US govt may initiate more antitrust investigations against Google

Google faced antitrust investigations in 2013 over allegations of monopolistic behavior

This is the moment the US technology superpowers surely knew was coming: The US government is preparing to crawl all over Google to figure out whether it is an abusive monopolist. Google parent company Alphabet Inc. and the other tech giants should be quaking in their fleece vests.

Bloomberg News and other news organizations reported late Friday that the US Department of Justice is preparing to open an investigation into Google’s compliance with antitrust laws. If it goes forward, an investigation will no doubt be broad, lengthy, messy, and impossible for Google and its investors to predict.

That should terrify Google and every other big technology company — because there’s no guarantee that the antitrust Klieg light will turn on one company alone.

 

 

Bulked Up

The company now called Alphabet has gained more than $500 billion of stock market value since the FTC closed a prior antitrust investigation

 

 

 

 

This isn’t Google’s first antitrust rodeo. The US Federal Trade Commission in 2013 closed without further action in its own antitrust investigation into whether Google wielded its dominant web search engine like a cudgel to disadvantage rivals, drive up prices for advertisers and ultimately harm consumers. (Google did agree to some voluntary changes.)

And in recent years, the European Union antitrust watchdog imposed billions of dollars in fines after finding antitrust violations, including over how Google conducted business with its Android smartphone software and its internet shopping service. In the U.S. and elsewhere, politicians from all party stripes have sought to attack Google or other tech giants for various perceived sins, including being too big for the good of industry and consumers. Being Google has meant dealing with perennial regulatory and political nightmares.

This latest chapter of “As Google Turns” may have started in January on Capitol Hill. “I don’t think big is necessarily bad, but I think a lot of people wonder how such huge behemoths that now exist in Silicon Valley have taken shape under the nose of the antitrust enforcers,” Bill Barr, now the US attorney general, said to U.S. senators during a confirmation hearing. The DOJ’s chief antitrust enforcer, who represented Google during a merger more than a decade ago, has expressed similar views. 

Antitrust investigations are difficult to predict, of course. Once the U.S. government pores over every internal email and business development contract, there’s no telling what it will turn up. If the DOJ moves ahead, it will also be an open invitation for every company or individual with a gripe against Google to pile on, and an investigation will embolden critics of Facebook, Amazon and other tech giants as well.