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Antitrust

Twitter Evidence Confirms Goobook Ad Cartel Is Crushing Competition

Summary: The de facto Goobook ad cartel is quickly crushing its only current online social advertising platform competitor, Twitter. Twitter’s failing business is the proverbial canary in the coal mine that should bring attention to the imminent danger of this apparent cartel to the future commercial viability of the broader online content marketplace.

Practically it means U.S. antitrust authorities’ lax antitrust enforcement has facilitated the emergence of twin colluding monopolies in search and social advertising. The result is a de facto and unaccountable new media cartel, the 21st century Google/Facebook Fourth Estate, that is anti-competitively destroying and supplanting the original, old media, Fourth Estate, and that is the central facilitator of algorithmic-automated “fake news.”      

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The Google-Facebook Online Ad Cartel is the Biggest Competition Problem

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

America’s Indefensible Media Concentration Double Standard

Apparently America does not have “equal justice under law” when it comes to media concentration limits.

Seldom can one find a starker commercial example of unequal legal, law enforcement, and regulatory treatment of very similar commercial activities than that between old media and Internet/new media companies concerning media concentration and antitrust enforcement.

Both legacy old media companies and Internet/new media companies are in the communications business, own and/or produce media of some type, and distribute media in different physical ways, consumption formats, and time/situation dimensions.

Please see this one-page graphic that illustrates how America’s media concentration double standard treats similar old and new media companies completely dissimilarly, and how it results in a predictable stark market share dichotomy.  

Ultimately old media concentration has been limited by the traditional antitrust limits that apply to all industries and companies over the years.

That’s no longer true for Big-Internet companies like Google and Facebook.

How Internet Commons Policies Lessen Growth Jobs & Security – Daily Caller

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.

 

How Google Is Anti-employment Anti-property & Pro-regulation

Google’s unprecedented Obama Administration influence and its self-serving anti-employment, anti-property, and pro-regulatory policy agenda, are on a collision course with the job-creating, pro-property, deregulatory Trump Administration growth agenda.

Keep watch to see who adapts to whom and how.

I.  Google’s Unprecedented Lobbying Influence

Current Alphabet-Google Chairman Eric Schmidt enjoys the privilege of being the only corporate leader of a publicly-traded company on the President’s nineteen member Council of Advisors on Science and Technology.

Top 5 Worst Antitrust Enforcement Decisions in the 21st Century

Google is in the process of submitting its defenses to the EU antitrust charges that Google abuses its >90% dominance in search, mobile, and advertising. At the same time a new U.S. Administration soon will take a fresh look at U.S. antitrust enforcement, much like the EU did for Europe in late 2014.

So how did EU v. Google become the most consequential antitrust case of the young 21st century? 

Google Fiber Pivots to Be Wireless ISP & FCC Spectrum Access Administrator

Don’t miss Google’s enduring big wireless ISP ambitions in the midst of all the noise and confusion about the future of Google Fiber.

And also don’t miss Google’s grand ambitions to organize and dominate America’s spectrum-related information via its certification as a key FCC Spectrum Access System Administrator, given how little public attention it has gotten to date.

Google continues to pivot its Internet access ambitions away from deploying capital-expensive fiber technology deployment to deploying much-less-capital-expensive unlicensed wireless access technology, which does not require digging and burying fiber, and which may only use free unlicensed spectrum.

The Key Competitive Facts behind the AT&T-Time-Warner Acquisition

This analysis of the competitive facts underlying AT&T’s acquisition of Time Warner is an outgrowth of my discussion of the acquisition on NPR’s Diane Rehm Show this morning with Cecilia Kang of the New York Times and John Bergmeyer of Public Knowledge. The show can be heard here.

My main point was that the competitive facts are the best friend of this transaction.

I elaborate on that conclusion below.

The key facts lead me to believe the transaction should and will be approved, most likely by the DOJ, because of: the antitrust-benign competitive share facts in all the relevant markets; the antitrust precedents that constrain the DOJ’s ability to successfully challenge in court a vertical merger with these benign shares; and the companies have signaled they understand that if any legitimate competitive concerns arise they can be mitigated successfully with conditions and DOJ oversight of the transaction.    

If officials examine the competitive facts of this acquisition with an open mind and with due process, they’ll discover first impressions can be very misleading.

What No Bids for Twitter Tell Us about Google Facebook & Online Advertising

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.

Alphabet-Google

Currently, Alphabet-Google is embroiled in this century’s biggest antitrust case in the EU.

Google’s New Home/Hardware Integration Has Privacy & Antitrust Implications

Listen to Google’s CEO Sundar Pichai when he says Google foresees a transformation from a “mobile-first world to an AI-first world,” because that is where Google-Android’s ~90% market dominance in mobile, search, and search advertising, is going to take the world -- like it or not.

As you will see, an “AI-first world” is also a “privacy-second world” and an “antitrust-cursed world.”

Just like Google’s unmatched data collection enabled it to figure out how to position itself to dominate the mobile Internet with Android’s contractual-tying over the last eight years, Google’s unmatched data collection currently is enabling it to figure out how to perfectly vertically-integrate a comprehensive-suite of home-related, products and services to dominate home-digital information and services with its just announced products: Google Home, Google WiFi, Allo, Google Assistant, Google Pixel, etc.

Naturally this Google “data-driven,” omni-integration will have big privacy and antitrust implications.

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Q&A One Pager Debunking Net Neutrality Myths