They Might Be a Little Evil

Why Google faces antitrust scrutiny.

« Return to Article

Discuss

Member Comments

  • Posted By: ifstone @ 05/29/2009 11:58:29 PM

    Google deserves antitrust scrutiny not just for its control of search and web advertising, but also for engaging in very Microsoft-like tactics in the way it favors its preferred web browser software.

    Mozilla Firefox famously has a very sweet deal over search referral revenue it receives from Google, a deal that other browsers don't get -- not IE certainly, and not Opera, iRider, Safari or anyone else. Mozilla's is being revised now because Google has produced its own browser called Chrome. Google leverages all the eyeballs that see its search pages in order to promote Chrome very aggressively. This isn't quite like bundling IE with Windows, but it's definitely a dominant company using its leverage aggressively, and it's amazing how little skepticism there's been about the politics of Chrome.

    And I'm surprised Lyons didn't mention Google's acquisition of DoubleClick, a big internet advertising company. One wonders whether that deal would have been approved now, after the sudden demise of laissez faire orthodoxy.

  • Posted By: Zerias @ 05/26/2009 8:41:28 PM

    General rule of thumb : if Obama's administration is involved, take the other side. Obama's anti-trust people already said they don't care about Microsoft, which is a convicted felon, and have already made motions to do whatever Microsoft wants to be done. The very big problem with Google, and the one that Obama's administration wants to overlook, and the one Microsoft overlooks completely, is that Google has earned their position at the top of the market chain by simply offering a better product. In this case, Google has offered a plainly better ad-system. The fact is, Google Ad's work for a majority of vendors involved. Google isn't the first ad-provider, and most certainly won't be the last ad-provider. Yahoo and Microsoft, rather than stepping up their efforts competitively, largely seem to have resorted to rattling legal sabers instead. That's not good business practice.

    That's why Yahoo's market share has plummeted. That's why Microsoft's market share has plummeted. A lot of people seem to be unhappy with how much market share Google has, but most of those people seem to ignore several pertinent factors. They seem to ignore how quickly Google came to prominence, and how fast previous kings left prominence. A good case in point about how quickly markets can change can be found in the video game market. Back in 2004 developers and publishers had written Nintendo off. Nintendo was dead, hasta'la'vista, goodbye, sayanora. Microsoft and Sony had all the action. Today, Nintendo's Wii has well over 30million units sold, and the 50millionth unit has already been built. Microsoft's at the bottom of the heap, again, and desperately trying to hide the massive hardware quality issues with the Xbox 360. Sony's in Second place, but a distant second place from their first place spot back during the days of the PS2. At the Playstation 2 hey-day though, Nintendo wasn't rattling legal sabers about developers publishing games on the PS2. Nintendo wasn't threatening to bring down anti-trust authorities if Sony wasn't broken up and forced to force all PS2 developers to develop for other platforms. Nintendo had a market plan, they delivered on that market plan... and they worked.

    Is the point I'm making clear? Just because somebody's in first place and you are dead last, doesn't mean you give up and go cry. That's what Microsoft and Yahoo are doing now. That's what the Liberal Democrats are doing now. And that's bad. It's bad for the economy. It's bad for your wallet. And it's bad that the author of this piece seems to think Obama's administration is capable of anything good.

    • Posted By: GTraynor @ 05/27/2009 1:51:16 AM

      Care to cite where the Obama Administration's "anti-trust people already said they don't care about Microsoft, which is a convicted felon, and have already made motions to do whatever Microsoft wants to be done."? I've never heard about any ridiculous deal of the sort.

      • Posted By: mxrss @ 05/28/2009 2:31:14 PM

        @hellboy007

        You do realize the JAVA borrowed from C Right? languages are progressive you dont scrap what worked, you scrap you improve what did not or does not make sense. C# was invented by halsjberg who helped with Delphi, while true C# did borrow a lot from java it also extended a lot of features that Java did not have.

