Fmr. U.S. chief tech officer discusses antitrust lawsuit against Google

CNBC Television
20 Oct 202003:54

TLDRIn this discussion, Anish Chopra, former CTO under President Obama, shares his insights on the government's case against Google for alleged monopoly abuse in search and search ads. Chopra highlights the importance of fair competition and the role of expert agencies in upholding rules. He expresses confidence in the ongoing bipartisan efforts and legal processes, suggesting that while a breakup might be an extreme outcome, more likely is a negotiated settlement focusing on promoting competition in the search market. Chopra also addresses the timing of these actions in relation to the upcoming election, emphasizing that serious charges will continue to be pursued regardless of the political climate.

Takeaways

  • 📜 The government has a strong case against Google for allegedly abusing its monopoly power in search and search ads, with two separate cases being considered.
  • 🔍 The Justice Department has filed a case focusing on a narrower set of harms related to search promotion, while the broader accusations are based on the House antitrust hearing report.
  • 🤝 Anish Chopra, former CTO under President Obama, emphasizes the importance of fair competition and the role of expert agencies in ensuring compliance with rules.
  • 🇺🇸 Chopra expresses confidence in the American legal process, stating that a bipartisan group will take action and that the proceedings should move forward to ensure a fair and open market.
  • 🔎 The most likely outcome of the cases against Google is negotiation around remedies that promote competition in the search market, rather than a drastic measure like breakup.
  • 🚫 Chopra defends the Obama administration's approach, citing a thorough investigation by the Federal Trade Commission that concluded at the time there was insufficient evidence to merit action.
  • 🌐 He notes that markets and technology have evolved since then, with the rise of mobile search changing the dynamics of the market.
  • 🏛️ The definition of the market itself is evolving, and Chopra believes that the current processes will render the right judgment, even if the actions taken will be different from the past.
  • 🗳️ The timing of the case filing close to an election is acknowledged, but Chopra points out that the bipartisan seven-state coalition will continue to pursue serious charges post-election.
  • 📉 Chopra advises the market to be mindful of the ongoing active program that could have a significant impact, regardless of the election outcome.

Q & A

  • What is Anish Chopra's current position and what was his previous role under President Obama?

    -Anish Chopra is currently the President of Care, and he served as the former Chief Technology Officer under President Obama.

  • What are the two cases mentioned in relation to Google's alleged abuse of monopoly power?

    -The two cases are the Justice Department's filing focusing on a narrower set of harms around search promotion, and the broader set of accusations that are in the House antitrust hearing report, which is likely the basis for the state Attorney General's ongoing work.

  • What is the significance of the Justice Department's action in relation to the broader antitrust efforts?

    -The Justice Department's action is significant as it represents an official response to allegations against Google, but it is part of a larger set of proceedings and investigations that aim to evaluate the seriousness of the charges and ensure fair competition.

  • What are the general rules and processes in place to maintain fair competition in the market?

    -There are established rules on the books to ensure fair competition. Expert agencies are tasked with making sure these rules are followed, and they take action when necessary to maintain an open and fair market.

  • What is the expected outcome of the antitrust cases against Google?

    -The most likely outcome is a form of negotiation around remedies that will promote more competition in the search market. While a breakup is the 'nuclear option,' a more pragmatic approach may involve agreed-upon behaviors that result in a more competitive environment.

  • How does Anish Chopra view the Federal Trade Commission's investigation during the Obama administration?

    -Chopra believes that the FTC conducted a thorough investigation at the time and that their judgment, based on the evidence, did not merit action against Google. He maintains faith in the FTC's research and the ongoing process.

  • What has changed since the FTC's investigation that might affect the current antitrust cases?

    -Markets and technology have evolved, with the rise of mobile devices significantly changing the landscape of search. The definition of the market itself is also evolving, which may influence the way the antitrust cases are assessed.

  • What is Chopra's perspective on the timing of the Justice Department's filing in relation to the upcoming election?

    -Chopra suggests that while the timing might raise questions, the seriousness of the charges should not be discounted. He points to the bipartisan nature of the seven-state coalition, which will continue its work beyond the election and is expected to have a market impact.

  • How does the interviewee suggest we should view the current antitrust proceedings?

    -The interviewee suggests that we should have confidence in the process, as it is designed to ensure fair and open markets. He emphasizes that whether the current team from the Justice Department continues the case or not, the bipartisan coalition will carry forward serious charges.

  • What is the role of state Attorney Generals in the antitrust cases against Google?

    -The state Attorney Generals are working on a broader set of harms beyond the Justice Department's narrow scope. They may engage in discussions about settlements or remedies, and their work is expected to continue long after the election, indicating a serious and ongoing effort.

  • What does the interviewee believe about the potential for a more competitive search market?

    -The interviewee believes that the antitrust proceedings, regardless of their outcome, will ultimately contribute to a more competitive search market through the implementation of remedies that promote fair competition.

