Missouri Launches Probe Into Google's Business Practices -- Update
November 13 2017 - 2:57PM
Dow Jones News
By Jack Nicas
Google is facing a new front in its regulatory battles after
Missouri's attorney general launched a broad investigation into
whether the internet giant's business practices violate the state's
consumer-protection and antitrust laws.
Missouri Attorney General Josh Hawley on Monday said he issued
an investigative subpoena to probe Google's collection of user
data, its use of other sites' content, and its alleged manipulation
of search results to favor its own services.
Google, a unit of Alphabet Inc., has so far skirted the scrutiny
in the U.S. that it has faced in Europe, where regulators levied a
record $2.7 billion fine against Google in June for allegedly
favoring its shopping ads in its search results. Mr. Hawley said
his investigation was in part prompted by the European fine. "We're
concerned they're engaged in a similar pattern of behavior in the
United States," he told reporters.
Google said in a statement: "We have not yet received the
subpoena, however, we have strong privacy protections in place for
our users and continue to operate in a highly competitive and
dynamic environment." It has disputed European regulators'
charges.
The Federal Trade Commission ended a nearly two-year antitrust
investigation into Google in early 2013 after the company agreed to
make some changes to its business practices for five years -- a
period that is about to expire. In the U.S., some federal lawmakers
such as Sen. Al Franken (D., Minn.) have called for new probes into
the company's power.
Mr. Hawley said the FTC went too easy on Google. "That seemed to
me to be short even of a slap on the wrist. Now this is why I think
there needs to be a fuller inquiry," he said in an interview. "I
don't see a lot of action coming out of Washington. I don't see a
lot of action coming out of the FTC....So I think that it's
important that some law enforcement agency actually steps
forward."
The FTC didn't immediately respond to a request for comment.
Mr. Hawley, a 37-year-old Republican lawyer who was elected as
Missouri's attorney general last year, announced last month that he
is running for Democratic U.S. Sen. Claire McCaskill's seat in
2018.
Some critics and competitors of Google see state attorneys
general as potentially the most likely route to regulatory action
in the U.S.
Mississippi Attorney General Jim Hood has sued Google several
times, including in January over its collection and use of data on
Mississippi public-school students who use its services. Mr. Hood
is looking closely at other aspects of Google's business and
considering further action, a person familiar with the matter
said.
Utah Attorney General Sean Reyes last year called on the FTC to
reopen an antitrust investigation into Google. This year, when Mr.
Reyes was a candidate for FTC chairman, Google deployed Republican
lobbyists to dissuade Trump administration officials from naming
him to the post, according to people familiar with the matter.
Since the end of the FTC investigation, European Union officials
have been the most aggressive regulators of the internet giant.
Aside from the record fine in June, European regulators have four
separate probes into Google, including one that examines whether
the company uses its dominant Android smartphone software to force
phone makers to favor its services on their devices.
Google has disputed antitrust allegations and said the internet
remains a competitive marketplace. The company says it has several
webpages that shows users what data it has on them and enables them
to delete data and opt out of future collection.
Write to Jack Nicas at jack.nicas@wsj.com
(END) Dow Jones Newswires
November 13, 2017 14:42 ET (19:42 GMT)
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