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	<title>Betabeat &#187; Five Reasons Eric Schmidt Should Testify In the Antitrust Probe Against Google</title>
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		<title>Betabeat &#187; Five Reasons Eric Schmidt Should Testify In the Antitrust Probe Against Google</title>
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		<title>Five Reasons Eric Schmidt Should Testify In the Antitrust Probe Against Google</title>

		<comments>http://betabeat.com/2011/06/five-reasons-eric-schmidt-should-testify-in-the-antitrust-probe-against-google/#comments</comments>
		<pubDate>Fri, 24 Jun 2011 11:45:52 -0400</pubDate>
					<link>http://betabeat.com/2011/06/five-reasons-eric-schmidt-should-testify-in-the-antitrust-probe-against-google/</link>
			<dc:creator>Nitasha Tiku</dc:creator>
				
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		<description><![CDATA[<p><img class="alignleft size-medium wp-image-10564" style="margin: 5px 10px;" title="Google+CEO+Eric+Schmidt+Discusses+Future+Internet+FhXokCx3yRXl" src="http://nyobetabeat.files.wordpress.com/2011/06/googleceoericschmidtdiscussesfutureinternetfhxokcx3yrxl.jpg?w=200&h=300" alt="" width="200" height="300" />The Federal Trade Commission is reportedly on the verge of serving Google with subpoenas as part of a broad <a href="http://www.nytimes.com/2011/06/24/technology/24ftc.html?_r=1&amp;hpw">anti-trust investigation</a> into Google's primary money-maker: its search engine business. For months, the FTC's lawyers have been gathering intel about the way Google ranks search results and related advertising to determine whether it amounts to anti-competitive behavior.</p>
<p>Meanwhile, Senators Michael Lee (R-Utah) and Herb Kohl (D-Wisc) have said they're "<a href="http://www.marketwatch.com/story/googles-page-schmidt-face-pressure-to-testify-2011-06-23">very disappointed</a>" to hear that Google has ignored Congress' request to have Larry Page or former CEO Eric Schmidt testify at a hearing on competition in search and send their chief legal officer instead. Here's why we think Google should reconsider, and send Mr. Schmidt to Washington.</p>
<p><!--more--></p>
<p><strong>1. The Best Offense Is a Good Defense<br />
</strong></p>
<p>It was hard not to notice the timing yesterday when word leaked out about the possibility that the FTC would hit Google with subpoenas <em>the day after </em>Senator Kohl, chairman of the Subcommittee on Antitrust, Competition Policy and Consumer Rights, and Lee, the committee's ranking Republican, issued a statement saying, "We would very much prefer to work this out by agreement rather than  needing to resort to more formal procedures." Senate subcomittees can use subpoenas to compel witnesses to testify, which means if Google doesn't offer up Mr. Page or Mr. Schmidt, it could be facing subpoenas from both the FTC and the Senate. We have a feeling the splashy headlines fed to the press by sources "familiar with the matter"--and what it did to <a href="http://www.google.com/finance?client=ob&amp;q=NASDAQ:GOOG">Google's stock price</a>--were designed to compel Mr. Schmidt or Mr. Page to click "buy" on that ticket to D.C.</p>
<p>Sure there's a chance of a damning soundbite could emerge, especially when a top-level executive has to explain why a crappy service like Google Places always makes it to the top of your search results. But there's also a chance for Mr. Schmidt and Mr. Page to sow the seeds of that "this is all Microsoft's evil plan" conspiracy theory they keep trying to sell.</p>
<p><strong>2. Don't Put the Asperger-y Dude in Front of the Microphone</strong></p>
<p>Assuming Google opts to take the Senate up on its threat, it should clearly be Mr. Schmidt and not Mr. Page that sits across from the panel. The <em>New Yorker'</em>s Ken Auletta, author of <a href="http://www.amazon.com/Googled-End-World-Know-ebook/dp/B002UZ5JR2/ref=ntt_at_ep_edition_2_1?ie=UTF8&amp;m=AG56TWVU5XWC2"><em>Googled: The End of the World As We Know It</em></a>, explained it best back in January when Mr. Page <a href="http://www.newyorker.com/online/blogs/newsdesk/2011/01/eric-schmidt-google.html?mbid=social_twitter">reclaimed his throne</a>:</p>
