Antitrust

6 June 2012

Joaquín Almunia
European Commission, Vice President for Competition Policy
Brussels, Belgium

Dear Joaquín Almunia,

Thank you for your May 21 letter sharing your Google antitrust concerns, and for your offer of discussions to avoid "adversarial proceedings."

In this dispute among equals, we would like to counter with Google's concerns about your antitrust investigation.

First, no matter how many times we explain our business or how slowly we talk, your investigators can't seem to grasp the expanse of our algorithmic genius or the fact that our engineers are higher life forms not bound by the laws of man or nature. Going forward we will only talk to fellow gifted engineers.

Second, the velocity of Google's innovation and the fast-moving nature of these markets mean antitrust authorities can't keep up with us. By the time the EU figures out that we have monopolized one market, we will have monopolized many more. Surrender while you still can. Resistance is futile. Get over it.

Kudos to the WSJ for publishing my Letter to the Editor challenging the central assumption of the WSJ editorial questioning antitrust action against Google because consumers benefit from Google's free search. My letter pointed out a false assumption begets a false analogy and an incorrect conclusion.

The text of my letter follows:

"The conclusions of The Competition Versus Google editorial rest on the false market assumption that Google search users are customers when they are not.  Consumers using Google search pay Google nothing. Consumers are the product Google sells to advertisers and publishers. This false market assumption begets a false market analogy between the Google and Microsoft antitrust cases, because unlike Google, Microsoft's consumers were also Microsoft’s customers. Free market competition and antitrust law excel at serving customers’ market interests, which may or may not be consumers' interests. Incorrectly conflating these different interests confuses the real market forces and problems at work here."

FOR IMMEDIATE RELEASE May 24, 2012

Contact: Scott Cleland 703-217-2407

Verizon-Cable's Market-based Spectrum Transaction Promotes Competition

Promoting secondary market for spectrum & new forms of competition is in the public interest

WASHINGTON D.C. – In response to Senate Antitrust Subcommittee Chairman Kohl's letter to the DOJ and the FCC on the Verizon-Cable transaction, the following quotes may be attributed to Scott Cleland, Chairman of NetCompetition.org:

This week the EU issued a formal antitrust ultimatum to Google: recommend acceptable remedies or face prosecution for abusing monopoly power. This action has sweeping ramifications and enables one to make several educated conclusions.

I. Ten Conclusions Summary

1. EU has called Google's bluff on being cooperative.

2. Google is busted.

3. "Preferential treatment" is 99% of this EU-Google fight.

4. "Preferential treatment" is Google's business strategy.

5. As a self-declared publisher, Google competes with the web.

Please read my latest Daily Caller Op-ed: "The FCC's Public Interest Test Problem" here.

Part 1 of my Obsolete Communications Law series: "Obsolete communications law stifles innovation, hurts consumers" -- is here.

Google's latest claimed antitrust get-out-of-jail-free-card is that Google is effectively immune from antitrust prosecution because it has a constitutional free speech right to free speech to rank and present its search results any way it wants, per a new Google-sponsored white paper by UCLA Law Professor Eugene Volokh. This effort is much more of a political argument and PR wish than a legal or antitrust argument, because neither the right to free speech nor any other right in the Constitution's Bill of Rights confers immunity from the rule of law foundation on which the rest of the U.S. Constitution rests. There are many reasons to be skeptical of Google's blanket claims of antitrust immunity via its free speech rights.

First, anybody that considers the many forms of illegal speech that are unprotected by the First Amendment: perjury, libel, slander, misrepresentation, lying under oath, fraud, deceptive practices, falsifying documents, collusion, conspiracy, impersonating a police officer, stealing, vandalism, graffiti, inciting a riot, etc., will take Google's imagined blanket immunity from antitrust laws on free speech grounds with a grain of salt. Google exaggerates its "free speech" rights to protection from antitrust, just like it exaggerates its "fair use" rights to take others' property without permission.

FOR IMMEDIATE RELEASE

May 14, 2012

Contact: Scott Cleland 703-217-2407

Alliance for Broadband Competition Really Seeks Broadband Regulation

Verizon-Cable spectrum transaction promotes competition & the public interest

WASHINGTON D.C. – In response to the new "Alliance for Broadband Competition" opposition to the Verizon-Cable spectrum transaction, the following quotes may be attributed to Scott Cleland, Chairman of NetCompetition.org:

The FCC's Google Street View wiretapping investigation proved that Google's public representations it was just a mistake one rogue engineer -- that the FTC and foreign law enforcement relied upon to close their investigations -- were untrue. Going forward, law enforcement must remember the old adage: "fool me once, shame on you; fool me twice, shame on me."

I. Top Ten List of Untrue Google stories

Google's poor and defiant track record in respecting government agreements and settlements is likely one of the reasons the FTC hired an undefeated former Federal prosecutor and litigator to lead their Google antitrust probe and potential litigation against Google. The EU and the FTC are naturally exceptionally skeptical about negotiating an antitrust settlement with Google, given the substantial evidence that shows Google is consistently less-than-trustworthy in abiding by its agreements with Governments.

Specifically, the evidence shows that Google has not abided by either of its privacy agreements with the FTC concerning Street-View WiSpy or Google-Buzz, nor has Google fully-abided by its criminal Non-Prosecution-Agreement with the DOJ concerning its advertising of illegal prescription drug imports. In addition, Google attempted to broadly game the justice system in negotiating a Google Book Settlement that would have rewarded it with a partial monopoly for its mass copyright infringement.

Compare Google's law enforcement record here with Google's public representations below to determine for yourself if they match up.

• "We're a law abiding company." Google Executive Chairman Eric Schmidt, June 28, 2011, in The Daily Mail.
• "Google respects the law. We do not steal." Google Executive Chairman Eric Schmidt, December 16, 2011, in the French paper Libération.
• "We have always wanted Google to be a company that is deserving of great love." Google CEO Larry Page, in his 2012 Update from the CEO.
• Google's Corporate Credo: "Don't be evil. ...This is an important aspect of our culture and is broadly shared within the company." per Larry Page and Sergey Brin in Google's Founders IPO letter in 2004.