States unveil bipartisan antitrust probe of Google

Image credit: Wikipedia.

Image credit: Wikipedia.

Tech giant Google faces a sweeping bipartisan antitrust probe by state attorney generals, an investigation announced on Sept. 9 with an initial focus on online advertising.

“Google is expected to rake in more than $48 billion in U.S. digital ad revenue this year, far rivaling its peers, while capturing 75 percent of all spending on U.S. search ads, according to eMarketer,” The Washington Post reports.

The probe is supported by 50 U.S. states and territories, excluding Alabama and California, home of Silicon Valley.

Texas Attorney General Ken Paxton said Google “dominates all aspects of advertising on the Internet and searching on the Internet,” though he clarified that states are launching an investigation and not a lawsuit.

“The probe marks the latest regulatory headache for Google and the rest of Silicon Valley, which have faced growing criticism — and widening state and federal scrutiny — into whether they’ve grown too big and powerful, undermining rivals and resulting in costlier or worse service for web users,” The Post reports.

Federal regulators have decided against assessing major penalties against the company, including breaking it up, but “The European Union has issued the company $9 billion in competition-related fines over the past three years,” The Post reports.

Google Wins Appeal Decision On Scanning Copyrighted Books

Google has won an appeals decision on its controversial book-scanning practice. New York based U.S. Circuit Court Judge Denny Chin ruled that the practice is “transformative” and does not violate copyright. The Google case hinges on not making the books totally available online. Rather, it allows the material to be searched and provides “snippets.” Thus, the argument goes, the practice is protected by the same “fair use” provisions that allow a book reviewer to use snippets in their reports.
 
NPR’s report on the decision notes that “… Google began scanning books back in 2004. Many of the works were by living authors. The Authors Guild took legal action against Google, demanding $750 for each book it scanned. Google estimated that it would have cost the company $3 billion.” Google also predicts the service could make older and out-of-print books more relevant.
 
An appeal to the U.S. Supreme court is promised by the authors and others seeking to protect their work. They argue that, because Google sells ads next to those “snippets” of books, it profits from their work without compensating the copyright holders. See the NPR report here: Judge: Google’s Book Copying Doesn’t Violate Copyright Law