Google book deal faces investigation
The Department of Justice yesterday said that it has launched a formal antitrust investigation into the proposed settlement over the Google Inc. project to scan millions of books into a digital format.
The Justice Department in April canvassed a number of organizations, including two nonprofit groups, that raised objections to Google’s settlement with the Authors Guild and the American Association of Publishers. But the queries were considered informal.
In a letter yesterday to the federal district court judge overseeing the settlement, the department framed its intent more clearly.
“The United States has reviewed public comments expressing concern that aspects of the settlement agreement may violate the Sherman Act,’’ which guards against anticompetitive practices, wrote William F. Cavanaugh, the Justice Department’s deputy assistant attorney general.
Cavanaugh wrote that the department has “no conclusions as to the merit of those concerns,’’ but saw issues that “warranted further inquiry.’’
Google said it is cooperating with the investigation.
The agreement, reached last fall, settles two copyright infringement lawsuits brought by authors and publishers against Google’s project, which is designed to create a searchable library of works that would become the basis of a digital book market.
In recent months, a number of parties have objected to the settlement, including Consumer Watchdog in Santa Monica, Calif., the American Library Association, and the Internet Archive.
Many of the objections involve concerns that Google would create a monopoly on digital books.
A Google spokesman said Google’s efforts would be good for consumers.
Paul Aiken, executive director of the Authors Guild, downplayed the significance of the Justice Department’s letter. “It appears to be just an official acknowledgment to the court of an investigation that we have known about for weeks,’’ he said. 