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Google has said the settlement will benefit authors, publishers and readers, because it will result in expanded access to books. Nonetheless, the deal is drawing increasingly vocal critics. Among
others, advocacy group Public Citizen opposes a portion of the
settlement, as does Consumer Watchdog. Additionally, New York Law
School intends to file a brief asking for antitrust oversight of the
deal. Last week, it also came to light that the Justice Department was
making inquiries about the settlement.

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US antitrust enforcers are investigating Google’s settlement with
publishers over its book-scanning project, but the internet firm has
defended its position. Google reached an agreement in October to create a $125 million fund to
pay authors to have their work scanned and made available online. The US Justice Department became involved after representatives for
Consumer Watchdog and the American Antitrust Institute raised concerns
earlier this month, according to Bloomberg News.

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In early April 2009, a nonprofit watchdog group, Consumer Watchdog, had called upon the Justice Department to examine the ramifications of Google’s plan to scan so-called "orphan books," which are volumes still under copyright but whose rights-holders cannot be found, into its growing library of digital text. An advocate for the group argued in a letter to Attorney General Eric Holder that such a deal would need to be reviewed to ensure that it had sufficient consumer protections.

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For the first time since its preliminary approval in November 2008,
the Google Book Search settlement is looking less like a done deal. On
April 28, New York federal judge Denny Chin granted a four-month
extension, delaying the initial May 5 deadline to opt out or object to
the Google settlement until September 4, with a fairness hearing now
set for October 7. The ruling leaves all other dates in place, at least
for now, but raises questions about the deal’s prospects for final
approval.

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The Department of Justice has opened an inquiry into the settlement,
according to three people who have spoken with investigators. Such
inquiries don’t necessarily turn into formal investigations, though
some advocates are pressing the government to get involved. "We’d like to have them intervene and delay the settlement until the
antitrust issues get fixed," said John M. Simpson of Consumer Watchdog, a
nonprofit group that contacted the Justice Department about the
settlement a month ago.

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Google has defended its online book deal amid reports it is being reviewed by the US justice department.

Consumer Watchdog told the BBC it was one of a
number of groups involved in calling on the Department of Justice to
act "We felt the deal set up an unfair monopolistic situation for Google,"
explained Consumer Watchdog advocate John M. Simpson. "We do need to have the world’s books digitized but I think there are
very big concerns if one internet giant is able to dominate the digital
market. We want a level playing field here," Mr. Simpson said.

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U.S. antitrust enforcers are asking questions about Google’s settlement
with publishers over its book-scanning project, representatives for
Consumer Watchdog and the American Antitrust Institute said. Consumer Watchdog, a Santa Monica, Calif.-based consumer group, spent
about an hour on the phone with Justice Department lawyers this month
to discuss their concerns, John Simpson, a consumer advocate at the
group, said in an interview.

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Earlier this month, Consumer Watchdog sent a letter to Attorney General
Eric Holder arguing that the deal between Google and the Author’s Guild
raises antitrust concerns and hasn’t been adequately scrutinized with
the public’s interest in mind. Consumer Watchdog objected to two components of the deal, arguing they
create barriers to entry for potential Google competitors, thereby
giving Google an unfair advantage in the nascent marketplace for
digital books.

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Google has reportedly been questioned by the U.S. Justice Department over whether its plans to digitize the world’s books into an online database represents a potential antitrust violation. An advocate for Consumer Watchdog, John M. Simpson, wrote a letter to
U.S. Attorney General Eric Holder asking for government intervention in
Google’s settlement with the Author’s Guild and the Association of
American Publishers, arguing that it should have been reviewed to see
if it met "the interests of consumers."

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John M. Simpson, an advocate with Consumer Watchdog, a California consumer
group, said his organization had been contacted by justice department
lawyers to discuss orphaned rights after protesting about this aspect
of the Google book settlement early this month. Meanwhile, a second
person said that the anti-trust agency had also held talks with lawyers
for Google on the same issue in the last two weeks.

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