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Top US regulator clears Google of manipulating search results charge

Google is 'one of America's great companies' and accusations by web rivals like Microsoft are a result of 'hand-to-hand combat' rather than a fair representation of its practices, says Jon Leibovitz, chairman of America's Federal Trade Commission.

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Google won a crucial victory on Thursday night after a top US regulator ruled it does not unfairly manipulate its search results in a decision that will come as a heavy blow to major rivals. Jon Leibovitz, chairman of America's Federal Trade Commission (FTC), said Google was "one of America's great companies" and that accusations by web rivals such as Microsoft were a result of "hand-to-hand combat", rather than a fair representation of its practices.

"We followed the facts where they lead," Leibovitz said. "Although some evidence suggested Google was trying to eliminate competition, Google's primary reason for changing its look and feel or [search] algorithm was to improve search results". He added that the practices of which Google was accused were also used by those alleging unfair behaviour.

The FTC conceded that its verdict would be criticised. "Many of Google's competitors wanted the commission to go further and regulate the intricacies of Google's search engine algorithm," said the FTC chairman.

Despite the ruling, Google has voluntarily agreed to look at both how it "scrapes" content generated for other websites and at its use of patents. The Institute for a Competitive Marketplace said it was "deeply disappointed" and called for Europe to demand more meaningful concessions from Google.

In its own response to the FTC, Google said: "The conclusion is clear: Google's services are good for users and good for competition. "We've always accepted that with success comes regulatory scrutiny. But we're pleased that the FTC and the other authorities that have looked at Google's business practices have concluded that we should be free to combine direct answers with web results."

Meanwhile, Eric Schmidt, Google's executive chairman, faced criticism from the US State Department on Thursday for his plans for a private trip to North Korea. "We don't think the timing of this is particularly helpful," the Department said, citing North Korea's launch of a long-range rocket in December, which raised tensions in the region.

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