A Victory for Google as F.T.C. Takes No Formal Steps

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The New York Times
Friday, January 04, 2013

A Victory for Google as F.T.C. Takes No Formal Steps

By EDWARD WYATT

WASHINGTON — The Federal Trade Commission on Thursday handed Google a major victory by declaring, after an investigation of nearly two years, that the company had not violated antitrust or anticompetition statutes in the way it arranges its Web search results.

By allowing Google to continue to present search results that highlight its own services, the F.T.C. decision could enable Google to further strengthen its already dominant position on the Internet.

It also enables Google to avoid a costly and lengthy legal war of attrition like the antitrust battle that Microsoft waged in the 1990s. That fight took an enormous toll on Microsoft and opened the door for competitors like Google to become the technology sector’s new leaders. Now, a weakened Microsoft was among those most vocal in complaining that Google was unfairly abusing a monopolistic position to thwart its rivals.

Google, which attracts 70 percent of all search queries in the United States, has used its search business, which generates billions of dollars in profit annually from advertising, to expand into businesses that include maps, restaurant reviews and travel bookings. Competitors worry that the F.T.C.’s decision will allow Google to continue to make inroads at their expense.

The decision sets up a potential conflict with European officials, who are working with Google to resolve similar concerns about the way the company operates its search engine in Europe, where it is even more dominant than in the United States.

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