This is one Crappy Old law which only creates monopoly and generates inefficiency

I was listening on somewhat similar issue in NPR as well. Most of the states have these type of laws on car dealership. Once upon a time long long ago these laws were needed to protect dealerships when Cars were hot commodity and Car manufacturers dictated really harsh terms and conditions on dealers. Now a days, these type of laws and rules are just archaic laws which just gives dealer association huge amount of leeway in close association with local politicians.

I think it is time to revisit such laws and change them to reflect new level playing field for both Manufacturers and Dealers..

Virginia says no to Tesla dealership

McLEAN, Va. (AP) — Virginia officials have rejected a request from Palo Alto-based electric carmaker Tesla Motors to operate its own dealership at a Tysons Corner mall.

State law requires manufacturers to sell cars through a dealer, unless the manufacturer can show that no dealer is available.

Tesla sought an exception, saying its unique model for selling cars would not be attractive to a traditional dealer. The showroom would be more of a “design studio” where customers would use touchscreens to customize options. No inventory would be on hand, and customers would wait up to six months to receive the vehicle. There would not be a service department.

The Virginia Automobile Dealers Association objected to Tesla’s request.

In a ruling Monday, Department of Motor Vehicles Commissioner Richard Holcomb said he was unable to say definitively that no dealer could meet Tesla’s needs.

Holcomb ruled against Tesla even though a DMV hearing officer had twice recommended that Virginia grant the company’s request .

Tesla has the opportunity to appeal Holcomb’s ruling in state court or resubmit its request with evidence that no dealer is available to operate the franchise in a manner that would benefit the public interest.

Tesla is waging similar campaigns in other states.

Why is FTC after Google?

I really can't understand logic of FTC going after Google over some silly allegations of search results tempering.. Couple of things... First, Search is Google's bread and butter and I would really doubt if they will tinker it intentionally for minor gains.. Secondly, if they really do something this stupid, there are enough search engines in market where users can go and use them and ditch Google.. Leave it up to users to decide if they like search results or not..

I very strongly feel that such things are responsible for unnecessary increasing cost of  doing business and thus higher costs to end users/customers.. This only creates some dumb excuses for bigger government and hence bigger tax bill for citizens.. Unless, there are some serious monopoly issues, government should let consumers and users of these services decide about which services to use and which ones not to..

Here is the article from San Jose Mercury News:

Antitrust probe of Google is urged

By Jeff Bliss

Bloomberg News

Google’s business practices, including allegations the company favors its own services in Internet searches, raise concerns about squelching competition that need to be reviewed by U.S. regulators, two lawmakers said. The Federal Trade Commission should determine whether Google has violated antitrust law or hurt consumers, said Sen. Herb Kohl, D-Wis., chairman of the Senate Judiciary antitrust subcommittee, and Sen. Mike Lee, R-Utah, the panel’s senior Republican, in a letter Monday to FTC Chairman Jon Leibowitz. Earlier this year, the FTC initiated an investigation of Mountain Viewbased Google, owner of the world’s most popular search engine. The FTC is examining whether Google unfairly ranks search results and is using its control of the Android mobile operating system to discourage smartphone makers from using rivals’ applications and services, a person familiar with the matter said in August. Google’s practices “warrant a thorough investigation by the FTC,” the senators wrote in the letter released Monday. “A key question is whether Google is using its market power to steer users to its own Web products or secondary services and discriminating against other websites with which it competes.” The lawmakers’ letter took no position on the legality of Google’s practices.

“We appreciate that the committee reserved judgment as we continue to cooperate with the FTC,” Adam Kovacevich, a Google spokesman, said in an email.