By John D. McKinnon
WASHINGTON -- A number of companies and interest groups have
waged behind-the-scenes lobbying campaigns over who will chair the
Federal Trade Commission, an appointment with far-reaching
implications for the high-tech and telecommunications sectors.
One effort is being made by companies that have clashed with
online search giant Google, a unit of Alphabet Inc. They have been
making calls and meeting with Trump administration representatives
on behalf of Utah's Republican attorney general, Sean Reyes,
according to several people familiar with the matter.
Mr. Reyes, who favors greater scrutiny of Google, is viewed as a
potential thorn for the search-engine company if he were to chair
the FTC.
The other leading candidate for the job is said to be the
current acting chairman, Republican Maureen Ohlhausen, a veteran
official of the consumer-protection agency.
Four years ago, Ms. Ohlhausen joined with the
Democratic-majority FTC in a unanimous decision to close key
aspects of an antitrust investigation of Google. In contrast, Mr.
Reyes last year wrote a letter to the FTC in which he urged the
commission to consider reopening the investigation.
The search giant's business practices -- particularly its use of
others' intellectual property -- have raised concerns among content
creators and others.
While both Ms. Ohlhausen and Mr. Reyes bring extensive
qualifications, other candidates remain possible and the final
decision will be up to President Donald Trump. Some observers
believe that Mr. Reyes is the front-runner, but that the longer the
debate goes on, the better Ms. Ohlhausen's chances become.
Companies promoting Mr. Reyes include software maker Oracle
Inc., which has waged an epic legal battle against Google, and
crowdsource review publisher Yelp Inc. Ms. Ohlhausen has drawn
public support mostly from conservative groups and legal and
regulatory experts, many of them in Washington.
AT&T Inc. and News Corp, along with other companies also
have been part of the pro-Reyes effort, according to people
involved. News Corp, which owns The Wall Street Journal, has been a
vocal critic of the tech giant's dominant position in search.
AT&T and News Corp declined to comment.
So far, Google appears to be maintaining a low profile in the
debate over the FTC, which effectively serves as the main regulator
for the company's core business. The situation is a dicey one for
Google, which enjoyed close relations with the Obama
administration. Alphabet Chairman Eric Schmidt also worked closely
with the Hillary Clinton campaign .
Some of Ms. Ohlhausen's allies have made public efforts on her
behalf, including a letter to Mr. Trump in late January signed by
more than a dozen conservative advocacy groups that endorsed her
for the permanent chairmanship.
In an interview this month, Ms. Ohlhausen said she has been
grateful for the public expressions of support she has received,
but added, "I'm not behind them."
"What I want to do is explain why I think I have a strong agenda
for the FTC that I think could advance President Trump's agenda,"
Ms. Ohlhausen said, citing her support for "advancing economic
liberty" and curbing regulatory overreach.
Her allies say she shouldn't be regarded as friendly to
Google.
A spokesman for Mr. Reyes, Daniel Burton, declined to
comment.
Pro-Reyes businesses and their allies have been making calls to
people who might have influence with the Trump administration,
encouraging them to weigh in, according to people familiar with the
matter. Mr. Reyes has gained support from fellow Utah leaders,
particularly Republican Sen. Orrin Hatch.
Mr. Reyes also has found a Democratic ally in the attorney
general for the District of Columbia, Karl Racine, who joined him
in the letter concerning the Google antitrust investigation. Mr.
Racine said in an interview that he has been impressed enough to
offer to help the conservative Republican win the job.
Yelp has taken a prominent role in the business effort,
according to two people familiar with the matter. The company
considers Mr. Reyes a favorable alternative to Ms. Ohlhausen, who
is viewed by some as too close to Google, these people say. Yelp
declined to comment.
People familiar with the matter said Oracle also is supporting
Mr. Reyes. An Oracle spokeswoman declined to comment.
The pro-Ohlhausen letter has generated some controversy among
conservatives. It originally was drafted to criticize a last-minute
regulatory decision by FTC appointees of former President Barack
Obama. But as it circulated, the letter morphed to include a strong
endorsement of Ms. Ohlhausen, according to several people
involved.
One of the more prominent signers, Matt Schlapp, chairman of the
American Conservative Union, said recently in a statement that "the
letter we signed was not intended to endorse one of the candidates"
for FTC chairman, adding that the ACU is "pleased that additional
solid candidates like Attorney General Reyes are being seriously
considered."
On one level, the efforts are just the latest version of a fight
that plays out periodically between companies and industries as new
regulators are chosen. Oracle has a potential advantage because
co-CEO Safra Catz served on the Trump transition team.
Some see a proxy battle at work. Oracle and Google have had a
bitter rivalry, the root of which is a seven-year legal battle over
Google's use of Oracle software in the Android smartphone operating
system. Google won the latest round in May, and Oracle has since
increased its efforts to oppose Google in other arenas.Oracle helps
fund several anti-Google lobbying organizations and has urged
European regulators to investigate changes to Google's privacy
policy.
Drew FitzGerald contributed to this article.
Write to John D. McKinnon at john.mckinnon@wsj.com
(END) Dow Jones Newswires
February 23, 2017 17:19 ET (22:19 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.
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