U.S. Justice Department prepares Google antitrust probe: sources

[June 01, 2019]   By Diane Bartz

(Reuters) - The U.S. Justice Department is preparing an investigation of Alphabet Inc's Google to determine whether the tech giant broke antitrust law in operating its sprawling online businesses, two sources familiar with the matter said.

Officials from the Justice Department's Antitrust Division and Federal Trade Commission, which both enforce antitrust law, met in recent weeks to give Justice jurisdiction over Google, said the sources, who sought anonymity because they were not authorized to speak on the record.

The potential investigation represents the latest attack on a tech company by the administration of U.S. President Donald Trump, who has accused social media companies and Google of suppressing conservative voices on their platforms online.

One source said the potential investigation, first reported by the Wall Street Journal, focused on accusations that Google gave preference to its own businesses in searches.

A spokesman for the Justice Department said he could not confirm or deny that an investigation was being considered. Google declined comment.

Early in 2013, the FTC closed a long-running investigation of Google, giving it a slap on the wrist. Under FTC pressure, Google agreed to end the practice of "scraping" reviews and other data from rivals’ websites for its own products, and to let advertisers export data to independently assess campaigns.

Google's search, YouTube, reviews, maps and other businesses, which are largely free to consumers but financed through advertising, have catapulted it from a start-up to one of the world's richest companies in just two decades.

Along the way, it has made enemies in both the tech world, who have complained to law enforcers about its market dominance, and in Washington, where lawmakers have complained about issues from its alleged political bias to its plans for China.

An illuminated Google logo is seen inside an office building in Zurich, Switzerland December 5, 2018. REUTERS/Arnd Wiegmann

TripAdvisor chief executive and co-founder Stephen Kaufer welcomed news that Google could face Justice Department antitrust scrutiny.

"TripAdvisor remains concerned about Google’s practices in the United States, the EU and throughout the world," Kaufer said in a statement.

"For the good of consumers and competition on the internet, we welcome any renewed interest by U.S. regulators into Google's anticompetitive behavior."

Democratic presidential candidate Elizabeth Warren has pushed for action to break up Google, as well as other big tech companies. Senator Kamala Harris, who is also running for president on the Democratic ticket, has agreed.

"This is very big news, and overdue," Sen. Josh Hawley, a Republican Google critic, said on Twitter, regarding the investigation.

Google has faced a plethora of overseas probes.

Europe's competition authority, for one, hit Google with a 2.4-billion-euro ($2.7-billion) EU fine two years ago for unfairly promoting its own comparison shopping service.

Google has since offered to allow competitors to bid for advertising space at the top of a search page, giving them the chance to compete on equal terms.

(Reporting by Paresh Dave in California, Diane Bartz in Washington and Kanishka Singh in Bengaluru; Editing by Chris Sanders and Clarence Fernandez)

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