FTC Defends Google Decision

The FTC defended its decision to let Google carry on with its anti-trust-like antics, while other regulations in civilized nations are planning to put the boot in.

The US Federal Trade Commission reached a settlement with Google which really did little to stop the company using its dominance to push down search results from its competitors. The move attracted considerable criticism because it followed a letter from US senators to go easy on the search engine because it was good for US jobs.  We guess they mean the jobs of US senators who Google paid campaign contributions.

Google promised to change the ways it presents some search results and runs search advertising, but was exonerated of the results bias claims. Rivals including Yelp and Microsoft claimed that Google had favored its own product results over those of its competitors and called for the anti-trust case. What makes the case look more suspect is that the EU is less frightened of actually fining Google or forcing it to behave. Indeed indications from Brussels are that it has not only agreed with the rival’s complaints but will do something about it if Google does not pull finger.

But FTC chairman Jon Leibowitz told Talking Points Memo that the agency’s decision was legally sound and would be beneficial to competition and consumers. Under facts we found, all five of us, from liberal Democrat to conservative Republican, agreed that the evidence militated against an anti-trust case,” Leibowitz told TPM.

The fact that we managed to have both Google and Google’s rivals unhappy, in an odd way that’s maybe unique to Washington, that puts us in the right place substantively, he claimed. When asked if Google’s $25 million lobbying budget for the duration FTC’s investigation helped, he said that lobbying makes the companies feel good and lobbyists feel good.

“At the end of the day, whether you want to say lobbying had any influence, or cancelled itself out because there was lobbying on both sides, if you’re going to do what lobbyists want you to do in a regulatory agency, you’re not doing your job.”

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at&t Vows To Continue Quest

AT&T Inc plans to forge ahead with its deal to acquire Deutsche Telekom’s U.S. wireless unit despite regulatory opposition, and it has the financial resources to close the acquisition quickly, a top executive said on Wednesday.

“We continue to move forward with our efforts to complete the T-Mobile transaction…and we will continue to pursue the sale,” AT&T Chief Financial Officer John Stephens said at the UBS media conference in New York.

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Sprint Sues To Stop AT&T-T-Mobile merger

Sprint on Tuesday announced it has initiated a lawsuit against AT&T and Deutsche Telekom to block the two companies from merging “as a violation of Section 7 of the Clayton Act.” Section 7 of the Clayton Antitrust Act bars any person from acquiring “the whole or any part of the stock or other share capital” that would “substantially … lessen competition, or to tend to create a monopoly.” In its suit, Sprint argues that the proposed merger would violate this act because it would lead to AT&T and Verizon’s controlling 75% of the wireless market while taking in 90% of the profits.

Sprint’s antitrust suit comes less than a week after the U.S. Department of Justice filed an antitrust suit against the merger with the U.S. District Court for the District of Columbia. In its suit, the DOJ similarly argued that the proposed merger would significantly damage competition in the wireless industry, especially since T-Mobile has historically offered low-cost wireless voice and data services for customers. The DOJ also contended that any efficiencies gained by combining AT&T and T-Mobile spectrum would not be enough to offset the damage done to U.S. consumers by further consolidation of the wireless industry.

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States Subpoena Sprint

Sprint Nextel has been subpoenaed by nine states in connection with antitrust reviews of AT&T’s proposed $39 billion purchase of T-Mobile USA, according to information Sprint posted on the Federal Communications Commission (FCC) website.

In a letter dated June 28 to FCC, Sprint said it had received subpoenas and civil investigation demands from attorneys general in the states of Arizona, Florida, Hawaii, Illinois, Minnesota, New York, Pennsylvania, Texas and Washington, as well as from the Antitrust Division of the U.S. Department of Justice.

Sprint, the No.3 U.S. mobile service, is opposing AT&T’s proposed $39 billion purchase of No.4 U.S. mobile service T-Mobile USA, a Deutsche Telekom AG unit, on the grounds it will give too much competitive power to one company.

Sprint said in its letter that the states have asked the company to provide all the materials it had submitted to FCC regarding AT&T’s deal.

Meanwhile, an AT&T spokesman told Bloomberg that his company had also received subpoenas from the same nine states regarding its proposed T-Mobile transaction.

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Google+ Is A No Go In China

The United States biggest creditor (China) has taken steps to stop Google+ right after it was debuted to the world yesterday. While some people may claim it is all part of a communist plot to crack down on dissent; this time it may not be the case this go round.

For those of you, who are late to the game, be advised that Google+ is the firm that tried to introduce social networking to China. Again social networking is thought to be a threat for oppressive governments because it allows its populations to share information and gossip. Therefore, it would seem apparent that the Chinese might be a little cautious about allowing a social networking environment in the country.

That said, it was revealed by Microsoft that cloud based operations in other countries, which are run by American companies fall under the jurisdiction of the US Patriot Act. Therefore, we (US) could technically spy on anyone in China with the proper paperwork such as a court order and the company is required is to hand over information.

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NY To Investigate AT&T’s T-Mobile Acquisition

The state of New York  has indicated that it will investigate AT&T’s proposed take over of T-Mobile USA for anti-competitive effects, including possible increases in mobile broadband costs for New York residents and businesses, Attorney General Eric Schneiderman said.

New York is the first state that has committed itself to probing the $39 billion deal, which was announced on March 20 but is expected to take 12 months to close. At their current sizes, the combined telecom companies would have 130 million subscribers, dwarfing the next-biggest operator, Verizon Wireless, with 93 million. In a press release on Tuesday, the attorney general’s office raised the possibility of Verizon responding with an acquisition of Sprint Nextel, which has about 58 million subscribers.

“The proposed merger could start a process of consolidation that would lead to two firms -AT&T and Verizon – controlling nearly 80% of wireless subscribers nationwide,” Schneiderman stated.

Schneiderman said mobile service has changed from a luxury to a basic necessity and T-Mobile currently is a low-cost option for many New York residents. People in some areas, including Albany, Rochester, Buffalo and Syracuse, already have limited wireless choices, he said.

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