Google emerges as target of a new state attorneys general antitrust probe

More than half of the nation’s state attorneys general are readying an investigation into Google for potential antitrust violations, scheduled to be announced next week, marking a major escalation in U.S. regulators’ efforts to probe Silicon Valley’s largest companies.

A smaller group of these state officials, representing the broader coalition, is expected to unveil the investigation at a Sept. 9 news conference in Washington, according to three people familiar with the matter who were not authorized to discuss a law enforcement proceeding on the record, cautioning the plans could change.

It is unclear whether some or all of the attorneys general also plan to open or announce additional probes into other tech giants, including Amazon and Facebook, which have faced similar U.S. antitrust scrutiny.

Over the past year, regulators around the country have grown increasingly wary regarding the power wielded by Silicon Valley, questioning whether the industry’s access to vast amounts of proprietary data—and deep pockets—allow companies to gobble up rivals and maintain their dominance to the detriment of consumers. Two federal antitrust agencies have opened probes targeting the industry broadly, while lawmakers in Congress have grilled executives from Amazon, Apple, Facebook and Google about the business practices. (Amazon founder Jeff Bezos owns The Washington Post.)

Outside of the nation’s capital, however, state officials also have started questioning the growing influence of big tech. Attorneys general in multiple states have threatened that competition probes could be on the horizon, The Post first reported in March, and states such as Louisiana and Mississippi have sharply criticized Google for its handling of users’ personal information and its algorithms for surfacing search results. Those states did not respond to requests for comment.

Texas officials have raised similar concerns. They have also said that Google may be violating state consumer-protection laws if political bias at Google resulted in the censorship of conservative viewpoints. A spokesman for the attorney general there also did not respond to a request for comment.

Over the summer, some state attorneys general met privately with officials from the Justice Department, which announced its own broad review into big tech, to discuss their antitrust concerns. The agency’s antitrust leader, Makan Delrahim, later said at a conference in August that the federal government is coordinating with state leaders, which he numbered at more than a dozen, but declined to offer further details about the agency’s plans.

It is unclear whether the DOJ will join the states at the event, and a spokesman did not immediately respond to a request for comment.

“Google’s services help people every day, create more choice for consumers, and support thousands of jobs and small businesses across the country,” spokesman Jose Castaneda said in a statement. “We continue to work constructively with regulators, including attorneys general, in answering questions about our business and the dynamic technology sector.”

The states’ looming antitrust investigation of Google threatens to saddle the company with years of regulatory scrutiny. The federal government has the most powerful tools at its disposal when it comes to an antitrust investigation, with the potential to break up a business for violating competition laws.

But states still can play a powerful role. For example, state attorneys general in the 1990s helped build a broader case against Microsoft, after rivals complained that it leveraged its Windows monopoly as it entered new markets and used it to erect barriers to those who competed against it.

For Google, the states’ heightened interest comes about six years after the U.S. government formally studied the tech giant’s search-and-advertising business but opted against slapping it with significant penalties. The inaction in the United States came to stand in stark contrast with Europe, which later issued a series of stinging, multibillion-dollar fines against the company for the way it displays search results and manages its Android smartphone operating system.

The DOJ and the Federal Trade Commission’s broad reviews into big tech could later evolve into more formal probes of Google and its Silicon Valley peers. Senate lawmakers on Tuesday announced they’d hold a hearing focused on tech giants that acquire smaller rivals.

Please enable JavaScript to view this content.

Editor's note: IBJ is now using a new comment system. Your Disqus account will no longer work on the IBJ site. Instead, you can leave a comment on stories by signing in to your IBJ account. If you have not registered, please sign up for a free account now. Past comments are not currently showing up on stories, but they will be added in the coming weeks. Please note our updated comment policy that will govern how comments are moderated.

{{ articles_remaining }}
Free {{ article_text }} Remaining
{{ articles_remaining }}
Free {{ article_text }} Remaining Article limit resets in {{ count_down }} days.