<blockquote><p>It was always assumed that one day Page would be C.E.O. Now that he is  about to be, he will have to change. He is a very private man, who often  in meetings looks down at his hand-held Android device, who is not a  comfortable public speaker, who hates to have a regimented schedule, who  thinks it is an inefficient use of his time to invest too much of it in  meetings with journalists or analysts or governments. As C.E.O., the  private man will have to become more public. And he will have to rid  himself of a proclivity most engineers have: they are really bad at  things they can’t measure. Like fears about Google’s size, and privacy  and copyright and how to deal with governments that are weak at  measurement but rife with paranoia.</p></blockquote>
<p><strong>3. Schmidt Knows the Drill</strong></p>
<p>The FTC's probe may be the most serious legal threat to Google in the past 12 years, with "the<a href="http://online.wsj.com/article/SB10001424052702303339904576403603764717680.html"> potential to reshape</a> how companies  compete on the Internet" but it's hardly the first time Google's found itself in antitrust hot water. In the past twelve years, Google has faced <a href="http://searchengineland.com/googleopoly-the-definitive-guide-to-antitrust-investigations-against-google-82906">13 antitrust investigations</a> around the world. Mr. Schmidt was CEO for nine of them and as <a href="http://searchengineland.com/googleopoly-the-definitive-guide-to-antitrust-investigations-against-google-82906">Search Engine Land's Danny Sullivan</a> says, Google "mostly [came] through OK."</p>
<p><strong>4. Let the Stigma Hit Schmidt on His Way Out the Door</strong></p>
<p>The FTC's probe is giving policy wonks a serious case of deja-vu for the Justice Department's<a href="http://blogs.wsj.com/law/2011/06/24/is-the-google-probe-microsoft-redux/?mod=google_news_blog"> landmark lawsuit </a>against Microsoft in the 1990s over Windows' dominance. The long-running case both tarnished Micorsoft's public image and is thought to have been the reason Bill Gates <a href="http://seattletimes.nwsource.com/html/microsoftpri0/2015414417_microsoft_history_repeats_itself_google_faces_anti.html">stepped down</a> as CEO. If the Senate and FTC are going to make Google in the new corporate villain, better it be Mr. Schmidt, now executive chairman and removed from day-to-day operations, than the new head honcho Mr. Page. Besides, Mr. Schmidt, a one-man <a href="http://nymag.com/daily/intel/2010/09/shit_schmidt_says.html">Orwellian quote machine</a>, has the flair to play the role.</p>
<p><strong>5. Consider It an Audition Tape<br />
</strong></p>
<p>Earlier this year, <a href="http://www.nypost.com/p/pagesix/google_schmidt_eyeing_tv_ezjyKCdWXAaApZH4hp24zM">Page Six</a> reported that Mr. Schmidt was working with CNN's Liza McGuirk, the executive producer of Parker Spitzer, on a talk show. What better way to drum up interest from the network that bestowed hosting duties on one of the country's most famous Johns than with some time in a Congressional hot seat?</p>
]]></description>
		<content:encoded><![CDATA[<p><img class="alignleft size-medium wp-image-10564" style="margin: 5px 10px;" title="Google+CEO+Eric+Schmidt+Discusses+Future+Internet+FhXokCx3yRXl" src="http://nyobetabeat.files.wordpress.com/2011/06/googleceoericschmidtdiscussesfutureinternetfhxokcx3yrxl.jpg?w=200&h=300" alt="" width="200" height="300" />The Federal Trade Commission is reportedly on the verge of serving Google with subpoenas as part of a broad <a href="http://www.nytimes.com/2011/06/24/technology/24ftc.html?_r=1&amp;hpw">anti-trust investigation</a> into Google's primary money-maker: its search engine business. For months, the FTC's lawyers have been gathering intel about the way Google ranks search results and related advertising to determine whether it amounts to anti-competitive behavior.</p>
<p>Meanwhile, Senators Michael Lee (R-Utah) and Herb Kohl (D-Wisc) have said they're "<a href="http://www.marketwatch.com/story/googles-page-schmidt-face-pressure-to-testify-2011-06-23">very disappointed</a>" to hear that Google has ignored Congress' request to have Larry Page or former CEO Eric Schmidt testify at a hearing on competition in search and send their chief legal officer instead. Here's why we think Google should reconsider, and send Mr. Schmidt to Washington.</p>
<p><!--more--></p>
<p><strong>1. The Best Offense Is a Good Defense<br />
</strong></p>
<p>It was hard not to notice the timing yesterday when word leaked out about the possibility that the FTC would hit Google with subpoenas <em>the day after </em>Senator Kohl, chairman of the Subcommittee on Antitrust, Competition Policy and Consumer Rights, and Lee, the committee's ranking Republican, issued a statement saying, "We would very much prefer to work this out by agreement rather than  needing to resort to more formal procedures." Senate subcomittees can use subpoenas to compel witnesses to testify, which means if Google doesn't offer up Mr. Page or Mr. Schmidt, it could be facing subpoenas from both the FTC and the Senate. We have a feeling the splashy headlines fed to the press by sources "familiar with the matter"--and what it did to <a href="http://www.google.com/finance?client=ob&amp;q=NASDAQ:GOOG">Google's stock price</a>--were designed to compel Mr. Schmidt or Mr. Page to click "buy" on that ticket to D.C.</p>
