened the Sherman Act in several ways: price discrimination, typing contracts, acquisition, and interlocking directorates. In 1914, the Federal Trade Commission Act (FTC) was created to enforce antitrust laws and the Clayton Act in particular. The FTC investigates unfair competitive practices and when appropriate issues cease-and desist orders. In 1950 the Celler-Kefauver Act was created to close the loophole the was left available from the Clayton Act’s Section 7. This clause was put in place to stop a firm from acquiring stocks in a competitive firm in order to merge. The Celler-Kefauver Act closed that loophole in order to prevent any firm from reducing the competition. (McConnell 375)…

    • 726 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Tm583 Week 6

    • 311 Words
    • 1 Page

    Google’s Motivation to bid into the wireless marketplace through the use of the 700MHz Spectrum Auction was the opportunity to develop possibly a 50 state network “The FCC is auctioning 1,099 wireless licenses in the 700 MHz band, but the most attractive spectrum for many bidders is the “C-block” of 12 regional licenses that may be combined to create a 50-state network.” (Reiter, 2008) This new product development would allow Google to become a cellular network operator. This market includes firms such as AT&T and Verizon, Google would not only compete with these firms but also would have had the opportunity to network with other entities to develop some innovative new products.…

    • 311 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Egt1 Task 3

    • 729 Words
    • 3 Pages

    With the Sherman Act being somewhat vague the Clayton Act of 1914 sought to further empower the Sherman Act by banning price discrimination, prohibiting tying contracts, interlocking directories and acquisitions that lessen competition.…

    • 729 Words
    • 3 Pages
    Good Essays
  • Better Essays

    BUSN-115 Week 3 Assignment

    • 1012 Words
    • 5 Pages

    The first antitrust law, the Sherman Act, was passed in 1890 and together with a pair of laws passed in 1914, the Federal Trade Commission Act and the Clayton Act, forms the core antitrust laws still in effect today. The Sherman Act outlaws monopolization, attempted monopolization, or conspiracy or combination to monopolize, as well as, restraint on trade. It was ruled by the Supreme Court that not all restraint on trade is outlawed, only unreasonable restraint on trade. Examples of this would be price fixing or the rigging of bids.…

    • 1012 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Google vs. Jarg

    • 774 Words
    • 4 Pages

    Google has found itself in a pickle. The giant internet search engine has been sued for using patented technology. The search technology Google uses was patented back in 1997 by Jarg, Corp. This was one year before Google became incorporated. Jarg was created by Michael Belanger and Dr. Kenneth Baclawski. Baclawski, an assistant professor of computer sciences at Northeastern University, began work on the patented technology in 1994. He later patented the technology under U.S. Patent Number 5,694,593. Belanger claims the company has been aware of the copyright infringement for some time now. Jarg had put off filing the law suit because they had no legal representation and had not been able to find the resources to fund one . Now that legal representation has been found, Northeastern University has joined the lawsuit and Vinson & Elkins, the law firm taking the case, has agreed to do so on a contingency basis, meaning Vinson & Elkins will not receive any payment for their services unless Jarg wins the lawsuit. Vinson & Elkins will provide lawyers to fight the case. They will also be assisted by local counsel where the lawsuit was filed. Though Google was incorporated in 1998, Belanger said he and Baclawski had no idea the company might be infringing the patent, until about 2 1/2 years ago. A representative of a Boston-area law firm told Belanger of seeing a presentation by Google that described the company's Web search technology. The database search technology described in the presentation resembled Northeastern's patented technology.…

    • 774 Words
    • 4 Pages
    Good Essays
  • Satisfactory Essays

    The Clayton Antitrust Act, It was passed in 1914, proscribes certain additional activities that had been discovered to fall outside the scope of the Sherman Antitrust Act. For example, the Clayton Act added certain practices to the list of impermissible activities: a. Price discrimination between different purchasers, if such discrimination tends to create a monopoly b. Exclusive dealing agreements c. Tying arrangements d. Mergers and acquisitions that substantially reduce market competition. EUROPEN UNION COMPETITON LAW: Article 82 of the EU competiton law also deals with the aspects of abuse of dominant position and predatory pricing.it states that “any abuse by one or more undertakings of a dominant position within the common market or in…

    • 259 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    In order to stop the establishment of monopolies, the Sherman Antitrust law was passed in 1890 by Congress. The Supreme Court made the decision that contracts would be illegal if they formed an “unreasonable restraint of trade.” The Sherman Antitrust law “ provides that no person shall monopolize, attempt to monopolize or conspire with another to monopolize interstate or foreign trade or commerce,…

