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US preparing antitrust probe of Google: report
SAN FRANCISCO, June 1, 2019 (BSS/AFP) – The US Department of Justice is
preparing an antitrust investigation of Internet titan Google, the Wall
Street Journal reported on Friday.
The Journal cited unnamed sources close to the matter as saying the
department would look into Google practices related to web search and other
businesses.
Justice department officials share antitrust oversight with the Federal
Trade Commission, which conducted a wide-ranging investigation of its own
into Alphabet-owned Google that ended in 2013 with no action taken.
Google did not immediately respond to a request for comment.
A new investigation would come as backlash grows against major tech
companies that dominate key segments of the online economy.
Democratic presidential candidate Elizabeth Warren has argued that big
firms such as Facebook, Google and Apple should be broken up through
antitrust enforcement.
Alphabet’s profit in the first three months of this year sagged under the
weight of a hefty antitrust fine in the European Union.
Alphabet said profit in the first-quarter fell 29 percent to $6.7 billion
on revenue that climbed 17 percent to $36.3 billion.
The earnings took a hit from a European Commission fine that amounted to
$1.7 billion at the end of March, according to the quarterly update.
Google’s lucrative advertising platform remained the largest revenue driver
for Alphabet, delivering more than $30 billion in revenue, but costs rose
sharply as well.
But Google continues to face pressure around the world from regulators,
notably in Europe amid multiple investigations over alleged abuse of its
dominance in internet search, advertising and its mobile system.
The latest fine imposed by Brussels cited Google’s AdSense advertising
service, saying it illegally restricted client websites from displaying
messages from ad service rivals.
Google is separately working to satisfy EU regulators investigating its
hugely popular Android devices following a $5 billion fine last year.
Google earlier this year said it would offer smartphone users five browsers
and search engines as part of the company’s effort to meet EU competition
concerns.
Brussels accused Google of using the Android system’s dominance of
smartphones and tablets to promote the use of its own Google search engine
and Chrome browser and shut out rivals.
In the United States, Google has been a target of President Donald Trump
and his allies who have accused the search giant of “bias” and silencing
conservative voices, claims denied by the Silicon Valley firm.
BSS/AFP/MSY/0910 hrs