        - Mike

  • Posted By: InstantCorrection @ 05/27/2009 4:54:43 AM

    Microsoft is second in the console race behind Nintendo.
    Worldwide sales figures
    Wii ??? 50.39 million, as of 31 March 2009 (2009 -03-31)
    Xbox 360 ??? 28.0 million, as of 1 January 2009 (2009 -01-01)
    PlayStation 3 ??? 21.3 million, as of 31 December 2008 (2008 -12-31)

    United States sales figures
    Based on figures from the NPD Group, as of 1 November 2008 (2008 -11-01)

    Wii ??? 13.4 million
    Xbox 360 ??? 11.6 million
    PlayStation 3 ??? 5.7 million

    Console Sales, YTD

    ???Wii 2,373,200
    ???360 1,205,000
    ???PS3 824,200

    Also add in the fact that in the month of April PS3 was the 5th best selling console that month sixth if you break apart the DS and DSi. I don't know where you got the the idea that Microsoft is at the bottom.

  • Posted By: marleyg @ 05/26/2009 12:39:25 PM

    Jstavene ,XEROX Labs and Apple stole it first. But if you follow your argument on patent laws and trademarks it should be irrelevant where the idea came from???all ideas are free right, don???t YOU wish you owned the patent? Look out what you ask for???your ideas and labor may become free. Why does every tech argument come down to a MSFT bashing? This story was about Google and yet turns into a MSFT hate club. Google, MSFT and IBM, etc???all have a right to compete and they do. If you do not like Windows, buy a Mac or use LINUX???same goes for Office. Markets should decide, not the government???however, since the government can do something to your competitors how do you keep your competitors who are sore from losing from creating a government witch hunt on you? Who was behind the MSFT anti-trust stuff? Consumers? Not. The price of Windows has been the same for 25 years???it was their competitors. Same goes for the EU. If Google (or anyone) is abusing their powers then customers should revolt, not the government.

    • Posted By: GTraynor @ 05/26/2009 3:12:31 PM

      Aww, poor baby. Maybe if we saw more visibility of pre-installed Linux machines on the shelf in order to compete with Winbloze, then we wouldn't have the one-sided, lopsided situation we have today. Try going into any Best Buy and see if you can find a machine with Linux pre-installed on it. I doubt you will, which is typical and why Microshaft need to be investigated and maybe broke up into little pieces. They need a lot more than a financial wrist slap.

      • Posted By: marleyg @ 05/26/2009 3:26:04 PM

        Why can't you get LINUX pre-installed on a PC in Best Buy? Well, they tried that with NetBooks (all of them shipped with LINUX to lower the price) and Windows XP quickly overtook the market. Why? XP is more expensive... and like 10 years old???perhaps it is because LINUX has a horrible user experience and no business model behind it. You get what you pay for???ever had a free haircut? Not so good???

        • Posted By: GTraynor @ 05/26/2009 6:30:43 PM

          They got XP on there because a) Netbooks don't have enough power to run bloatware Vista -- b) XP is being given away for practically free because M$ is desperate not to lose market share, even after they swore to retire XP a few months back and not issue new OEM licenses unless you paid a $75 fee up front and went out of your way to ask for it. and c) Microshaft has had a shady history, dealing with pressuring OEMs to exclude other OSes from being pre-installed with new hardware. It's no wonder you don't see Linux on the shelves. I hope the Obama Administration's Department Of Justice picks up where the Clinton Administration left off. The EC is also having a go at Microshaft's predatory monopoly status as well. It's good to see the monopolists in Redmond sweat.

  • Posted By: miwmsmd @ 05/26/2009 5:44:44 PM

    The true evil genius behind Google's advertising is that it's search RESULTS look very much like its search ADS. So, let's say you search 'drivers' for a particular printer. You will get the printer's company, the printer's driver, and anything having to do with the printer's name. So, if a company wants you to purchase access to otherwise FREE drivers, there it will be, offering to install the driver with its software, for a price. You don't have to purchase the driver if you get to the printer makers' website, but you WON'T find the printer maker's website on the first page, or maybe the second page. This is the true evil of Google--it controls whatever you might associate to--and, if you are not careful, you will PAY.