Outlines

00:00

📜 Anish Chopra on Google's Antitrust Case

In this paragraph, Anish Chopra, former Chief Technology Officer under President Obama, discusses the government's case against Google for allegedly abusing its monopoly power in search and search ads. Chopra differentiates between the Justice Department's filing and the broader accusations in the House antitrust hearing report, which is likely the basis for the state AG's investigation. He emphasizes the importance of fair competition and the role of expert agencies in ensuring adherence to the rules. Chopra expresses confidence in the ongoing process, suggesting that it will lead to a better outcome for the American people. He also addresses the possibility of reprimand for Google, suggesting that negotiations around remedies for increased competition in the search market are the likeliest outcome. Chopra defends the Obama administration's approach, citing a thorough investigation by the Federal Trade Commission at the time, and acknowledges that markets and technology have evolved since then. Finally, he comments on the timing of the case in relation to the upcoming election, but assures that the bipartisan seven-state coalition will continue to pursue serious charges regardless of the election's outcome.

Mindmap

Keywords

💡Monopoly Power

Monopoly power refers to a company's ability to control the market for a particular product or service, thereby allowing it to set prices and restrict output without facing competition. In the context of the video, it is discussed in relation to Google's dominance in the search and search ads market, where the government is trying to prove that Google has abused this power.

💡Antitrust

Antitrust laws are regulations that aim to prevent businesses from engaging in practices that reduce competition. These laws are designed to maintain a fair marketplace by ensuring that no single entity gains too much power. In the video, the antitrust hearing report and the actions of the state attorneys general are highlighted as key components in addressing potential anti-competitive behavior by Google.

💡Justice Department

The Justice Department is a federal agency in the United States responsible for the enforcement of the law and administration of justice. In the video, the Justice Department has filed a case against Google, alleging that the company has engaged in anti-competitive practices.

💡Fair Competition

Fair competition refers to the open and unbiased rivalry between businesses in a marketplace, where none has an undue advantage over the others. It is essential for the health of an economy and for consumer protection. In the video, the importance of fair competition is emphasized as the underlying principle that the rules and regulations are designed to uphold.

💡Settlement

A settlement is an agreement reached between parties to resolve a dispute without going to trial. In legal cases, settlements often involve the accused party agreeing to certain terms or remedies to address the issues at hand. In the context of the video, a settlement could involve Google agreeing to changes in its business practices to promote more competition in the search market.

💡Breakup

In the context of business and antitrust law, a breakup refers to the forced division of a large company into smaller, independent entities to reduce its market power and increase competition. The term is used in the video to describe the most extreme potential outcome of the legal actions against Google, where the company might be forced to split into separate entities.

💡Regulation

Regulation refers to the rules and restrictions imposed by a regulatory authority to govern conduct in a specific industry or market. In the video, the discussion around regulation pertains to the potential need for increased oversight and rules to manage the growing power of tech companies like Google and Facebook.

💡Market Definition

Market definition is the process of identifying the relevant market within which a company operates, which is crucial for antitrust analysis. It involves determining the range of products and services, as well as the geographic area, that are relevant to the competitive dynamics under scrutiny. In the video, the evolving definition of the market, particularly with the rise of mobile search, is mentioned as a factor that could influence the regulatory approach.

💡Election Timing

Election timing refers to the scheduling of political events, such as elections, and how these events might influence policy decisions or legal actions. In the context of the video, the timing of the Justice Department's filing is questioned, with the suggestion that the current team may not be the one to see the case through to completion after the election.

💡Bipartisan

Bipartisan refers to cooperation or agreement between members of different political parties. It is often used to describe actions or policies that have support from both sides of the political spectrum, indicating a broad consensus on a particular issue. In the video, the bipartisan nature of the seven-state coalition is emphasized to highlight the seriousness of the charges against Google and the likelihood of continued action regardless of the election outcome.

Highlights

Anish Chopra, former CTO under President Obama, shares his insights on the government's case against Google for alleged monopoly power abuse.

There are two cases to consider: the Justice Department's filing and the broader set of accusations in the House antitrust hearing report.

The Justice Department's action is part of a larger evaluation to determine the seriousness of the charges against Google.

The rules on the books are meant to ensure fair competition, and expert agencies are tasked with making sure these rules are followed.

Chopra expresses confidence in the process and believes that the outcome will be better for the American people.

The most likely outcome is negotiation around remedies to ensure more competition in the search market.

Chopra defends the Obama administration's actions, citing a thorough investigation by the Federal Trade Commission that did not find sufficient evidence to merit action at the time.

Markets and technology have evolved, with mobile search vastly exceeding desktop search, and the definition of the market itself is also evolving.

Chopra believes that the right judgment was made during the Obama administration and that similar processes will render the right judgment now, even if actions will be different.

The timing of the case close to an election may lead to market reactions and changes in the team carrying the suit forward.

Chopra emphasizes the seriousness of the bipartisan seven-state coalition's charges, which will continue to have market impact beyond the election.

The interview with Anish Chopra on the government's case against Google is featured on CNBC's YouTube channel.

The discussion highlights the importance of fair and open markets and the role of government in regulating large tech companies.

Chopra's insights underscore the complexity of antitrust cases and the need for ongoing evaluation and adaptation to changing market conditions.

The interview provides a comprehensive overview of the legal and regulatory landscape surrounding Google's alleged monopoly power in search and search ads.

The transcript reveals a nuanced understanding of the antitrust issues at play and the potential implications for the tech industry and consumers.

Chopra's perspective as a former CTO under President Obama adds credibility and depth to the discussion on the government's approach to regulating tech giants.