Behind Google's Antitrust Escape

After early hopes for a sweeping antitrust case against Google, it became clear to the Federal Trade Commission last fall that no such lawsuit was in the offing. A clinching moment came in November when FTC staff, who had exhaustively investigated the Internet search giant for 18 months, told the five FTC commissioners that they shouldn't bring a broad antitrust case, rebutting the theory that Google abused its dominant market position in Internet search to favor its own products and services at rivals' expense.

Instead, in a series of packed meetings at room 432 of FTC headquarters, they recommended pursuing a series of smaller issues. People familiar with the FTC's probe said both staff and several commissioners felt that Google engaged in questionable behavior, but they struggled to come up with a convincing theory of how consumers, and not just competitors, were harmed. Even if some in the commission didn't like what Google was doing, they concluded the tactics weren't necessarily violating antitrust law, people familiar with the process said. At the same time, Google had also undertaken extensive efforts to set an escape hatch from U.S. antitrust efforts. The Internet company spent years on lobbying and other efforts to build up goodwill in Washington, becoming the fifth-highest spender on lobbying in 2012, shelling out more than $14 million related to the antitrust probe and other issues, according to the nonpartisan Center for Responsive Politics and lobbying disclosure statements. Google also dispatched executive chairman Eric Schmidt and other employees to garner support from lawmakers, adding political pressure to the landscape.