F.T.C. Pushes Antitrust Inquiry Against Google Into January

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The New York Times
Thursday, December 20, 2012

F.T.C. Pushes Antitrust Inquiry Against Google Into January

By EDWARD WYATT and CLAIRE CAIN MILLER

WASHINGTON — Google was prepared to start the holidays early this week, by settling its antitrust dispute with federal regulators without a harsh punishment.

But in shelving its inquiry until January, the Federal Trade Commission has put stronger penalties back on the bargaining table, people briefed on the investigation who were not authorized to speak publicly about it said Wednesday.

For two years, the F.T.C. has been looking into whether Google abuses its market power by favoring its own services over rivals in search results. Google and the agency had been planning to sign a settlement this week that would have said Google would change some of its behavior but that would not have been subject to court action.

The agency may now demand a consent decree — a formal order detailing anticompetitive behavior and an agreement that if the company does the same thing again, it could be fined and subject to court sanctions. Google has instead offered voluntary concessions.

But the people briefed, and others close to the negotiations, said the agency was unlikely to take a second look at one of the major issues — Google’s dominance in specialized search, like travel and local reviews — because the legal hurdles remain high.

Google has long said that it does not believe it has broken antitrust laws and that the agency’s case against it is weak. Jill Hazelbaker, a Google spokeswoman, said that it continued to cooperate with the F.T.C. but declined to comment further.

Cecelia Prewett, an F.T.C. spokeswoman, declined to comment.

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