After the FTC staff report became public, there was an outcry, especially among European policymakers, as Google was under investigation by the European Commission. Google’s lobbyist e-mailed the FTC saying the company was “deeply troubled” 68 —its rivals were using the FTC staff report to “sow confusion and undermine the FTC’s conclusions, especially in Europe.” It pressed the FTC to defend its decision in a press statement. “Two days after the email was sent, and after the Wall Street Journal published another article about Google’s relationship with Washington,” the reporter who broke the story noted, “the FTC released a statement that provided the context [the Google lobbyist] had sought.”

Moving beyond this story, it is important to understand why lobbying will likely intensify with virtual competition. The stakes are greater, as firms can extract even more wealth under our collusion, behavioral discrimination, and Frenemy scenarios. Their increasing economic power will likely translate to political power, influencing governmental policies to preserve the status quo. Moreover, the legal standards applicable to many of our scenarios invite lobbying. Let us explain why: