U.S. regulators think Google occupies too much place in the Internet market

Google is facing a tough scrutiny of the U.S. government as its rapid growth and success made it almost sole player in the market of internet search and online advertising. The company attracts attention of antitrust enforcers concerned with the possible abolition of competitive market that may result from Google’s exorbitant extension.

"In some ways people think of them as potentially becoming the next Microsoft," attorney Beau Buffier, with Shearman and Sterling LLP, said of Google.

Evan Stewart of Zuckerman Spaeder LLP notes that while America is the leading country in the market of hi tech this position should not be backed by the fact it allows one company like Google to become an absolute monopolist. Steward said that measures should be taken to preserve competitiveness of the industry.

There are several investigations launched into the company to determine if it breaks anti-trust regulations. In one such investigation the Justice Department is examining Google’s agreement with the Authors Guild and Association of American Publishers that would allow it to create a massive, online digital library. The deal was attacked by a number of critics who say it assigns Google access to so-called orphan works, those whose copyright owners are unknown. Libraries also fear the product will become a must-have and extraordinarily expensive.

As it was earlier reported the Federal Trade Commission also opened an inquiry into whether the ties between the boards of Apple Inc and Google Inc violate antitrust laws. Google Chief Executive Eric Schmidt and former Genentech CEO Arthur Levinson are directors of both companies.

According to the experts’ opinion Google and Apple could be considered rivals inasmuch as iPhone has been a huge hit for Apple while Google's Android operating system is used on T-Mobile's G1 smartphone.

In case the regulators find that presence of Schmidt and Levinson on both boards is inappropriate they will have to step down from one of the companies, notes Steward.

"It's not that Google has necessarily done anything wrong," said Bert Foer, head of the American Antitrust Institute.

"It's not that it's bad or poorly intentioned," said Foer. "It's playing such a large role in the flow of information and has so much free cash to play with and so many creative and aggressive ideas that it presents potential problems regarding... privacy and competition."