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politics
Is Google Heading For an Antitrust Trainwreck?
Everyone has misunderstood why Google, from CEO Eric Schmidt on down, is cozying up to Barack Obama. It's not out of some likeminded geekiness. It's out of desperation and fear.
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antitrust
Uh Oh, Google's in More Antitrust Trouble!
Google's G1 is the biggest enemy of Apple's iPhone. And Apple is making a big push into the Web. So it's totally hunky-dory that Google and Apple share board members, right? Wrong, say antitrust cops. More » -
flackery
Microsoft's Secret Campaign Against Google Includes CEO's Ex-Girlfriend
Marcy Simon, the former mistress of Google CEO Eric Schmidt, has landed a PR gig at Mark Penn's Burson-Marsteller. We hear her new job is stirring up antitrust trouble for Google at Microsoft's behest. More » -
antitrust
It's Time to Ask if Google's Too Big to Fail
Google CEO Eric Schmidt recently told the BBC that the U.S. should break up banks that get "too big to fail." What about Google? Is it too big — and should the government take action? More » -
antitrust
A taste of their own medicine
Microsoft, harried by regulators in the 1990s, once lobbied Congress to cut spending on antitrust enforcement. Now, it's profiting from their efforts. The software giant's lobbying budget nearly doubled from 2006 to 2008, helping it sink Yahoo's deal to have Google sell ads for its search pages. The failure of that deal helped speed Yahoo CEO Jerry Yang out the door, and could set Microsoft up to win Yahoo's search business. CNET News] -
antitrust
Three big LCD makers to pay $585 million for price fixing
LG, Sharp and Chunghwa have agreed to plead guilty. The crime: Coordinating higher prices on flat-screen LCD displays sold to Apple, Dell, Motorola and others. The Department of Justice's antitrust division claims the three companies held meetings and traded messages in order to agree on higher prices for the displays. The DOJ's press release has full details. (Illustration by Plasma.com) -
antitrust
America's CTO bows to the feds on Yahoo-Google deal
When did Eric Schmidt turn into such a wimp? When Google and Yahoo first proposed a deal to have Google sell search ads for Yahoo, Schmidt brazenly gave antitrust regulators a four-month deadline to review it. After that, Google would blaze ahead with the deal. The deadline came and went. Over the weekend, Google and Yahoo turned in a revised deal that they hoped would impress regulators. The bottom line: It is half as lucrative as Yahoo had hoped, generating $400 million a year rather than $800 million, limiting Google-sold ads to a quarter of Yahoo's search-related revenue. It's better than nothing, but it leaves Schmidt in a weak position the next time he wants to talk tough with the feds. Then again, maybe he's planning to dump Larry and Sergey for a nice, safe government job. -
antitrust
"Is Google playing chicken with the Justice Department?"
That's the question about the company's obvious leaks to the Wall Street Journal which suggest it might walk away from talks with the government about its search deal with Yahoo. Short answer: Yes, yes it is. [BoomTown] -
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search
The Yahoo-Google deal? Let's just assume that's not happening
Yahoo's deal to outsource some of its search advertising to Google continues to face scrutiny on Capitol Hill. Google CEO Eric Schmidt had said he'd carry out the deal whether or not regulators had finished their review. Regulators called his bluff, and America's CTO has now lost face, not to mention credibility. Why not just bow out and move on? That seems easier. -
antitrust
Google's Russian acquisition delayed by regulators
Why hasn't Google finished its acquisition of Begun, a Russian online-advertising startup? The country's antitrust authority has asked Google to provide lists of people who control the company. Or work there. Something may have been Sergey Brin was born in the Soviet Union, but antisemitism is alive and well in an increasingly nationalist Russia — and Brin, who is Jewish, and liberal, is no friend of the authoritarian state. -
antitrust
Senator wants to babysit Yahoo-Google after deal
