Feds' super lawyer should sue over Google-Yahoo search deal
- TAGS:anti-trust suite, Google, Yahoo
- IT TOPICS:Applications, Government & Regulation, Internet, Networking, Windows
If I were any of the top execs at Google, I wouldn't be particularly happy today. The U.S. Justice Department has just hired Sanford Litvack, one of the country's top anti-trust lawyers, to head a potential anti-trust suit against Google.
Litvak was the U.S. Justice Department's anti-trust chief under President Jimmy Carter, and a former Walt Disney Co. vice chairman. Litvak also headed a commission that Congress created in 2006 to mull changes to U.S. antitrust law.
The Wall Street Journal reports that the Justice Department is considering an anti-trust suit against Google because of its search advertising deal with Yahoo. According to the Journal, Justice Department lawyers have for the past several weeks been "deposing witnesses and issuing subpoenas for documents to support a challenge to the deal."
More disturbing for Google is that the investigation may expand beyond the Yahoo deal, and extend to Google's overall conduct with regard to search advertising.
Just because Litvack has been hired doesn't mean a suit will go forward. But it's certainly a major sign that one is in the offing. The Journal reports:
It is relatively rare for the Justice Department to hire a special counsel from outside the department. David Boies was brought in as a special counsel to build the landmark antitrust case against Microsoft in 1998. Stephen Axinn, another well-known New York litigator, was hired to challenge WorldCom Inc.'s proposed buyout of Sprint Corp. The companies abandoned that transaction in 2000 after the department and Mr. Axinn challenged the deal.
Disturbing for Google as well is that the Association of National Advertisers sent a letter to the Justice Department complaining about the Yahoo deal, and asking that it be blocked the Journal says.
The advertisers are right here -- the Justice Department should stop the deal. It would give Google what would in essence amount to a near-monopoly in search advertising, which is a bad thing for everyone except Google and Yahoo.
Years ago, the Justice Department targeted Microsoft, and it was right to do it. This time around, it has Google in its cross-hairs, and it should pull the trigger.
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