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FTC Overreaching And A Commentary Bitch-Slap

Googleopoly

Late Friday afternoon, several stories appeared quoting unnamed sources that the Federal Trade Commission (FTC) has received a staff memo recommending an antitrust prosecution of Google. Now, in a letter just days ago to FTC Chairman Jon Leibowitz, Colorado Rep. Jared Polis — founder of bluemountain.com and ProFlowers.com — counseled that an FTC monopolization case against Google could lead to legislative blowback.

I believe that application of antitrust against Google would be a woefully misguided step that would threaten the very integrity of our antitrust system, and could ultimately lead to congressional action resulting in a reduction in the ability of the FTC to enforce critical antitrust protections in industries where markets are being distorted by monopolies or oligopolies.

Google Antitrust Action Could Cost FTC Power, Dem Warns | Law360. That’s consistent with what I suggested in my five-part series Why An FTC Case Against Google Is A Really Bad Idea, but of course goes even further as my legal analysis did not address potential political or legislative reaction to a formal FTC complaint.

Meanwhile, commentators are whacking each other silly.  Sam Gustin observed in TimeBusiness that “Microsoft and its anti-Google allies have spent untold millions waging an overt and covert campaign designed to persuade regulators to hobble the search leader. Perhaps if these companies spent a little less time complaining and a little more time innovating, they’d have a better chance of competing in the marketplace.” In response, John Paczkowski at AllThingsDigital noted the Polis letter’s “fortuitous timing” and implied that it “seems a bit odd” for a junior legislator to threaten a sitting FTC chairman, concluding that “maybe we should all wait and see the FTC’s evidence and the merits of its case — if there is one — before threatening to limit the agency’s authority.”

It is clear to any objective observer that there is a case in the works and that the FTC, which on background leaked that four of five commissioners are already on board, sent a trial balloon out through the press last week. Paczkowski is naive if he believes the timing of the stories last Friday was also not “fortuitous” or that the “merits” of the FTC’s case may not properly be a matter of policy and political debate. Having witnessed this same pas de deux for years in connection with United States v. Microsoft Corp., it’s just business as usual in Washington, DC. That may not make it right or courteous, but it does make it completely unexceptional.

 

Democracy In Secret Is Revolting

hearing_room

Hearing Room

It is hard to understand how “conference reports” from Congress on pending legislation can have fallen from 200 per year to just 11 over the past three decades. Secret Bill Writing On the Rise [Washington Post]. But it indicates, sadly, that laws in America are increasingly being made in back rooms, not the public forums our system of politics has traditionally used. That may be mere window-dressing, but it is IMPORTANT symbolically, in my view.

In a letter to C-SPAN Chairman Brian Lamb, House Republican leader John Boehner wrote, “Unfortunately, the president, Speaker (Nancy) Pelosi and Senate Majority Leader (Harry) Reid now intend to shut out the American people at the most critical hour by skipping a bipartisan conference committee and hammering out a final health care bill in secret.”  The complaint sounded a lot like one nine years ago, when Sen. Kent Conrad, D-N.D., said Republicans “locked out the Democrats from the conference committee” meeting on the budget. “We were invited to the first meeting and told we would not be invited back, that the Republican majority was going to write this budget all on their own, which they have done. So much for bipartisanship.”