If the Justice Department does allow Google to serve ads on some of Yahoo's websites, Wisconsin Senator Herb Kohl believes it should then monitor "the amount of advertising outsourced by Yahoo to Google" to make sure it doesn't increase over time. His math: "Should the amount significantly increase, we believe the threat to competition will also increase." Then, the DOJ could step in "if, over time, you determine that Google is gaining a dominant market position as a result of the Google-Yahoo agreement." Here's hoping Alaska Senator Ted Stevens will weigh in next on the need to monitor the deal's tube-clogging effects. [Reuters] -
nerdfight
Kara Swisher vs. Google
The Justice Department met with Google and Yahoo's customers and competitors this week as it continues to build an antitrust case for its litigious hired gun Sandy Litvack. On top of that, Canada is now on Google's case too, having hired antitrust lawyer David Kent. Never heard of him, sure he's a hoser, eh. In response to all the haters, Google just made itself another enemy: Kara Swisher, the mean lesbian mommyblogger employed by Rupert Murdoch and partnered to Google executive Megan Smith. Fun times at home! More » -
antitrust
Google hikes ad prices even before Yahoo deal kicks in
CEO Eric Schmidt says Google is moving at full speed with plans to place ads on its archrival Yahoo, even though the Department of Justice is just gearing up to take action on the deal. The deal, signed in June, is set to start in weeks. "You face a question as a large company trying to change things: How many initiatives do you want to take on that are unpopular or lead to criticism?" said Schmidt in a press conference. By "change things," Schmidt would have you think he's talking about saving the world. But here's something that should draw interest from antitrust cops: A Valleywag tipster says that one unpopular change Google is making is to hike the minimum bids on some ads tenfold. That kind of pricing power is usually a sign of a monopoly. And it should well lead to criticism. More » -
Acqusiitions
Why Apple's forcing Samsung to chase SanDisk
Samsung has launched a hostile $5.9 billion offer for SanDisk, a rival maker of flash-memory chips, which SanDisk has rejected. Toshiba, which manufactures chips in partnership with SanDisk, is considering a blocking bid. The posturing is typical: SanDisk says the bid undervalues the company, while Samsung executives retort that it is "full and fair." Leave aside the deal theatrics: Why does Samsung want SanDisk? More » -
online advertising
Three questions for Google's economics professor
We would never claim to be as smart as Google's pet economics professor, Hal Varian. But rereading the blog post Varian wrote to refute claims that Google's deal to sell ads on Yahoo would raise prices, some of his points puzzled us. Were I a student in one of his Berkeley classes, I'd raise my hand to ask three questions: More » -
hal varian
Google's econ prof explains benefits of ad monopoly
Hal Varian has a sweet gig. Not only is he Google's chief economist, but he also still holds professorships in three departments at Berkeley — Economics, the School of Information, and the prestigious Haas School of Business. Today, Varian put on his Google cap on to fisk a widely-circulated report that claimed the company's new ad deal with Yahoo would raise prices all around. It's actually worth reading, at least up to "the report suffers from a number of methodology flaws." -
antitrust
Microsoft is pushing reporters, ad agencies, and lawmakers on Google-Yahoo deal
The U.S. Justice Department has agreed to share documents with California attorney general Jerry Brown's office regarding a possible antitrust suit against Google. Both federal and state lawyers are targeting Google over its deal to sell some of Yahoo's search ads. California's investigation comes at the behest of state assemblyman Joel Anderson, who wrote in a letter to Brown's office: "We're talking about giving (Google and Yahoo) over 90 percent market share — nobody else on the Web has a database like that. Who can compete?" If Anderson's concern sounds familiar, its because in recent days big advertisers, small advertisers and federal lawyers have expressed similar concerns with similar wording. That's because it's all coming from the same source: Microsoft and its CEO Steve Ballmer, who's still bitter about Google blocking its Yahoo acquisition. Says one trade reporter also subject to the Seattle company's lobbying efforts: More » -
online advertising
Here comes the Google antitrust case
