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Google settles US anti-trust probe Google forced to change practices
(35 minutes later)
The US Federal Trade Commission has concluded a 20-month investigation into Google's business practices, saying it found no evidence that the search giant skewed search results. Google has agreed to make "significant changes" to its business practices as a result of a 20-month investigation by the US Federal Trade Commission (FTC).
But it did accuse the firm of "unfair conduct" in the use of its Motorola patents and ordered it to allow others to license them. The FTC accused the search giant of "unfair conduct" in the use of its Motorola patents and ordered it to allow others to license them.
Google has agreed to change some of its search and advertising practices.Google has agreed to change some of its search and advertising practices.
Rivals including Microsoft are not happy with the changes. But the FTC found no evidence that Google had skewed search results to damage competitors.
Rivals including Microsoft are not happy with the findings.
The FTC was asked to investigate whether Google was favouring its own products in search results.The FTC was asked to investigate whether Google was favouring its own products in search results.
FTC chairman Jon Leibowitz told a press conference that the commission had found no evidence that Google's search engine was biased towards its own services.FTC chairman Jon Leibowitz told a press conference that the commission had found no evidence that Google's search engine was biased towards its own services.
"Some may believe the commission should have done more, but for our part we do follow the facts where they lead," he said."Some may believe the commission should have done more, but for our part we do follow the facts where they lead," he said.
"We do it with appropriate rigour. This brings to an end the investigation. It is good for consumers, it is good for competition and it is the right thing to do.""We do it with appropriate rigour. This brings to an end the investigation. It is good for consumers, it is good for competition and it is the right thing to do."
One of the biggest changes to be implemented by Google will allow advertisers to copy ad campaign data to other search engines, such as Bing.One of the biggest changes to be implemented by Google will allow advertisers to copy ad campaign data to other search engines, such as Bing.
Google is also promising that it will stop copying content from other websites to use in its summaries, even though the company had insisted the practice is legal under the fair-use provisions of US copyright law. Google is also promising that it will stop copying content from other websites to use in its summaries, even though the company had insisted the practice was legal under the fair-use provisions of US copyright law.
In response to the settlement, Google's chief legal officer David Drummond said in a blog post: "The US Federal Trade Commission today announced it has closed its investigation into Google after an exhaustive 19-month review that covered millions of pages of documents and involved many hours of testimony.In response to the settlement, Google's chief legal officer David Drummond said in a blog post: "The US Federal Trade Commission today announced it has closed its investigation into Google after an exhaustive 19-month review that covered millions of pages of documents and involved many hours of testimony.
"The conclusion is clear: Google's services are good for users and good for competition"."The conclusion is clear: Google's services are good for users and good for competition".
Big fineBig fine
It does not mean that the search giant is out of the woods on the issue of anti-competitive practices.It does not mean that the search giant is out of the woods on the issue of anti-competitive practices.
Alongside the FTC investigation, Google is still under scrutiny from the EU. Alongside the FTC investigation, Google is still under scrutiny from the European Union.
In December the EU's Competition Commission gave the search giant a month to address four key areas: In December, the EU's Competition Commission gave the search giant a month to address four key areas:
  • the manner in which Google displays "its own vertical search services differently" from other, competing products
  • how Google "copies content" from other websites - such as restaurant reviews - to include within its own services
  • the "exclusivity" Google has to sell advertising around search terms people use
  • restrictions on advertisers from moving their online ad campaigns to rival search engines
  • the manner in which Google displays "its own vertical search services differently" from other, competing products
  • how Google "copies content" from other websites - such as restaurant reviews - to include within its own services
  • the "exclusivity" Google has to sell advertising around search terms people use
  • restrictions on advertisers from moving their online ad campaigns to rival search engines
Google is expected to respond to these concerns shortly.Google is expected to respond to these concerns shortly.
If found guilty of breaching EU anti-trust rules, Google could face a fine of up to $4bn (£2.5bn). If found guilty of breaching EU anti-trust rules, Google would face a fine of up to $4bn (£2.5bn).
Failing consumersFailing consumers
Lobby group Fairsearch.org, an alliance that includes Microsoft and Expedia, is unhappy about the compromise agreement.Lobby group Fairsearch.org, an alliance that includes Microsoft and Expedia, is unhappy about the compromise agreement.
In a blog post earlier this week anticipating the US regulator's decision it said: "If the FTC fails to take decisive action to end Google's anti-competitive practices, and locks itself out of any remedies to Google's conduct that are offered in Europe later this month, it will have acted prematurely and failed in its mission of protecting America's consumers."In a blog post earlier this week anticipating the US regulator's decision it said: "If the FTC fails to take decisive action to end Google's anti-competitive practices, and locks itself out of any remedies to Google's conduct that are offered in Europe later this month, it will have acted prematurely and failed in its mission of protecting America's consumers."
Microsoft has been one of Google's most vocal critics. In a blog post of its own this week it piled more pressure on regulators to take decisive action.Microsoft has been one of Google's most vocal critics. In a blog post of its own this week it piled more pressure on regulators to take decisive action.
"Hopefully, Google will wake up to a New Year with a resolution to change its ways and start to conform with the antitrust laws. If not, then 2013 hopefully will be the year when antitrust enforcers display the resolve that Google continues to lack," wrote Dave Weiner, deputy general counsel at Microsoft."Hopefully, Google will wake up to a New Year with a resolution to change its ways and start to conform with the antitrust laws. If not, then 2013 hopefully will be the year when antitrust enforcers display the resolve that Google continues to lack," wrote Dave Weiner, deputy general counsel at Microsoft.
He accused Google of blocking Microsoft's Windows phones from operating properly with YouTube.He accused Google of blocking Microsoft's Windows phones from operating properly with YouTube.
"Google has enabled its own Android phones to access YouTube so that users can search for video categories, find favourites, see ratings, and so forth in the rich user interfaces offered by those phones. It's done the same thing for the iPhones offered by Apple, which doesn't offer a competing search service."Google has enabled its own Android phones to access YouTube so that users can search for video categories, find favourites, see ratings, and so forth in the rich user interfaces offered by those phones. It's done the same thing for the iPhones offered by Apple, which doesn't offer a competing search service.
"Unfortunately, Google has refused to allow Microsoft's new Windows phones to access this YouTube metadata in the same way that Android phones and iPhones do," he added."Unfortunately, Google has refused to allow Microsoft's new Windows phones to access this YouTube metadata in the same way that Android phones and iPhones do," he added.