News Analysis: Google Executive Chairman Eric Schmidt testified before a Senate antitrust subcommittee looking into the search giant's business practices. Schmidt had to provide carefully worded answers to some loaded questions.
finds itself in some trouble. The company's business is being reviewed by the
U.S. Federal Trade Commission to determine if the company is acting as a
monopoly and stifling competition in the marketplace. For its part, Google has
said that such claims are ridiculous, and it is simply performing better than
all other firms in a hotly contested online marketplace.
not everyone is so quick to agree. During a hearing with the U.S. Senate
Judiciary Committee's antitrust subcommittee,
Google Executive Chairman Eric Schmidt was forced to field questions
who continued to hammer away at Google's practices. Those senators cited Google
Search, the company's relationship with Yelp and much more. The questions
certainly indicated that the senators are, at the very least, skeptical of
Google and its business practices.
aside from that, much can be gleaned from Schmidt's testimony on Sept. 21.
During the entire process, he provided an important look into what Google
thinks, and how it operates its business.
1. Google won't back down
nothing else, Schmidt made it abundantly clear during his testimony before the
subcommittee that Google won't go down without a fight. The search giant
believes that it's not stifling competition in the marketplace and it's simply
performing extremely well where others are not. Perhaps Schmidt's most overt
statement on Google's intention to not back down came at the beginning of his
prepared testimony when he requested the subcommittee "ensure that the
FTC's inquiry remains a focused and fair process."
2. Google doesn't believe it's doing
seems to believe that it isn't doing anything wrong in the marketplace. Schmidt
said numerous times during his testimony that Google always "puts
consumers first" and continually tries to be as "open" as
possible. What's more, Schmidt said his company is "transparent" in
how it handles its business. Simply put, Schmidt-and Google-feels the search
giant is doing nothing wrong.
3. The competition idea is ridiculous to
has been made about Google's ability to stifle competition in the marketplace.
However, during his prepared testimony,
Schmidt made it clear that the search company thinks that argument is nonsense
He said the Internet is an open environment for any company to come up and grab
market share away from competitors. He also noted that Google competes "hard"
against Amazon, Microsoft and others in the search and cloud computing spaces.
In other words, even though Google Search is dominant and its advertising
platform is the only go-to option for most advertisers, Google still believes
its competitors can catch up.
4. Google is worried about the FTC's
important to note that Google is clearly concerned about the FTC's inquiry into
its business. As history has shown, the U.S. government hasn't always been so
kind to major corporations. And Schmidt, trying to acknowledge that, asked the
subcommittee to help Google receive a "fair" review of its business
from the FTC. Schmidt also ended his prepared testimony with mention of the
FTC, saying that the inquiry should show that Google is an "enthusiastic