The Justice Department is probably going to bring an antitrust suit against Google, experts are beginning to say. Yesterday, the department hired former Disney superlawyer Sandy Litvack to take a closer look at Yahoo's deal to outsource search to Google. “They wouldn’t bring in a special counsel unless they were preparing to litigate,” says Sam Miller, the lawyer who defended Microsoft's antitrust trial. Former FCC official Blair Levin agrees. Levin wrote in a Stifel Nicholas research note yesterday that "the hiring of a lawyer with this kind of background is far more rare, and, in our memory, the times when this has happened the Department brought a case." The irony: if the U.S. does win the case against Google, it won't be the search giant which feels the most pain. Yahoo would lose $250 million to $450 million in cash it's counting on raking in. -
politics
Google, Yahoo lawyers sell lawmakers on ad deal, while Microsoft and AT&T cry foul
Google, Microsoft and Yahoo lawyers yesterday answered lawmakers' questions about the effect Yahoo's deal to outsource some of its search to Google will have on the search ad market. Microsoft's top lawyer, Brad Smith, said the deal will eliminate Yahoo as a competitor from the market and drive up prices for advertisers. He told lawmakers Yahoo CEO Jerry Yang admitted as much to Microsoft representatives in a June 8 meeting in San Jose. More » -
google
Google's antitrust defense — the 100-word version
Google has come under increasing fire for a lack of transparency in how it does everything — from keeping porn off YouTube to calculating advertising rates to determining which search results go where. I may personally distrust the wise benevolence of markets, but information asymmetry is a time-tested business tactic. In an article comparing the applied economics of Microsoft in the PC era and Google in the Internet era, the New York Times gets more of the same blather from the Googleplex regarding the enigma wrapped inside a puzzle wrapped inside the algorithm from Hal Varian, Google's in-house rent-a-quote economics guru: More » -
politics
IBM's new antitrust muddle
European regulators are looking into whether IBM is unfairly dominating the mainframe market. What, is this 1968? IBM's purchase of Platform Solutions, a 36-person rival which made cheaper versions of IBM's mainframes, would normally be too small to rouse antitrust inquiries. But, amid accusations that IBM bought the firm to quash a rival, regulators are looking into it nonetheless. I'm actually disinclined to believe the conspiracy theories. IBM, under official antitrust oversight for decades, surely doesn't want to invite government officials back in. More » -
antitrust
Yahoo, Google deal officially being investigated by DOJ
"What is Yahoo's incentive to continue to compete?" That's the question Clinton-era Federal Trade Commission competition policy director David Balto asked of the search advertising deal between Yahoo and Google. And that's just one of many questions that will be asked by the Department of Justice now that officials have opened a formal investigation into the deal, according to unnamed sources cited by the Washington Post. More » -
politics
Yang answers to lawmakers skeptical over Google deal
Board members, employees, shareholders and now Congressional lawmakers wonder whether Yahoo CEO made the right call outsourcing Yahoo search ads to Google. Yang is in Washington to answer their concerns, meeting with Senator Herb Kohl (D.-Wisc.) and Senator Richard Durbin (D-Ill.) yesterday. Later this week, he'll meet with Representative Joe Barton (R.-Texas), who earlier wrote a letter to Yang asking him to explain how the deal won't "have an anticompetitive impact on the online-search market, including the pricing of online-search advertising." More » -
politics
Google called "Robber Baron" by National Black Chamber of Commerce
The National Black Chamber of Commerce has weighed in against the partnership between Google and Yahoo, suggesting that by gaining control of Yahoo's search advertising inventory, it will create a single auction market for search ad placement and lead to higher prices. More » -
lawsuits
Yahoo memo makes Microsoft's antitrust argument against Yahoo-Google
If Yahoo outsources search to Google, Microsoft will come screaming to antitrust regulators. How will Microsoft lawyers make their case? They'll let Yahoo docs do the talking. Before Yahoo was for outsourcing its search to Google, Yahoo was against outsourcing its search to Google. To explain why, Yahoo execs prepared a document for an all-hands meeting to be held on January 30. The document is part of the complaint a judge presiding over a shareholder suit against Yahoo released to the public yesterday. It reads: More » -
quotable
And by "compete," we mean "grind the bones of our enemies into dust" — did I say that out loud?