<p>Sure there's a chance of a damning soundbite could emerge, especially when a top-level executive has to explain why a crappy service like Google Places always makes it to the top of your search results. But there's also a chance for Mr. Schmidt and Mr. Page to sow the seeds of that "this is all Microsoft's evil plan" conspiracy theory they keep trying to sell.</p>
<p><strong>2. Don't Put the Asperger-y Dude in Front of the Microphone</strong></p>
<p>Assuming Google opts to take the Senate up on its threat, it should clearly be Mr. Schmidt and not Mr. Page that sits across from the panel. The <em>New Yorker'</em>s Ken Auletta, author of <a href="http://www.amazon.com/Googled-End-World-Know-ebook/dp/B002UZ5JR2/ref=ntt_at_ep_edition_2_1?ie=UTF8&amp;m=AG56TWVU5XWC2"><em>Googled: The End of the World As We Know It</em></a>, explained it best back in January when Mr. Page <a href="http://www.newyorker.com/online/blogs/newsdesk/2011/01/eric-schmidt-google.html?mbid=social_twitter">reclaimed his throne</a>:</p>
<blockquote><p>It was always assumed that one day Page would be C.E.O. Now that he is  about to be, he will have to change. He is a very private man, who often  in meetings looks down at his hand-held Android device, who is not a  comfortable public speaker, who hates to have a regimented schedule, who  thinks it is an inefficient use of his time to invest too much of it in  meetings with journalists or analysts or governments. As C.E.O., the  private man will have to become more public. And he will have to rid  himself of a proclivity most engineers have: they are really bad at  things they can’t measure. Like fears about Google’s size, and privacy  and copyright and how to deal with governments that are weak at  measurement but rife with paranoia.</p></blockquote>
<p><strong>3. Schmidt Knows the Drill</strong></p>
<p>The FTC's probe may be the most serious legal threat to Google in the past 12 years, with "the<a href="http://online.wsj.com/article/SB10001424052702303339904576403603764717680.html"> potential to reshape</a> how companies  compete on the Internet" but it's hardly the first time Google's found itself in antitrust hot water. In the past twelve years, Google has faced <a href="http://searchengineland.com/googleopoly-the-definitive-guide-to-antitrust-investigations-against-google-82906">13 antitrust investigations</a> around the world. Mr. Schmidt was CEO for nine of them and as <a href="http://searchengineland.com/googleopoly-the-definitive-guide-to-antitrust-investigations-against-google-82906">Search Engine Land's Danny Sullivan</a> says, Google "mostly [came] through OK."</p>
<p><strong>4. Let the Stigma Hit Schmidt on His Way Out the Door</strong></p>
<p>The FTC's probe is giving policy wonks a serious case of deja-vu for the Justice Department's<a href="http://blogs.wsj.com/law/2011/06/24/is-the-google-probe-microsoft-redux/?mod=google_news_blog"> landmark lawsuit </a>against Microsoft in the 1990s over Windows' dominance. The long-running case both tarnished Micorsoft's public image and is thought to have been the reason Bill Gates <a href="http://seattletimes.nwsource.com/html/microsoftpri0/2015414417_microsoft_history_repeats_itself_google_faces_anti.html">stepped down</a> as CEO. If the Senate and FTC are going to make Google in the new corporate villain, better it be Mr. Schmidt, now executive chairman and removed from day-to-day operations, than the new head honcho Mr. Page. Besides, Mr. Schmidt, a one-man <a href="http://nymag.com/daily/intel/2010/09/shit_schmidt_says.html">Orwellian quote machine</a>, has the flair to play the role.</p>
<p><strong>5. Consider It an Audition Tape<br />
</strong></p>
<p>Earlier this year, <a href="http://www.nypost.com/p/pagesix/google_schmidt_eyeing_tv_ezjyKCdWXAaApZH4hp24zM">Page Six</a> reported that Mr. Schmidt was working with CNN's Liza McGuirk, the executive producer of Parker Spitzer, on a talk show. What better way to drum up interest from the network that bestowed hosting duties on one of the country's most famous Johns than with some time in a Congressional hot seat?</p>
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