It started out as a seemingly altruistic enterprise: develop a search engine that has no other purpose than to direct consumers – without bias – to websites where they can find the information they seek. And it proved wildly successful, so much so that 65-70 percent of all US Internet searches on computers, and 95 percent of all Internet searches on mobile devices, use Google.
But now it appears that success may have gone to Google’s head. Charges are being leveled that Google is now stacking the results in favor of its own websites and businesses.
So is Google merely serving consumers or is it threatening competition? That was the topic of a hearing last month convened by the Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights.
The problem is that Google is no longer just a search engine. As its popularity and advertising revenue grew, the company began to invest heavily in other businesses. At last count, Goggle has acquired 103 companies, most notably Motorola Mobility (for $12.5 billion) and Zagat (for $125 million).
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The Senate hearing, designed to explore that question, was little more than window dressing, giving Senators from both sides of the aisle an opportunity to advise Google about fairer ways to do business. Google Executive Chairman Eric Schmidt, who tried unsuccessful to avoid testifying, apologized for Google’s “mistakes”, but offered no remedies to the problem, instead insisting that Google’s current practices are sufficient to prevent it from becoming “evil” as its power continues to grow. The suggestion that an outside panel review changes Google makes to rankings in its search engine was predictably rejected by Google’s lawyer, Susan Creighton.
While hearing observers agreed that Schmidt acquitted himself well, the issue of Google’s possible violation of antitrust laws is far from resolved. The Federal Trade Commission’s antitrust probe of Google, begun back in June, remains ongoing.
Google’s response? Hire more lobbyists to blanket D.C. with pro-Google banter. Well, at least someone can be sure of a job in this uncertain economy.