"Guys like us avoid monopolies. We like to compete." — Microsoft chairman Bill Gates, whose company remains under antitrust supervision, at the All Things Digital conference Tuesday. -
great moments in pr
To push Yahoo deal, Google's dumpster-diving lobbyists recycle talking points
In the '90s, Washington PR firm Chlopak Leonard Schechter pushed anti-Microsoft information that its client, Oracle, had obtained through hiring investigators to rifle through garbage. Now working for Google, Chlopak is taking a greener approach: It's reusing Google-friendly quotes already aired in the press as fill-in-the-blank quotes for other journalists. Chlopak flack Rob Haralson does not note that the quotes, which support Google's proposed deal to take over Yahoo's search advertising, mostly come from Google executives or lawyers speaking anonymously. Still, Haralson may not be acting as strategically as he thinks. The quotes portray the deal, which is facing antitrust scrutiny in Washington, as no more significant than a supplier providing parts to a PC maker. That may not be a particularly good analogy — has Haralson ever sat in on an Intel negotiation? Google's recycled arguments: More » -
antitrust
Google's answer to antitrust concerns over Yahoo deal: Whirlpool
Yahoo executives want to let Google serve ads next to its search results. But that would mean Google would be selling ads on 80 percent of all search queries online. Microsoft won't let that happen without stirring up antitrust fears in Washington. Secret Google sources tell the New York Times they plan to get around these concerns by schooling regulators on the concept of "co-opetition," which they say what Toyota does when it sells hybrid engines to GM, or when Whirlpool makes appliances for Sears. More » -
clips
Larry Page: Microsoft's "history of doing bad stuff" makes Yahoo merger risky
Taking questions after a speech before the New America Foundation, Google cofounder Larry Page told the crowd the reason Microsoft and Yahoo shouldn't merge is that it would give Microsoft too much control over email and instant messaging. "90 percent of the communications all in one company, I think that's a really big risk." We totally agree! So when will Google open its search results pages to third-party advertisements? -
deals
Google moves to quash Wall Street's hopes for Microsoft-Yahoo deal — and with it, Yahoo's stock price
Yahoo shares are hovering around $25 because investors hope major Yahoo shareholders can still force a deal with Microsoft at $33 per share or more. But at Google's annual shareholder meeting yesterday, cofounder Sergey Brin and CEO Eric Schmidt tried their best to destroy those hopes, amping up talk of a deal that would outsource Yahoo's search advertising to Google and make Yahoo unattractive to Microsoft. Brin said the deal is designed to keep Microsoft at bay. "[Yahoo was] under a hostile attack and we wanted to make sure they had as many options as possible," Brin said. More » -
antitrust
Microsoft officially hiring "Google killers"
After more than a decade of trans-Atlantic antitrust scrutiny, one would think Microsoft would be, oh, I don't know, subtle about its ambitions to destroy a competitor. Someone in Microsoft's European HR offices didn't get the message. A poster advertising jobs at Microsoft Europe lists, among other qualities it's looking for in candidates, the ability to be a "Google killer." -
feuds
AMD accuses Intel of microprocessor payola
Struggling chipmaker AMD has added a new allegation to the company's antitrust complaint against rival chipmaker Intel. In a 108-page document filed in federal court, plaintiff AMD accused defendant Intel of paying manufacturers like Dell not to use AMD processors, citing internal emails and other documents which were turned over through the discovery process in the case. AMD has been struggling, having laid off thousands in the last few months. CEO Hector Ruiz, pictured here, is expected to make a major announcement today in Austin, Texas, possibly splitting up the company into separate chip-design and chip-fabrication businesses. -
antitrust
Microsoft-Yahoo failure is Google's first Washington win
Microsoft's bid for Yahoo may have been dropped at a meeting in Washington state, but it was lost in Washington, D.C. Google's first word on the prospective deal, from top lawyer David Drummond, was of the cominbation's monopoly in email and instant messaging. That proved the last word, too. By making Yahoo fearful of regulatory scrutiny, Drummond and his lobbyists were able to put steel in Jerry Yang and David Filo's backbones to hold out for a higher price, and demand other conditions besides. The notion that Microsoft might pursue a Yahoo bid and have it nixed, leaving Yahoo incurably weakened, may give Yang and Filo some protection from inevitable shareholder lawsuits. But Google, by keeping Yahoo out of Microsoft's hands, is the real winner. -
antitrust
Australians question eBay's PayPal-only policy
Years ago, PayPal was an independent company which fought constantly with eBay to be allowed on the site as a way to settle accounts after an auction was won. Now, years after eBay bought PayPal, the payments service is elbowing out all manner of competition. In Australia, eBay is limiting purchases to either PayPal or cash on delivery — no checks or money orders allowed, let alone rival electronic payment methods. In the U.S., eBay was sued last year for tying PayPal too closely to its online marketplace. How soon they forget: PayPal is aiming to quash an economic freedom its founders, including noted libertarian Peter Thiel, fought for. -
antitrust
XM-Sirius merger approved by Feds
After a careful and thorough review of the proposed transaction, the Division concluded that the evidence does not demonstrate that the proposed merger of XM and Sirius is likely to substantially lessen competition, and that the transaction therefore is not likely to harm consumers. The Division reached this conclusion because the evidence did not show that the merger would enable the parties to profitably increase prices to satellite radio customers for several reasons, including: a lack of competition between the parties in important segments even without the merger; the competitive alternative services available to consumers; technological change that is expected to make those alternatives increasingly attractive over time; and efficiencies likely to flow from the transaction that could benefit consumers.
