New Evidence Google Facebook Ad Cartel Crushing Competition Market Failing

Let’s see what a winner-take-all, market failure looks like as it is happening before our eyes.

The Goobook digital ad cartel is continuing its outsized, abnormally-fast, revenue growth on top of the largest digital ad revenue bases by far. Consequently, their few remaining platform digital advertising competitors are weakening significantly per 1Q17 earnings reporting and other information.

This is how the relevant market players did in 1Q17.

Google (which is 90% digital advertising) grew revenues at a 22% annual rate, or an absolute revenue increase of +$17b to total $95b for the last year.

Facebook (which is basically all advertising) grew revenues at a 49% annual rate, or an absolute revenue increase of +$10b to total $30b for the last year.

Google Takeaways from Trump Antitrust Chief’s Senate Confirmation Hearing

What did the Senate confirmation hearing for President Trump’s nominee to head up the DOJ Antitrust Division, Makan Delrahim, tell us that’s relevant to the biggest pending global antitrust issue -- Google?

A lot.

Google is no longer politically protected from antitrust investigation in the U.S.

Let’s learn why.

It has gone from likely to clear that Makan Delrahim, will be the antitrust lead in handling the most consequential U.S and international antitrust matters, like Google, in the Trump Administration.

The hearing affirmed Mr. Delrahim is very well-known, highly-respected, and enjoys bipartisan support on the Senate Judiciary Committee. He received bipartisan letters of endorsement from 12 previous DOJ Antitrust Chiefs and all the Commissioners he served with on the Antitrust Modernization Commission.

In addition, as Deputy White House Counsel for nominations, who also shepherded Supreme Court Nominee, Judge Neil Gorsuch, through the Senate confirmation process, he obviously enjoys the strongest trust, respect, and support from President Trump and Attorney General Sessions.

Tellingly, it is mid-May and we don’t have a nominee for FTC Chairperson.

HBO’s John Oliver needs a 'net neutrality' reality check – The Hill Op-ed

 

Please don’t miss my latest The Hill Op-ed: “HBO’s John Oliver needs a 'net neutrality' reality check.”

 

Internet giants, not broadband providers, are the top threat to consumers – The Hill Op-ed

Please don’t miss my latest The Hill Op-ed: “Internet giants, not broadband providers, are the top threat to consumers”.

 

 

FCC Chairman Pai’s Brilliant Title II Net Neutrality Checkmate Strategy

Net neutrality proponents who summarily dismiss any potential for Congress to resolve net neutrality with a legislative compromise, might want to rethink that heroic assumption after closely reading the Pai-FCC’s Title II NPRM.

Apparently, Chairman Pai has figured out a way that could overturn the FCC’s 2015 Open Internet order, and in addition, practically neuter the going-forward precedential value of the D.C. Circuit Court of Appeals’ USTelecom v. FCC decision that upheld the legality of the 2015 FCC order.

Importantly, it is the continuation of the legal validation and legitimacy of the USTelecom v. FCC decision that gives net neutrality proponents their long-term hope that they could restore a Title II net neutrality regime in the U.S. with just a simple FCC majority vote in 2021 or 2025, just like they did in 2015.

NetCompetition: Chairman Pai Doing Right Thing in the Right Way on Title II

FOR IMMEDIATE RELEASE, April 26, 2017, Contact:  Scott Cleland 703-217-2407

 

In Openly Previewing His Plans for Overturning the FCC’s 2015 Title II Open Internet Order, FCC Chairman Pai FCC is Doing the Right Thing for the Right Reasons in the Right Way, in Contrast to the Wheeler FCC Doing the Wrong Thing, for the Wrong Reasons, in the Wrong Way 

WASHINGTON D.C. – The following may be attributed to Scott Cleland, Chairman of NetCompetition: 

 

“FCC Chairman Pai is giving a clinic in FCC and regulatory leadership: in doing the right thing, i.e. starting the process of returning the FCC to the bipartisan, light regulatory, Internet approach that worked exceptionally well from 1996-2015; for the right reasons, i.e. the 2015 order was unnecessary, unwarranted and uncertain, and repealing it will promote economic growth, jobs, broadband deployment and competition; and in the right way, i.e. openly stating what the FCC will be doing and why, and promising the UNPRECEDENTED FCC TRANSPARENCY OF SHOWING A DRAFT FCC PROPOSAL TO THE PUBLIC THREE WEEKS BEFORE A PUBLIC VOTE!”