    • 469 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Clayton Act of 1914, sought nothing but to simply strengthen the Sherman Act of 1890. This act, however, forbade corporations from receiving stock of others if doing so created monopolies; If an company broke the law, its officials could be tried and…

    • 693 Words
    • 3 Pages
    Good Essays
  • Good Essays

    The Clayton Antitrust Act of 1914, amended by the Robinson-Patman Act of 1936, prohibits discrimination among customers through pricing and disallows mergers, acquisitions or takeovers of one firm by another if the effect will "substantially lessen competition.…

    • 640 Words
    • 3 Pages
    Good Essays
  • Good Essays

    There are 4 main pieces of legislation that are collectively known as the Anti-trust laws. They are the Sherman Antitrust Act, The Federal Trade commission Act, The Clayton Antitrust Act and the Celler-Kefauver Act. The Sherman Antitrust Act is legislation enacted to protect Americans against monopolies. It makes it illegal to make contracts or conspire to restrict trade or commerce. It also outlaws monopolies. The Federal Trade Commission Act established the Federal Trade Commission and set up how it would be run, with a group of 5 people that did not follow party lines that would be chosen for 7 years terms and would make sure no antitrust laws were being broken. The Clayton Antitrust Law closed a lot of the loopholes that the…

    • 840 Words
    • 4 Pages
    Good Essays
  • Good Essays

    The antitrust act hasn’t changed since it has been created, however the advancement of technology has made it difficult to establish which company would fall under the antitrust act. Older industries are easier to deal with because they are most likely to have a line of cases. Railroads industries for example, have been around for a long time now, which means there has been judges deciding things about it for more than a century. The problem are the technology companies, those are very contemporary making it more difficult for economists and lawyers to decide what is going against the antitrust laws and what isn’t. Furthermore, the advancement of technology has drastically increase deals between different countries. Considering this, before a deal gets approved, it has go through all the antitrust acts from all the countries involved in the deal. A very challenging and long lasting process. Antitrust acts have been around for more than a century, however it has been going through some changes to keep up with the advancements of…

    • 172 Words
    • 1 Page
    Good Essays
  • Better Essays

    In 1994, Microsoft Corporation was sued by the Department of Justice on behalf of the United States for violating §2 of the Sherman Act “…by engaging in monopolization through a series of exclusionary and anticompetitive acts designed to maintain its monopoly power” (Mallor, Barnes, Bowers, & Langvardt, 2010, p. 1275, para 3). More specifically, the company was charged with, among other things, violating the Act by 1) attempting to monopolize the Web browser market, 2) tying its Internet Explorer (IE) browser application to its Windows operating system (OS), and 3) “unlawfully maintaining a monopoly in the operating system market through anticompetitive terms in its licensing and software developer agreements” (United States v Microsoft, 2001). Although some of the Supreme Court’s decision was reversed by the Court of Appeals, the prior decisions regarding these three primary claims were affirmed – and rightly so.…

    • 1182 Words
    • 5 Pages
    Better Essays
  • Good Essays

    Although antitrust laws are good for the market, as in the instance with the federal government’s use of the Sherman Act against AT&T, which led to a communication revolution, there are a couple of issues concerning antitrust laws. The first is issue is the interpretive nature of the federal and state government laws. The Sherman Act, The Federal Trade Commission Act, and the Clayton Act are federal statutes written in general language rather than exact verbiage on code of conduct. In the case of Continental TV vs. GET, Sylvania this general language along with the court’s interpretation of the laws has brought instances where precedent has been changed leading to unknown permissible behavior for companies. The second issue is the increasing…

    • 374 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Google, Inc

    • 377 Words
    • 2 Pages

    Question: (Case 1-1 Google, Inc.) Where is the company most vulnerable, from a communications standpoint?…

    • 377 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Around 1890, Congress started to create antitrust laws, and several cases involving antitrust laws as early as the past year, such as the Sherman Act which outlaws "every contract, combination, or conspiracy in restraint of trade," and any "monopolization, attempted monopolization, or conspiracy or combination to monopolize.” The antitrust laws prohibit illegal mergers and commercial practices in general terms, thus leaving the courts to decide on which practices are unlawful based on the facts of each case.…

    • 302 Words
    • 2 Pages
    Good Essays