Sunday, March 01, 2009

A Google Monopoly?

The New York Times had a great article entitled Everyone loves Google until its too big and TechCrunch followed up on a great commentary on What an antitrust case against Google might look like.

Google has always been the goldenchild of Web 2.0 and I think thats largely because everything Google has done has been largely been seen as a consumer service. Until recently most of the public probably couldn't answer the question "How does Google make money?" and I think many viewed Google customers as the users browsing the web (when in reality clients are just as an important Google customer as its browsing user base).

The article brings up 3 key things that would need to be proved in order for the Justice department to begin considering an anti-trust case. They are:

  • The prescence of a monolopy
  • Abuse of the monopoly resulting in consumer harm
  • Detering market industry in areas that would benefit consumers

Eventhough it is tough to prove maybe someone will be able to prove point 1, but beyond that it would be very hard for anyone to buy points 2 or 3. No matter how big Google gets as long as they are viewed with the lense that their primary goal is to serve the public good by providing superior search services its going to be tough to ever claim that Google is in an monopolostic position that is hurting consumers.

To look at it a different way, maybe if the if we focus on advertisers as consumers first and not users, then there may be an issue. As Google gets larger and larger market forces will push Google's prices high enough that advertisers start calling foul. If hurting the advertiser can be linked to hurting the end consumer then Google is going to have to be on the lookout.

It certainly will be interesting to watch in the coming years...

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