  • Posted By: hlgns763 @ 05/26/2009 5:21:18 PM

    there is only one answer to this problem...

    george bush did it. and dick cheney too. that bastard.

  • Posted By: newsweek_user_cm @ 05/26/2009 4:24:39 PM

    Google is more than a little bit evil. They are no better than Microsoft has been about their software monopoly on the market. I am a paid search advertising professional and have worked all angles of the business from client to specialist at one of the primary engines. Google employs tactics to pit advertisers against one another to create bid inflation and drive out certain advertisers. Yes, it???s an auction but it???s also finely manipulated by Google using "algorithm" changes and preferential treatment to certain advertisers within their specific advertising channel.
    Google has done a very good job with their branding making them a household name. The strength in their branding and perception has fooled people into thinking they play fair. The do not and I for one, would love to see them fall.

  • Posted By: newsweek_user_cm @ 05/26/2009 4:24:21 PM

    Google is more than a little bit evil. They are no better than Microsoft has been about their software monopoly on the market. I am a paid search advertising professional and have worked all angles of the business from client to specialist at one of the primary engines. Google employs tactics to pit advertisers against one another to create bid inflation and drive out certain advertisers. Yes, it???s an auction but it???s also finely manipulated by Google using "algorithm" changes and preferential treatment to certain advertisers within their specific advertising channel.
    Google has done a very good job with their branding making them a household name. The strength in their branding and perception has fooled people into thinking they play fair. The do not and I for one, would love to see them fall.

  • Posted By: ChasFL @ 05/26/2009 4:10:58 PM

    Google is now playing the old "Earn $1 an envelope stuffing envelopes" scam from years back. They tell you if you pay $2 for the "kit", they will pay you for posting advertisement websites on Google. So you send away for the kit and find out all it was was a way to show you that if you start your own internet business, they will show you how to get your website closer to the top of the advertisement chain (That's right, pay Google more, and your website gets closer to the the top of the search engine for your business keywords searched).
    Now this article is saying that you might not even be getting what you payed for. Jeeeez!!!

    Et tu Google???

  • Posted By: jlewsp4 @ 05/26/2009 3:59:28 PM

    The best haircut I ever had was free.
    The Linux core is more stable and less restrictive than any Win core, but MS has spent a lot of money on their slick-interface.
    It is only a matter of time before a Linux interface is refined enough to be considered as user-friendly as MS.
    What will happen then? Better bet MS will adopt Sun Microsystem's business model and offer a free version of their OS to sell add-ons to.
    Also, if MS tries to charge Vista owners to upgrade to Windows 7, I'm going to travel to MS Headquarted and throw feces at their building.

  • Posted By: janeand @ 05/26/2009 3:29:19 PM

    Google is fine! They have Americans working for them! The government should look at Microsoft more closely for a variety of reasons during this tough economic time, mainly for the thousands of H1B visas they issue annually. Obama better make Microsoft employ more Americans! Because at the moment for every one person that gets laid of in Redmond, Washington by Microsoft, there's about 3-4 Indians/Chinese people that get hired overseas. This is the company that the government should really be focusing on -- not Google, sheesh.

  • Posted By: GTraynor @ 05/26/2009 3:06:18 PM

    The author seems to imply that the case against Miscoshaft's Windoze is over and past history. Well I doubt it. I believe the Obama Administration will be looking at them again and wondering why 95% of all PCs sold in the U.S. have Windoze pre-installed on them. Maybe they can tell us why Linux has been left out due to exclusionary agreements, the very kind the Clinton Administration was investigating until Bush & his pals won the election. Windoze had eight years of a free ride. Now the piper's coming back again. Good.

  • Posted By: Metropony @ 05/26/2009 2:35:46 PM

    In response to the comments....its important to keep in mind that the justice department is "sniffing around," not filing charges, and there is a HUGE difference in their rise in the market compared to Microsofts. Google built their empire against much competition, and there is no argument that people have a choice of which search engine to go to. Microsoft's products were more or less thrown in your face and there wasn't much room for others to compete. In terms of a monopoly on online advertising costs, if the overall market wasn't where Google says it is.....wouldn't you see a huge price difference in the PPC costs on Yahoo, MSN, AOL, and the like? They are all pretty much in line.

