Google Said to Face New Antitrust Probe Over Display Ads

[StandingInAlley]

Google Inc. (GOOG) is facing a new antitrust probe by the U.S. Federal Trade Commission into whether the company is using its leadership in the online display-advertising market to illegally curb competition, people familiar with the matter said.

The fresh inquiry, which follows the FTC?s decision to close a review of Google?s search business in January without taking action, is in the preliminary stages and may not expand into a larger probe, said the people, who asked not to be named because the matter hasn?t been made public.

FTC investigators are examining whether Google is using its position in U.S. display ads -- a $17.7 billion industry that includes the sale of banner ads on websites -- to push companies to use more of its other services, a practice that can be illegal under antitrust laws, the people said. Google has been drawing regulatory scrutiny around the world as it bolsters its market share of digital advertising.

Canada?s Competition Bureau is preparing to start a formal inquiry into Google?s search practices, the company disclosed last week. The European Union is investigating Google for the way it operates the search business and also has opened a probe into its handset unit, Motorola Mobility, over the licensing of its patents to rival device makers. Antitrust agencies in Argentina and South Korea are also scrutinizing the company.

Niki Fenwick, a spokeswoman for Google, and Peter Kaplan, a spokesman for the FTC declined to comment on the probe.

Google fell almost 1 percent after the news of the probe was released and closed at $882.79, down $6.63, in New York trading.

Earlier Probe

Google, avoiding a potentially costly legal battle with U.S. regulators, ended a 20-month probe in January of whether it unfairly skewed search results by pledging to change some business practices and settling allegations it misused patents to thwart competitors in smartphone technology.

The company said it would voluntarily remove restrictions on the use of its online search-advertising platform and offer companies the option of keeping their content out of Google?s search results.

The FTC?s resolution of its search-practices probe came as a blow to Google?s competitors including Microsoft Corp. (MSFT), Yelp Inc. (YELP) and Expedia Inc. (EXPE) An alliance of such e-commerce and Web-search companies pressed the agency to bring a lawsuit, claiming Google?s dominance of Internet search, combined with the company favoring its own services in answers to queries, violates antitrust laws.

Microsoft isn?t involved in the FTC?s review of the display advertising market, one of the people said.

Justice Department

The FTC secured clearance to move forward with the new investigation in the display-advertising market from the antitrust division of the Justice Department under a process that ensures the two agencies don?t investigate the same matters at the same time, one of the people said.

For the past two years, the antitrust division and the FTC have split investigations of the Mountain View, California-based company, with the FTC conducting a broad probe of whether Google?s business practices hurt competition and the antitrust division reviewing its acquisitions.

In the new probe, the FTC is exploring concerns about Google?s growing market share with some of its digital advertising tools and services, including technology that places display ads on websites, the people said.

http://www.bloomberg.com/news/2013-05-23/google-said-to-face-new-antitrust-probe-over-display-ads.html

[Growled Member]

The fresh inquiry, which follows the FTC?s decision to close a review of Google?s search business in January without taking action, is in the preliminary stages and may not expand into a larger probe, said the people, who asked not to be named because the matter hasn?t been made public.

Oh, I believe it will be expanded. Google's stock is probably riding too high for some people's comfort.