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Economics and the FTC’s Google Investigation

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  • Michael Salinger
  • Robert Levinson

Abstract

We explain the issues in the Federal Trade Commission (FTC’s) antitrust investigation into whether Google’s use of “Universal” search results violated the antitrust laws and assess the role for economics in the FTC’s decision to close the investigation. We argue that the presence of the Bureau of Economics infuses the FTC with an economic perspective that helped it recognize that “Universals” were a product innovation that improved search rather than a form of leveraging. Labeling them as “anticompetitive” would have confused protecting competition with protecting competitors. Copyright Springer Science+Business Media New York 2015

Suggested Citation

  • Michael Salinger & Robert Levinson, 2015. "Economics and the FTC’s Google Investigation," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 46(1), pages 25-57, February.
    • Handle: RePEc:kap:revind:v:46:y:2015:i:1:p:25-57
    DOI: 10.1007/s11151-014-9434-z
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    References listed on IDEAS

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    1. Howard Shelanski & Joseph Farrell & Daniel Hanner & Christopher Metcalf & Mary Sullivan & Brett Wendling, 2012. "Economics at the FTC: Drug and PBM Mergers and Drip Pricing," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 41(4), pages 303-319, December.
    2. Joseph Farrell & David Balan & Keith Brand & Brett Wendling, 2011. "Economics at the FTC: Hospital Mergers, Authorized Generic Drugs, and Consumer Credit Markets," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 39(4), pages 271-296, December.
    3. David Evans & Richard Schmalensee, 2007. "The Industrial Organization of Markets with Two-Sided Platforms," CPI Journal, Competition Policy International, vol. 3.
    4. Werden, G.J., 1992. "The History of Antitrust Market Delineation," Papers 92-8, U.S. Department of Justice - Antitrust Division.
    5. Julie Carlson & Leemore Dafny & Beth Freeborn & Pauline Ippolito & Brett Wendling, 2013. "Economics at the FTC: Physician Acquisitions, Standard Essential Patents, and Accuracy of Credit Reporting," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 43(4), pages 303-326, December.
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