  • Posted By: otterone @ 05/26/2009 2:17:53 PM

    With the opening I though this going to be about eBay.

  • Posted By: TLA2000 @ 05/26/2009 2:06:55 PM

    Boy I'm glad this article and others like it are being written. Am I the only one who's been starting to get a very Terminator/Skynet feeling about Google lately?

    Someone needs to publicly address their borderline-gimmick Adsense program as well. I know plenty of webmasters who have come forth with stories of Google using their sites for their ads, promising a share in revenue, then turning around and withholding payments from webmasters on unspecified grounds of "invalid activity" when they've in fact done nothing wrong. Unless you're some big LLC site, they rape the little guy left and right, swallow them whole, then move on to the next eager applicant. It's a legitimate gig, or scam, operating boldfaced under an otherwise respected corporation.

  • Posted By: TLA2000 @ 05/26/2009 2:06:36 PM

    Boy I'm glad this article and others like it are being written. Am I the only one who's been starting to get a very Terminator/Skynet feeling about Google lately?

    Someone needs to publicly address their borderline-gimmick Adsense program as well. I know plenty of webmasters who have come forth with stories of Google using their sites for their ads, promising a share in revenue, then turning around and withholding payments from webmasters on unspecified grounds of "invalid activity" when they've in fact done nothing wrong. Unless you're some big LLC site, they rape the little guy left and right, swallow them whole, then move on to the next eager applicant. It's a legitimate gig, or scam, operating boldfaced under an otherwise respected corporation.

  • Posted By: bobfontaine @ 05/26/2009 1:16:02 PM

    Lets not forget the OTHER side of that revenue stream. As I understand it, close to half of Google's paid clicks come from that little code that millions of website owners place on their websites, where Google makes money regardless of how the end user got to those sites. Yet Google doesn't disclose to it's publishers (such as myself) how much revenue was actually earned from my websites. Not the gross, not the percentages, nothing. So they ahve a built in means to increase revenues as wiil, simply by choosing to keep more.

  • Posted By: marleyg @ 05/26/2009 12:44:56 PM

    Don't you love how question marks are substitued for commas on these posts

    • Posted By: Dave in NM @ 05/26/2009 12:59:00 PM

      You forgot the comma at the end of your question.

  • Posted By: web1marketing @ 05/26/2009 12:53:27 PM

    It would have been nice of the author to dig a little deeper before blasting the hidden auction. It works in the advertiser's favor if they are remotely sophisticated. Yahoo, who bought the company that pioneered search advertising many years ago, finally transitioned from open bids to a very similar system long after Microsoft and Google showed that it was much better, avoiding many troublesome problems like bid inflation, "pinning", and other things that made bidding very volatile and expensive.

  • Posted By: jstavene @ 05/26/2009 11:23:23 AM

    I think Google provides a important service in a honest way. unlike Microsoft and Ithink google is more neutral then most Ihave seen especially around election time, unlike MSFT, I also think that making a determination on how applicable the buyer is to the key word they wish to purchase is good, seems they all do this ,,, so is the complaint simply that they aretoo big? hmm I say that about MSFT, Yahoo on the other hand,,, a bit too commwodner where they are now,, or lycos? ercialized for my taste,,, and not very robust searching anyway,,, then there was ask.com,,,,, or lycos, or? hmm MSFT used to say they had better programming, but they did steal, the GUI n mouse idea basicly from apple, or was it XEROX, (I think a copier company originaly either way) Ithink patent laws and trademark laws are hurting us all, they lock a idea a single inovation for years or decades, and force everyone to pay extortionist fees,,, I think if we want to find the root of monoploies it starts with who has the most or best lawyers?????

    • Posted By: lmhnw @ 05/26/2009 11:48:43 AM

      Microsoft copied it from Apple, who got the idea from Xerox.

Reply

Report Abuse

Enter comments if any for reporting abuse