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October 16, 2012

FTC staff supporting antitrust suit against Google: report

The 100-plus-page memo has been delivered to FTC's five commissioners

By CBR Staff Writer

The US Federal Trade Commission investigators are said to be distributing a memo that recomends to sue the search engine giant Google for exploiting its domination in internet search, contravening the antitrust laws.

According to report from Bloomberg, the 100-plus-page memo has been delivered to FTC’s five commissioners, which is still decision pending whether or not to sue.

Sources told the newswire that the agency is also considering a lawsuit against Google for purportedly abusing patent protections to obstruct smartphones developed by rivals.

Further, a congressman has warned the agency not to do anything to harm Google’s business and could make Congress to restrict the authority of the agency.

Representative Jared Polis said that application of anti-trust against Google would be a misguided step that would threaten the very integrity of our anti-trust system, and could ultimately lead to Congressional action resulting in a reduction in the ability of the FTC to enforcecritical anti-trust protections in industries where markets are being distorted by monopolies or oligopolies.

"Competition is only a click away, and there are no barriers to competition; if I created a better search algorithm I could set up a server in my garage and compete globally with Google," Polis said.

"To even discuss applying antitrust in this kind of hyper-competitive environment defines all logic and the very underpinnings of antitrust law itself."

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Reports also reveal that the FTC is close to the conclusion of an extensive antitrust investigation into Google’s business practices and the investigators are planning to sue Google.

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