Google Spars with Barry Diller’s IAC on Deceptive Marketing Practices

Google decides to impose severe penalties on the online conglomerate IAC / InterActive Corp. for what the search giant concluded to be deceptive marketing practices, according to documents reviewed by the Wall Street Journal and people familiar with the matter.

Google, which has determined that IAC has misled users about its browser extensions, could go so far as to ban these products from its Chrome browser. IAC, under the leadership of Chairman Barry Diller, pushes back, saying such a move would devastate a key part of its business.

So far, the Alphabet Inc. unit has not acted on the internal recommendation of its Chrome Trust and Security team regarding IAC in part because the two are rivals in certain categories and because the executives of the giant researchers, including legal director Kent Walker, are worried. that the sanctions could be considered anti-competitive, according to people familiar with the matter.

Google was sued in October by federal prosecutors for allegedly operating an antitrust monopoly on search. State officials complete their own investigations, which may result in additional costs. Google has said it will challenge any allegations in court.

The research company’s concerns with IAC center around browser extensions, which are external applications that run in Google’s Chrome browser. Browser extensions created by IAC promise users quick access to content such as daily Bible quotes, power tool manuals, and government forms.