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FTC staff will recommend suing Google for antitrust violations related to smartphone technology


News by Andrew Kameka on Friday November 02, 2012.

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Google has attempted to be anticompetitive and block competitors from accessing key smartphone technology, which should be cause for the commission to sue Google, according to FTC staff members. BusinessWeek reports that its sources say that staff members from the FTC will recommend that Google be sued, and a majority of the agency's five commissioners are likely to agree.

The FTC cites Google's attempts to block U.S. imports of Apple and Microsoft products as examples of antitrust law violations. Apple and Microsoft accused Google of using its Motorola subsidiary to force the companies to pay exorbitant rates for industry standard patents or face their products from being banned from being imported into the U.S. The FTC spoke with both companies in a formal investigation that also examines Motorola's actions prior to Google acquiring the company.

Motorola has said that it offered 2.25 percent of retail price for royalty rates to Apple and Microsoft for their use of patents related wireless connectivity, Wi-Fi, and video streaming. Apple and Microsoft refused to negotiate because the companies claim those rates would be too high. Motorola is obligated to license industry standard patents under fair, reasonable, and non-discriminatory (FRAND) rates; however, rivals aruge that the company is unreasonable. Motorola says that Microsoft and Apple refuse to provide counteroffers.

source: BusinessWeek

 
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Andrew Kameka
Andrew is based in Miami, Florida.

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