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How Oracle v. Google Magnifies Google’s Android Antitrust Vulnerabilities

1 Oracle v. Google case + 1 EU Android Tying Case = 3

While the U.S. Oracle v. Google Java API copyright case that will recommence in public court this month has been completely independent of the EU Google-Android antitrust case, in sovereign jurisdiction, type of law, legal process, timetable and alleged offense, these two cases ultimately could have huge, much underappreciated implications for each other, because they are both about the same thing -- purposeful illegal actions that Google chose to do to extend its search-related dominance into mobile via  Android.

Summary

NetCompetition Statement & Comments on FCC’s Anticompetitive AllVid NPRM

FCC’s AllVid NPRM Is Anticompetitive, Anticompetitive, Anticompetitive

 

WASHINGTON D.C. – The following quotes are based on NetCompetition’s submitted comments on the FCC’s AllVid NPRM and may be attributed to Scott Cleland, Chairman of NetCompetition:

“Think for a moment. Would anyone think it “pro-competitive” if a government agency mandated an “Unlock the Big Box Stores” ruling so that WalMart, Target, or Best Buy could no longer install effective doors, locks, security guards or anti-theft devices on their store perimeters to protect the value of their inventory, all so that Google, Amazon, or eBay could take it for free and then profit from selling it online?”

“The companies that comprise the ~$200b pay TV industry are the video programming functional equivalent of Big Box stores, and the FCC’s AllVid NPRM is the functional equivalent of a looters pardon.”

“Consider how the FCC’s “Unlock the Box” looters’ mantra is profoundly anticompetitive and destructive.

AllVid Deja-Vu: Google-YouTube’s Forcing Video to be Open to Piracy Again

The FCC’s AllVid proposal is déjà vu. We have seen Google-YouTube’s piracy-as-negotiating-leverage MO in action before.

Top Takeaways from Google’s Appeals Court Loss to MS State AG Jim Hood

For the last year, Google was above state law in the U.S.; fortunately, it no longer is.

The U.S. Fifth Circuit Court of Appeals just ordered dismissal of the Machiavellian preliminary injunction Google won in Federal Court over a year ago that squashed a 2014 Mississippi State Attorney General subpoena and state law enforcement investigation of Google’s alleged facilitation of “dangerous and illegal activities through its online platforms.”

Forty State AGs backed MS AG Jim Hood in Court because the Federal injunction that Google won effectively neutered all State AGs from investigating or prosecuting Google for most any alleged Google violation of most any State consumer protection law.

Simply, the Appeals Court ruled that Google faced no “irreparable injury” in having to comply with the MS State AG’s broad subpoena, and that “[T]he normal course of state criminal prosecutions cannot be disrupted or blocked on the basis of charges which in the last analysis amount to nothing more than speculation about the future.”

AllVid: FCC-Sponsored Piracy Would Extend Google’s Monopoly & Monopsony

Google is the only major corporation publicly pressuring the FCC to require that all owners of proprietary video programming rights give away their valuable video property for free to Google and other companies online.

It is telling that to date no other major corporation has been willing to risk their brand publicly advocating for FCC-sponsored piracy to forcibly redistribute corporate wealth from Big Content to FCC-BFF-Google.

The evidence in this analysis will show that Google is the only entity in the world that has both the long-stated mission, i.e. “to organize the world’s information and make it universally accessible and useful,” and the global monopoly power and corporate functional capabilities to fully commercially exploit this FCC-sponsored piracy proposal.

The FCC’s Googleopoly Gatekeeper Navigation Device Set-up

It’s the FCC-forcing-proprietary-video-to-be-free-to-Google stupid!

That’s a Jim Carville-esque paraphrase of the FCC’s AllVid commercial navigation device proposal to focus the mind.

The FCC spins its AllVid proposal as pro-competition in isolation when in reality the evidence will prove it profoundly anticompetitive overall.

FCC’s AllVid Proposal Is Really The Great Google Ad Grab

While the PR cover story of the FCC’s AllVid proposal may be about more consumer choice and competition to reduce the cost of cable set-top boxes, don’t be fooled.

In announcing it, the FCC Chairman admits there’s already consumer choice aplenty: “American consumers enjoy unprecedented choice in how they view entertainment, news and sports programming. You can pretty much watch what you want, where you want, when you want.”

And the AllVid proposal is not about saving consumers money.

If it were, the FCC would not be shunning the obvious, best and cheapest solution of replacing the need for a set-top box entirely, by modernly and naturally transitioning them to the sector norm of easily-downloadable, cheap/free apps.

Leaked Google Financials Tie EU Search and Android Antitrust Cases Together

Summary:  Google Android’s >70% monopoly-size gross profit margins were made public for the first time when Android’s 2014 summary financials were disclosed in the Oracle v. Google copyright case (as evidence of Android’s commercial success to rebut Google’s claim that Android’s unauthorized use of Oracle’s Java APIs was “fair use” not commercial activity.) Combining this newly disclosed information with what we already know, Android likely generated a little less than a third of Alphabet’s 2015 revenues, but over a third of its 2015 gross profits. It is now clearer that the formal EU antitrust investigation of Android contractually tying Google’s dominant search to gain >80% share of the world’s smartphones will result in another EU Statement of Objections that could eclipse the current EU abuse of search dominance case in antitrust liability over time.  

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Alphabet’s Amoral Attitude and Acts

Summary

Does Alphabet Inc. -- arguably the world’s largest organization, with two billion plus users, most all the world’s information, most of the world’s top applications, limitless global ambitions, limited accountability, and self-proclaimed “don’t be evil” moral authority -- actually “do the right thing” as Alphabet publicly professes?  (Alphabet Inc. is the restructured company formerly known as Google Inc.)

If it matters to people that their leaders do what they say, to governments that corporate leaders obey the law, to the media that public leaders are honest to the public, and to the public that the leaders they trust are trustworthy, then this attempt to bring accountability to Alphabet-Google’s near unprecedented leadership, branding, and investment value has merit.

Accumulating evidence of Google’s amoral unaccountability certainly has merit and value to EU law enforcement and to U.S. State Attorneys General law enforcement, because it goes to whether or not Alphabet can be trusted to operate its business honestly and legally on its own; and to be trusted to make honest representations to law enforcement and the public.   

Google’s “Going Dark” Encryption Leadership Threatens Sovereign Security

Google is unique in its leadership, plans, and global marketpower to accelerate the majority of all global Web traffic “going dark,” i.e. encrypted by default. Google’s “going dark” leadership seriously threatens  to neuter sovereign nations’ law-enforcement and intelligence capabilities to investigate and prevent terrorism and crime going forward.

Google is not the only U.S. Internet company endangering the national security of many countries by “going dark” via end-to-end corporate encryption in an environment of exceptional terrorist risk -- Apple has been self-servingly irresponsible as well.

Nevertheless, Google warrants the spotlight and primary focus here on “going dark” for three big reasons.

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Q&A One Pager Debunking Net Neutrality Myths