The Market Realities that Undermined the FTC's Antitrust Case Against Google

GA Manne, W Rinehart - Harvard Journal of Law and Technology …, 2013 - papers.ssrn.com
GA Manne, W Rinehart
Harvard Journal of Law and Technology Occasional Paper Series-July, 2013papers.ssrn.com
The FTC completed its antitrust investigation of Google in 2013 and, finding no evidence of
antitrust violations, decided not to bring an enforcement action against the company.
Although the FTC has concluded its investigation, Google's competitors and critics, unhappy
with the outcome, continue to raise issues and criticize the FTC's decision. In this brief article
we discuss the FTC's decision and assess the merits of the claims still being raised. The
critics' case against Google rests on certain assumptions about how the markets in which it …
Abstract
The FTC completed its antitrust investigation of Google in 2013 and, finding no evidence of antitrust violations, decided not to bring an enforcement action against the company. Although the FTC has concluded its investigation, Google’s competitors and critics, unhappy with the outcome, continue to raise issues and criticize the FTC’s decision. In this brief article we discuss the FTC’s decision and assess the merits of the claims still being raised. The critics’ case against Google rests on certain assumptions about how the markets in which it operates function. But these are technology markets, constantly evolving and complex; most assumptions, and even “conclusions” based on data, are imperfect at best. The market realities in which Google operates, while not dispositive, strongly challenge the logic and thus the relevance of many of the contentions still being maintained by Google’s critics.
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