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Thursday, January 10, 2013

— Anyone feeling deja vu over the Federal Trade Commission’s Google investigation?

A company with a dominant technology platform, in this case, search, was accused of exploiting its position to squash competitors.

In the 1990s, Microsoft was investigated for using its monopoly with Windows to expand its Web browser business.

The ensuing trial and consent decree forced the company to change its ways. The FTC has now announced a toothless settlement with Google after investigating allegations of anticompetitive practices in search and patents.

Competitors said Google promoted advertisers’ search results over the organic results in the middle of the page, which users expect to display the most commonly clicked websites. Google has a clear competitive advantage with 67 percent of search traffic, which also means it can set the rules for online advertisers.

The FTC for the most part ignored the complaints of search bias in its settlement. It failed to judge Google by the same standards in Microsoft’s antitrust case.

What’s good for the goose is good for the gander.

The unequal application of antitrust law undermines the confidence of innovators and investors. Most important, consumers have been denied access to a fair marketplace for the most competitive businesses and services via Google’s search engine.

Editorial, Pages 12 on 01/10/2013