 

“If the previous FCC had not acted for the wrong reasons, i.e. because of inappropriate White House pressure, in the wrong way, i.e. claiming to be all for openness but running a non-transparent decision-making process, they would never have done the wrong thing: i.e. hyper-regulating an economically productive and competitive industry that had done nothing to warrant any regulation, let alone the strongest possible monopoly/utility regulation.”

 

 

NETCompetition.org is a pro-competition e-forum representing broadband interests.

Six definitions that are preventing consensus on net neutrality -- The Hill Op-ed

Please don’t miss my latest The Hill op-ed: “Six definitions that are preventing consensus on net neutrality.”

 

Google’s ad blocking exposes the company’s hypocrisy on net neutrality

 

Please don’t miss my latest The Hill op-ed:   Google’s ad blocking exposes the company’s hypocrisy on net neutrality” (& copyright).  

 

NetCompetition: FCC Promoting Private Over Public Infrastructure Investment

FOR IMMEDIATE RELEASE, April 20, 2017, Contact:  Scott Cleland 703-217-2407

Pai FCC is wisely spurring private broadband infrastructure investment and facilities-based competition, which is what makes America’s Internet infrastructure unique in the world, and which is the opposite of the Wheeler FCC’s broadband infrastructure policy of Title II public utility regulation and promotion of taxpayer-funded municipal broadband networks

WASHINGTON D.C. – The following may be attributed to Scott Cleland, Chairman of NetCompetition:

“In a series of consistent digital infrastructure decisions today by the Pai FCC, the important policy takeaway is a Pai-FCC laser focus on encouraging private sector infrastructure investment and facilities-based competition, a complete reversal of the Wheeler-FCC’s opposite laser focus of discouraging private broadband infrastructure investment via aggressive promotion of taxpayer-funded, municipal broadband infrastructure investment, and maximal Title II public utility regulation of competitive broadband facility providers.”

“These Pai-FCC infrastructure decisions today represent a clear return to the bipartisan 1996 Telecom Act purpose of “promoting competition and reducing regulation,” and the consistent bipartisan broadband policies of the 1997-2013 FCC’s of Senate-confirmed FCC Chairmen Kennard, Powell, Martin, and Genachowski, that all promoted facilities-based broadband competition and investment, and consistently rejected Title II utility regulation of broadband Internet access.”

Google-Russia Antitrust Deal Has Big Implications for EU Cases, Trump DOJ

There are potentially big implications for Google, complainants, and antitrust authorities around the world, from Google’s antitrust settlement with Russia’s Federal Antimonopoly Service (FAS)

FAS previously ruled officially, and was upheld by the Russian Supreme Court, that Google-Android illegally abused its dominance in forcing handset manufacturers to strongly preference Google search and other apps, as a contractual requirement to license Google’s official Android operating system.

In this settlement, Google agrees to a variety of significant Android/Chrome behavior changes that, if they work in practice as represented, will enable other search engines, like Yandex, and app developers to have significantly more competitive opportunities in Russia. The arbitration agreement is for six years and nine months and comes with a fine of ~$7.8m -- the equivalent of 46 minutes of Google’s annual revenues.

What Google gets in return, is big brand protection in that it can claim: a) the settlement was voluntary; b) there is now no more Russian official finding/legal precedent that Google is dominant or a monopoly, or has done anything wrong (even though it officially did before this superseding settlement); and c) a Google-Android antitrust settlement template that Google can shop to other countries, (that is friendly to Google in that Google knows this settlement won’t be as effective elsewhere, because other countries sans China and South Korea, do not have a material competitive mobile search offering to Google like Russia’s Yandex.)

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