Report: DOJ was hours from filing Google suit
It is widely known that Google pulled the plug on the search advertising deal with Yahoo only because it appeared that it would face a regulatory challenge. However, it emerged on Wednesday just how close the company came to facing an antitrust suit from the U.S. Department of Justice.
Sandy Litvack, the lawyer hired by the Justice Department to look into the search advertising pact between Google and Yahoo, said in an interview with American Lawyer's AmLaw Daily that the government had a suit ready and was just three hours away from filing it.
"We were going to file the complaint at a certain time during the day," Litvack said in the interview. "We told them we were going to file the complaint at that time of day. Three hours before, they told us they were abandoning the agreement."
According to Litvack, the government would have sought an injunction to stop Google from serving up search ads for Yahoo, alleging that Google was violating two sections of the Sherman antitrust act.
At the end of the interview, Litvack said he's happy to be heading back to his law firm, but says he regretted not getting to take part in the legal battle.
"Of course I was looking forward to it," Litvack said. "We felt pretty good about it, we felt pretty confident. Yeah, I would have liked to have done it."
During her years at CNET News, Ina Fried has changed beats several times, changed genders once, and covered both of the Pirates of Silicon Valley. These days, most of her attention is focused on Microsoft. E-mail Ina.
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KieranMullen
http://360oregon.com
The DOJ felt that if a deal had gone through between Google and Yahoo that a "trust" would have been formed in the internet advertising agency. A trust being a business entity formed with intent to monopolize business, to restrain trade, or to fix prices.
Forming a trust is illegal according to United States Anti-Trust laws. The enforcement of these laws falls to the Department of Justice. Since the deal had not gone through, legally speaking Google had not done anything illegal yet and could not be prosecuted under these laws. The only option the DOJ had was to file a law suit seeking to block the formation of the trust. If the DOJ is aware of the potential of a trust forming that has not yet formed they are to attempt to stop the trust from forming. The DOJ did their job in the appropriate manner in which they are to do it.
I for one an very happy to see this happen.
Oh yeah, I can just see it now: "This just in! Google to Microsoft: Go Chrome...or else!"
Though here's something I'd like to see: Windows users forcing Microsoft to remove features out of the operating system that we have been made to pay for but DON'T WANT, NEED OR USE...like IE, perhaps? Or maybe UAC? (say what you will, but UAC is like your spouse putting padlocks on every door, drawer and cabinet in the house and then making you get permission from them before you can get in the fridge. Or the bathroom. Or anything.)
Mark Heinemann