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Competition

Debunking Edge Competition Myth Predicate in FCC Title II Broadband Order – FCC Comments

SUMMARY:

In 2015, the FCC’s Title II Open Internet broadband order was predicated on a demonstrably false central competitive premise: that the Internet’s edge was competitive while the broadband Internet core was not competitive. The facts prove the opposite.

The 2015 FCC’s competition premise is myth.

While there is plenty of information in the record, and in the July 17 comments, that broadband is  competitive, until now there has been little data and research on the overall competitiveness of the Internet edge providers, save for NetCompetition’s July 17th comments that showed how concentrated the Internet edge is using the Internet Association as a proxy.

To further rebut comments that were predicated on the demonstrably false central premise that the Internet’s edge is competitive, NetCompetition submits additional Internet competition research below.

Why Amazon and Google Are Two Peas from the Same Monopolist Pod

Summary: Amazon’s monopolization ambitions, strategies, and tying tactics are eerily like Google’s.  Both these companies likely have not earned their respective dominances purely on merit, but also via illegal anti-competitive behaviors.

At a minimum, Amazon’s proposed acquisition of WholeFoods warrants an FTC “second request” for information, i.e. a fuller antitrust investigation of whether the acquisition could “substantially lessen competition” in any implicated relevant markets.

The Internet Association Proves Extreme U.S. Internet Market Concentration

Those who think the U.S. Internet market is competitive, and not extremely concentrated, need to read on.

In a nutshell, for the first time, publicly available evidence shows that the cumulative effect of well-known “winner-take-all” platforms (WTAPs) Google, Amazon, Facebook, and Microsoft, is a “four-winners-take-all Internet sector.” Four different dominant platforms collectively command ~80% of overall Internet market share in revenues, new absolute annual revenues generated, market capitalization, and employees.

Imagine if the 94% of the economy that is offline-based, were as extremely concentrated as the 6% of the economy that is online-based/the Internet sector, per the Internet Association.

That would be an offline economy with basically one information company, one sharing company, one retailer, and one business software company, that collectively commanded 80% revenue share of the 94% of the economy that is offline based with ~4,000 publicly traded companies.

Trump Administration Implications for Google Antitrust in EU, US & Markets

Conclusions:

Most of what we have learned in the five months since the election indicates that the Trump Administration is not going to be Google’s antitrust advocate and protector like the Obama Administration effectively was from 2013-2016, in de facto shutting down any real U.S. antitrust scrutiny of Google, and in turn implicitly discouraging antitrust enforcement of Google in the EU and around the world.  

This antitrust enforcement sea change has three big picture implications: for the EU, for the U.S., and for markets.

FCC Should Sunset Set-Top Box Provision Because Market is Fully Competitive

House Energy and Commerce Committee Republicans formally asked FCC Chairman Agit Pai to close the docket on the set-top box proceeding because it is no longer under active consideration, and because it “remains an unnecessary regulatory threat to the content creation and distribution industries” and casts a “shadow over investment and innovation.”

This is a wise, pro-competitive, pro-property rights, and good government request from Congress to the new Pai FCC.

The FCC should efficiently utilize this decision opportunity to employ the statutory sunset provision in the law to permanently sunset and remove this unnecessary and serious regulatory threat to competition, copyrighted contractual content and its creation, investment, and innovation.

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.

 

NetCompetition Statement on Election, Communications Law/Policy & FCC

FOR IMMEDIATE RELEASE, November 9, 2016, Contact:  Scott Cleland 703-217-2407

 

Election Provides Opportunity to Modernize Communications and Privacy Laws; And to Ensure a Pro-competition FCC that Fully Respects the Rule of Law, Facts, Due Process, Property Rights and Contracts

 

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.

Why Did Google & Facebook Stop Competing With Each Other?

The evidence shows that Google & Facebook -- by far the world’s most dominant Internet gatekeepers – are not an Internet advertising “duopoly,” but worse, two separate Internet advertising monopoly platforms, one in search advertising and another in social media advertising.

That’s because search and social media advertising are not competitive substitutes for each other, but are proving to be synergistic advertising complements to each other in company marketing campaigns, because generally search advertising excels at lead generation and local business visibility while social media advertising generally excels at building brand awareness and interactivity with consumers.

Tellingly, after beginning to directly compete in social in 2011 and in search in 2013, Google and Facebook both abruptly, coincidentally, and effectively stopped competing directly with each other in both the search and social media markets in 2014.

Apparently, they either jointly agreed in 2014 to divide up the marketplace and no longer directly compete with each other to maximize their exceptional mobile growth and profitability; or they concluded independently -- from their initial directly competitive forays into the other’s core markets -- that the other commanded unbeatable monopoly network effects, so not directly competing with each other would maximize their exceptional mobile growth and profitability.     

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Q&A One Pager Debunking Net Neutrality Myths