[DOJ] -
politics
EU fines Microsoft 899 million euros — and the euro just hit an all-time high
European Union regulators fined Microsoft 899 million euros — $1.35 billion and counting — for failing to comply with a 2004 antitrust decision. The order said Microsoft overcharged for patent licenses and documentation which developers needed to build applications on Windows. Compliance with this antitrust order is the reason Microsoft released 30,000 pages of documentation last week — all under the guise of being "open source" friendly. Unfortunately for Microsoft, the euro hit an all-time high against the dollar this morning, priced at $1.5057 to €1. If Microsoft had just settled this in 2004, instead of fighting, it would have saved $400 million. (Photo by AP) -
google
Sergey Brin plays possum for the press
Sergey Brin told press gathered at the Googleplex yesterday that he finds Microsoft's Yahoo takeover attempt "unnerving." Because see, the Internet is meant to be wide open and not controlled by one powerful company, Brin told the AP.When you start to have companies that control the operating system, control the browsers, they really tie up the top Web sites, and can be used to manipulate stuff in various ways. I think that's unnerving.
The quote reads like an email to Washington antitrust regulators. And it's meant to. But Sergey, you don't need to manipulate the press to give Microsoft as hard of a time it gave Google-DoubleClick in Washington. Just invite your FTC lackeys back to Aspen for another ski trip. (Photo by jdlasica) -
open source
Microsoft buries programmers in 30,000 pages of documentation
To fend off European regulators, Microsoft has released 30,000 pages of documentation about its development practices. Company spokespeople insist the online reference library will make Microsoft more "open" — a word used 17 times in the press release today as Microsoft complies with a ruling it fought tooth and nail. Amateurs. The White House would have cranked up the pagecount to at least 3 million. (Photo by AP/Manuel Balce Ceneta) -
antitrust
Yang loses his Google escape route
Brin, Page and Schmidt have cut and run on Yahoo CEO Jerry Yang. Word is Google execs visited with Yang and the Yahoo board last week and encouraged them to say no to Microsoft's offer. As incentive to do so, Google is said to have offered to take over Yahoo search and immediately boost the floundering company's cash flow. On Monday, Yang officially rejected Microsoft's offer. But now that Yang and the board face a proxy fight with Microsoft, these Google executives are suddenly less interested in bailing Yahoo out, the WSJ reports. Sources tell the paper that the Googlers' enthusiam waned as antitrust worries waxed. But we wonder if all Google wanted in the first place was to keep Microsoft and Yahoo from doing anything quickly. -
google
Microsoft to reporters: Stop blathering about a webmail monopoly
A Microsoft-Yahoo merger would give Microsoft control of more than 90 percent of email and instant messaging traffic worldwide. But when a reporter from AdAge asked Microsoft VP Yusuf Mehdi about it, he shushed her. "The core of the combination is around search and advertising," Mehdi said, "The other allegations are not there and not the focus of what we should be talking about in this combination." We'll ignore that advice, but agree with the sentiment. Last we checked, email use was in decline relative to other forms of online communication, such as social network messaging. (Photo by richard winchell)






























