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September 2012 Policy Study, Number 12-10


The Federal Trade Commission’s Investigation of Google





[1] “Google’s Economic Impact/United States, 2010,” p. 24,< external_content/untrusted_dlcp/ economicimpact2010.pdf> See also Google’s note on methodology in this report: “Note: The total value that U.S. Google advertisers and website publishers received in 2010 is the sum of the economic impact of Google Search, AdWords and AdSense. The value of Google Search and AdWords for businesses is the profit they receive from clicks on search results and ads minus their cost of advertising, estimated as $8 profit for every $1 spent. This formulation is derived from two studies about the dynamics of online search and advertising, Hal Varian’s ‘Online Ad Auctions,’ (American Economic Review, May 2009) and Bernard Jansen and Amanda Spink, ‘Investigating customer click through behaviour with integrated sponsored and nonsponsored results,’ (International Journal of Internet Marketing and Advertising, 2009). The economic impact of AdSense is the estimated amount Google paid to website publishers in 2010 for placing our ads next to their content. Please note that these estimates do not allow for perfect reconciliation with Google’s GAAP–reported revenue. For more information about methodology, visit:”

[2] “IBOPE Zogby Interactive Survey of Adults - 3/2/12 - 3/5/12,” <>.
[3] As Dr. Richard E. Wagner put it in “Antitrust Zeal Over High Tech Hurts Consumers,” “…most antitrust actions are initiated by complaints from losing competitors. IBM complains about Microsoft. Sun complains about Microsoft. And so it goes; one losing competitor after another complains about a more successful company.” OF PUBLIC INTEREST, Public Interest Institute, December 1999, Vol. 1, #5, p. 1 <> accessed September 18, 2012.
[4] Amir Efrati and Thomas Catan, “Google Rivals are Readying An Antitrust Assault in D.C.,” The Wall Street Journal, September 21, 2011, <>.
[5] Indeed, as Amy K. Frantz so aptly put it in the title of her INSTITUTE BRIEF, “Government Regulation Stifles Internet Development!” She goes on to say, “The quick development of Internet technology has been due, in part, to relatively little government regulation...” Public Interest Institute, December 1999, Vol. 6, #34, p. 1, <> accessed September 19, 2012.
[6] Daniel A. Crane, “Search Neutrality as an Antitrust Principle,” Public Law and Legal Theory Working Paper Series, Working Paper No. 256, Empirical Legal Studies Center, Working Paper No. 11-016, November 18, 2011, <>.
[7] Verizon Communications Inc. v. Law Offices of Curtis V. Trinko, LLP. 540 U.S. 398 (2004).
[8] MCI Communications Corp. v. AT&T, 708 F.2d 1081, 1132-33 (7th Cir. 1983).
[9] “FTC Closes its Investigation of Google AdMob Deal,” Federal Trade Commission Press Release, May 21, 2010, <>.
[10] “In a dynamic world, competition requires companies to create new technology and new products and services their customers desire.” Amy K. Frantz, “Technology Advances Have Redefined the Meaning of Competition in the Telecom Industry,” INSTITUTE BRIEF, Public Interest Institute, September 2005, Vol. 12, # 26, p. 2, <> accessed September 19, 2012.
[11] Anthony West, “Will Facebook Enter The Search Market to Beat Google?,”, January 30, 2012, <>.
[12] Farhad Manjoo, “The Great Tech War of 2012,” Fast Company, October 19, 2011, <>.
[13] “Competition is an active process of trying to create product offerings and forms of commercial enterprise that will result in the highest value of service to customers.” Richard E. Wagner, “Verizon and MCI: A Merger that Promotes Competition,” POLICY STUDY, Public Interest Institute, August 2005, No. 05-1, p. 3, <> accessed September 19, 2012.
[14] Efrati and Catan.
[15] Rachel Bull, “An interview with Jon Leibowitz,” Global Competition Review, May 26, 2011, <> and Geoffrey Manne, “What’s Really Motivating the Pursuit of Google?,” Main Justice, June 13, 2011, <>.
[16] Manne.
[17] Ibid.
[18] “Tremendous change has occurred in the last twenty years, and especially the last ten years in the areas of computers, the internet, mobile devices, and software applications. The next few years promise to have even more rapid change, so long as political roadblocks are not erected . . .” Dr. Donald P. Racheter, “The Benefits of Broadband: Connecting Iowa to the 21st Century Economy,” POLI CY STUDY, Public Interest Institute, August 2011, No. 11-5, p. 3, <> accessed September 19, 2012.
[19] Marvin Ammori and Luke Pelican, “Proposed Remedies for Search Bias: ‘Search Neutrality’ and Other Proposals in the Google Inquiry,” Journal of Internet Law, May 14, 2012.
[20] Eugene Volokh, “First Amendment Protection for Search Engine Search Results,” April 20, 2012, Academic Affiliate, Mayer Brown LLP.
[21] “IBOPE Zogby Interactive Survey of Adults - 3/2/12 - 3/5/12.”
[22] “Our future is too important to leave to the regulators and politicians – let the free-market work to bring us maximum benefits!” Racheter, p. 17.
[23] “Just because someone is appointed to a regulatory commission does not mean they are immune to blandishments from special interests.” Ibid.




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