AntitrustInvestigation
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DOJ looking into whether Comcast, other TV giants are unfairly (knee)capping Hulu, Netflix
The Department of Justice may have taken Netflix chief Reed Hastings' net neutrality complaints about Comcast as a lot more than just sour grapes. It's reportedly conducting an investigation into whether Comcast, AT&T and other TV providers are anti-competitive in their data restrictions. The Wall Street Journal cites primary concerns that Comcast's Xfinity TV cap exemption might unfairly punish competing services, but also claims that officials are worried the caps themselves steer viewers away from internet video, helping the incumbents cling to legacy TV for just a little while longer. On top of its cap anxiety, the DOJ may be looking into policies requiring traditional TV subscriptions just to watch online. None of the involved parties have commented on or confirmed the investigations, so there's no guarantee of any full-fledged lawsuit. Still, while TV operators insist they're being fair and need to keep data use in check, that might not deter legal action when the DOJ has supposedly questioned Hulu, Netflix and other relative newcomers who feel they're being squeezed. When Sony postpones its IPTV goals after fretting over US data caps, it's hard to imagine that there aren't at least a few raised eyebrows in Washington.
South Korea's FTC reportedly raids Google again over lack of cooperation
Google might be in trouble for how it handled an earlier raid by South Korean officials over antitrust concerns. Insiders claimed to AllThingsD that the country's Fair Trade Commission stormed Google's Seoul offices again on May 28th after the company allegedly stonewalled the investigation in suspicious ways. Among the accusations, Google supposedly deleted files and asked staff to work from home rather than face inquiries. The FTC's goal was still to answer complaints from local search firms Daum and NHN that Google was unfairly making it difficult to use a non-Google search engine in Android. Google still says it's cooperating with regulators, but the assertions if they're accurate would paint a different picture. They certainly don't alleviate pressure in the US over similar subjects.
US Dept. of Justice approves Apple's purchases of Nortel, Novell patents
Yesterday, the U.S. Department of Justice Antitrust Division closed its investigations into three major acquisitions that were pending, opening the door to completion of these acquisitions by the companies involved. For Apple, the acquisition of patents from Nortel Networks Corporation and Novell Inc has been green lighted, clearing the way for the company to finalize the purchase of intellectual property. Apple, Microsoft, RIM and some other players had joined together as "Rockstar Bidco" to acquire patents at the June 2011 Nortel bankruptcy auction. Nortel had a portfolio of approximately 6,000 patents and patent applications, including many "standard essential patents" that the new owners will be able to license to other "industry participants." What makes standard essential patents so valuable is that they become part of industry standards (e.g., 3G, 4G, Wi-Fi) and must be licensed by manufacturers who wish to create compatible devices. Apple is also acquiring patents that were formerly owned by Novell and were acquired on behalf of Apple, Oracle, and EMC Corporation in April of 2011. It doesn't appear that Apple will be able to pull in license fees for these patents, as Novell had committed to cross-license the patents on a royalty-free basis for use in the "Linux system." A third part of the DOJ announcement could affect Apple indirectly. The DOJ has now cleared the way for Google to acquire Motorola Mobility, which not only manufactures smartphones and tablets but also holds a portfolio of "approximately 17,000 issued patents and 6,800 (patent) applications." Once again, there are hundreds of "standard essential patents" that Google will be able to license to other companies.
FTC reportedly focusing on Android, search placement in Google probe
We've known since late June that Google has found itself the target of an FTC probe, but until now we haven't had any indication about exactly what the FTC was probing. According to a report from The Wall Street Journal today, however, the FTC is looking at both Android and Google's search practices, and specifically whether it gives preferential placement to its own products and services at the expense of its competitors. The WSJ also says the FTC is looking into allegations that Google unfairly takes information like reviews of local businesses from its competitors, and then uses it on its own sites while also pushing those competitors down in its search results. For its part, Google denies that it engages in any such practices, and says that it is "happy to answer any questions" the FTC has about its business.
