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Submitted by Scott Cleland on Thu, 2017-01-12 14:57
By far the biggest competition problem facing U.S. antitrust and regulatory authorities is the Goobook Ad Cartel, the unaccountable dominant chokepoint for monetizing most online news, content, products and services.
The evidence is compelling that Google and Facebook have colluded to divide up and corner the online advertising market, and consequently, have deterred competition, devalued property and work, dehumanized privacy, and depressed economic growth and employment.
This unprecedented market power and winner-take-all outcome in such a vital sector of the economy is a direct result of purposeful U.S. non-enforcement of antitrust laws for online platforms, and the lavishment of most every public policy advantage upon them that one could imagine.
Let’s first examine Google and Facebook’s massive monopolies, then their collusion, and then who is harmed and how.
Google & Facebook’s Massive Monopolies
Submitted by Scott Cleland on Mon, 2016-11-28 16:11
Please don’t miss my latest Daily Caller op-ed: “How U.S. Internet Commons Policies Lessen Growth Jobs & Security.”
It spotlights how U.S. Internet commons policies – where “free” means a price of zero and “open” means no property -- create winner-take all economic outcomes for the Netstablishment at the expense of everyone else.
Submitted by Scott Cleland on Fri, 2016-10-21 10:58
What does it tell us that no company ultimately bid to buy Twitter over the last month despite several reported brand-name interested buyers?
Twitter is the eighth-most-visited Internet site in the world; the best site in the world for real-time content; and is one of the few public companies in the marketplace that is growing revenue at a 20% annual rate – and no one even submitted a low-ball bid for Twitter? What is going on here?
Apparently, it tells us that there are only two companies in the world that could grow, leverage and monetize Twitter to make it worth roughly $20b under current circumstances – Alphabet-Google and Facebook -- and they both practically can’t buy Twitter for antitrust reasons.
Let’s analyze why.
First, Google and Facebook each individually would face unwanted serious antitrust risk.
Currently, Alphabet-Google is embroiled in this century’s biggest antitrust case in the EU.
Submitted by Scott Cleland on Mon, 2016-09-26 15:50
When a PR tactic masquerades as principle or sound policy a mess inevitably ensues.
Google and Public Knowledge, the two leading corporate and interest group entities respectively that are opposed to copyright in America, plotted that they could disguise their real intent to “unlock copyright licensing” and devalue the valuable “information flows” of the $200b a year U.S. pay TV industry, with a clever #UnlockTheBox consumer “gift”/sneak attack… just like Greeks did in the Trojan War using the purported “gift” of a huge wooden “Trojan Horse” as a trick to secretly enable soldiers hidden inside the horse to gain entry to the securely protected city of Troy.
We now know that this FCC AllVid/Set-Top-Box (STB) rulemaking was not really about unlocking set-top-boxes for consumer benefit, but predominantly about unlocking copyright licenses for the nation’s most valuable video programming – to de facto, open-force more proprietary information to be free on the Open Internet.
Submitted by Scott Cleland on Wed, 2016-09-14 19:56
How can the FCC imagine it is pro-competitive to help Google expand its search monopoly by illegally forcing the search neutrality principle that Google opposes as never justified, on competitive pay-TV providers, in order to divert pay-TV viewer traffic to piracy-friendly Google-YouTube’s 1.6 billion viewers?
Submitted by Scott Cleland on Wed, 2016-09-07 13:57
Multiple sources indicate the FCC is on path to include in its final proposed AllVid set-top box order a de facto FCC office of copyright licensing to try and politically paper over obvious policy and enforcement gaps in FCC authority.
It is further evidence that the “Unlock the Box” proponents pushing AllVid are really bent on “unlocking the copyrights, licenses, and contracts” that collectively protect $200b worth of annual video programming business, not the purported $20b set-top box business.
That’s because AllVid proponents continue to demand their initial outrageous and unlawful claim that the FCC should force the pay TV and video programmer industries to give Big Internet companies their $200b of video programming flows for free -- because the Internet wants information to be free.
The FCC’s big legitimacy problem here is that the FCC is not operating in a legal area where they can argue they are due broad court deference, because in this instance the law is very clear.
The FCC does not have the authority to force property owners to give away their copyrighted property for free or to forfeit their legal licensing or contract rights.
Submitted by Scott Cleland on Wed, 2016-08-31 10:13
FCC and FTC meet the law of unintended consequences.
A Ninth Circuit Court decision overturned an FTC enforcement action against AT&T for “throttling” broadband data speeds by definitively ruling that the FTC did not have any legal jurisdiction over AT&T (and other common carriers) because of the explicit common carrier exemption in the FTC’s core Section 5 legal authority.
Submitted by Scott Cleland on Thu, 2016-08-25 13:50
A fox should not be allowed to guard a henhouse, unless the farmer wants the fox to eat all the hens.
Neither should the world’s fiercest corporate opponent of copyright, Google, be allowed to be the FCC’s technological guard of $200b worth of annual video programming revenues, in the FCC’s AllVid Set-Top Box rulemaking, unless the FCC wants Google-YouTube and others to be able to pirate the nation’s video-programming property without paying for it.
Submitted by Scott Cleland on Mon, 2016-06-20 11:48
Are the FCC’s set-top-box proposed rules really about unlocking the set-top-box to competition or are they really about advancing Google and Public Knowledge’s real agenda – forced unlocking of the licensing and copyright protections of the underlying video programming that generates ~$200b in annual revenues?
In response to the FCC Chairman’s request for an alternative approach to the FCC’s current AllVid proposed rules, the Pay TV coalition has proposed an app-based solution that solves all of the FCC’s publicly-stated problems with cable set-top boxes.
Submitted by Scott Cleland on Fri, 2016-06-10 11:18
Given that Google bought Motorola for its patents to protect itself from patent litigation, many assume Alphabet-Google to be a likely bidder and buyer of Yahoo’s reported sale of its portfolio of ~3,000 1990s search, advertising and ecommerce patents.
Au contraire, big antitrust vulnerabilities and a decade of Googlian hostility to the intellectual property rights of competitors effectively rule them out of this Yahoo auction.
Google’s lawyers have to appreciate that Google bidding on Yahoo’s patents would self-shine antitrust spotlights exactly where Google does not want them shined, and would attract attention to Google’s ignominious pattern of disrespect for the property of competitors and the bloody trail of intellectual property infringement lawsuits Google has uniquely provoked over the last fourteen years.
Why Google can’t buy Yahoo’s search, advertising & ecommerce patents.