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Antitrust

"Google-aganda:" Do as I say not as I do" See great Network World piece

Johna Till Johnson of Network World, has got Google's number in the article "Net Neutrality? Google, go first!"

  • "Forget "don't be evil" -- Google's real motto is: "Just trust us (and pay no attention to the man behind the curtain).""

    "Sorry, fellas, I'm not the trusting sort. And I always worry about the man behind the curtain. The reality behind the propaganda is this: The "open" company's considerable fortunes are based around the world's most proprietary search engine. And as for "neutral" -- try Googling Google, and you may notice something surprising: very few negative comments on the company pop up. Odd, no?"

Googleopoly -- can you say "predatory cross-subsidization"?

For those following the FTC's Google-DoubleClick merger review (and whether my prediction in my Googleopoly.net white paper that the FTC will block this merger is on the mark), this link to an article called "Google's Killer App" is a current and real life case study of how Google anti-competitively forecloses competition in the markets adjacent to them.

  • Or in other words, this article raises the question: can "free" ever be a bad thing or anti-competitive?

This excellent case study article is by Brandt Dainow, a web analytics competitor to Google who has conceded that:

"Open Hypocrisy!" eBay-Skype "Blocks" application competition

 It is clear that "open access" is not a true "principle" for eBay-Skype, but a self-serving scheme by eBay to cloak their obvious "private interest" behind the greater "public interest."

  • If "open access" was a true "principle" to eBay-skype,they would abide by it in their own business, and lead by example, but alas they don't.
  • They hypocritically do the exact opposite.

Open access to eBay-Skype is a blatant double standard where eBay wants government to regulate their competitors to eBay-Skype's commercial advantage, but do not want the principle applied to eBay-Skype.

What are the specific anti-competitive effects of Google-DoubleClick?

The antitrust relevance of yesterday's New York Times reported quote: " ...marketers increasingly want to combine their purchases of search and display advertising." has really quite profound implications for the pending Google-Double-Click deal.

 

What that quote does is zero in on what really matters to FTC antitrust authorities -- how would the transaction actually change the current competitive dynamic, or more specifically, how would the merger "substantially lessen competition," which is the legal standard for approving/disapproving mergers.

Googleopoly evidence growing #1: Yahoo's search/display problem

Google tries to maintain that search and display advertising are separate markets and not direct competitors.

It appears Yahoo would beg to differ.

Today's New York Times reported:

  • "...Yahoo recently shook up its ad sales force, combining into a single unit its search advertising and display advertising." 

  • "Mr. Barry said that the reorganization would probably help Yahoo in the long term, as marketers increasingly want to combine their purchases of search and display advertising." [bold added]

Great WSJ Editorial on Google: "Sort of Evil" Will consumer groups tune in?

Please don't miss Holman Jenkin's great Wall Street Journal editorial on Google: "Sort of Evil."

I particularly like his new term for net neutrality/open access regulation: "business model chauvinism." Dead on.

  • Google is lobbying for laws and regulations which will advantage their business model and further their dominance of Internet advertising, and also to "block, degrade and impair" any other business model from competing with Google.
    • Simply, Google has a very sophisticated strategy to foreclose potential competition to Google.

He also points the spotlight on what Google is really doing in organizing groups to view broadband companies as the big public enemy for things they might do in the future, and how that conveniently distracts people from scrutinizing Google's own increasing dominance of online advertising and the business model of the Internet. 

Google surrogate CCIA lashes back against "Googleopoly" report

It didn't take long for the Empire to Strike back! Shortly after the release of Googleopoly, Ed Black, President and CEO of the Computer and Communications Industry Association, which represents Google, put out a critical press release on my Googleopoly white paper entitled:  "Merger Report Unconvincing." 

  • As I predicted on my blog this morning:"I expect to be attacked personally for my analysis and conclusions here, just like I was attacked by Bernie Ebbers and WorldCom as "the idiot Washington analyst" for having the audacity to be the only analyst in the country willing to predict, and stick to my guns, that the government would block the WorldCom-Sprint merger."

As expected they tried to discredit the messenger because they don't like the message. Standard operating procedure from my debate opponents.

Why the FTC Will Likely Block the Google-DoubleClick Merger

My detailed analysis over the last several weeks leads me to believe that the FTC is likely to block the Google-DoubleClick merger because it will enable Google to dominate online advertising and dramatically increase the opportunity for market collusion and price manipulation in the market for consumer click data, ad-performance tools, ad-brokering and ad-exchanges.

Antitrust is fact-specific and evidence-driven. To understand the true antitrust outlook for a merger one needs to become familiar with the core facts of the case. To date, media and investment coverage of this merger has been remarkably superficial.

  • The executive summary and my new 35-page white paper: "Googleopoly: the Google-DoubleClick Anti-Competitive Case" can be found at Googleopoly.net. An audio file of my conference call on this merger outlook will also be on Googleopoly.net. The analysis and conclusions are driven by pages and pages of facts and evidence.
    • The purpose of the paper is to present the detailed case theory, argumentation and evidence of why the merger is anti-competitive and harms consumers, content providers and advertisers.
    • The paper:
      • Defines the market;
      • Explains why Google-DoubleClick are competitors;
      • Explains why startups, Yahoo and Microsoft can't compete with Google in search;
      • Spotlights the four anti-competitive network effects of the merger; and
      • Shows how the merger harms consumers, content providers and advertisers.

I see three big takeaways from my white paper.

First, the more people learn about this merger the more concern they will develop.

Googleopoly conf. call Tues. July 17 11am EST on Google-DoubleClick merger

You're invited to participate in a conference call Tuesday July 17th at 11 am EST to hear a discussion of, and Q&A on, my new 35-page white paper, entitled:

I will explain how a Google Inc. (NASDAQ: GOOG) - DoubleClick merger will facilitate a de facto Internet information access monopoly, substantially lessen competition, and harm consumers, Internet content providers, and advertisers.

Pages

Q&A One Pager Debunking Net Neutrality Myths