Google CEO Larry Page (Liz Sulivan)
Google, after a year under the antitrust microscope, appears likely to avoid the most severe regulatory penalties — ones that could have forced it to change its business model, The Post has learned.
The Federal Trade Commission, which has been conducting a wide-ranging investigation into Google’s search business and other areas, will soon charge Google with a “deceptive acts or practices” violation, according to a source close to the situation.
Such a charge, known in FTC parlance as a Section 5 case, would find, for example, that Google’s search engine produced deceptive results but would not force the Mountain View, Calif., company to alter its search algorithm or exit certain business sectors.
Charges could include specific cases of search preference, and could also revolve around CEO Larry Page’s company pressuring phone makers who use its Android operating system to use Google as its default search engine, the source said.
Under this scenario, the FTC would ask Google to sign a cease-and-desist order, the source added.
There have been concerns Google unfairly raises the profile of its own services in search results while downgrading competitors.
The FTC is still negotiating with Google, and is expected to file charges before the Nov. 6 presidential election.
Most of the investigation now is focusing on the Android operating system, and not search preference, sources said.
Collin Gillis of BGC Partners said, “The FTC will have a tough time going after Google’s Android practices, but it makes a good target as a market dominator with 1.3 million Android phones activated daily and a half-billion total.
“Look at Microsoft,” Gillis said. “Every product Google makes Microsoft makes — search, apps, operating systems. It’s hard to claim Google is a monopoly when you’ve got Microsoft competing on so many fronts.”
Phone manufacturers using the Android system have the choice to use Google as its default search site, and get a cut of search-ad revenue in return, sources said.
Google, even though it may only need to sign a cease-and-desist order, may still be reluctant to agree.
Depending on what Google signs, it may leave itself open to lawsuits from rivals, sources said.
For that reason, the company might challenge the charges and let a judge decide if the FTC has a legitimate case, the source said.
Any action would be a last hurrah for FTC Chairman Jon Leibowitz, who sources said is planning to step down as one of the nation’s top monopoly-busters by the end of the year.
A Google spokesman said, “We continue to work cooperatively with the Federal Trade Commission and are happy to answer any questions they may have.”
The FTC did not return calls.