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"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.

FCC McDowell's Great WSJ op-ed -- debunks need for new national broadband policy

Please read FCC Commissioner Robert McDowell's outstanding op-ed in the Wall Street Journal today. It eviscerates the sloppy thinking and weak evidence of net neutrality/open access proponents that are trying to manufacture a national broadband problem/crisis to justify their  new Big Government "National Broadband Policy."

This op-ed is particularly timely given the current  and tightly coordinated attempts by liberal House and Senate Democrats to establish the groundwork for an abandonment of competition and free market policies in communications and replace it with a new "National Broadband Policy" which is the liberal codeword for a Big Government-managed broadband sector.

Google "exploiting a desperate town" for more corporate welfare

You can tell a lot about the true soul of people by how they treat the vulnerable and disadvantaged; do they naturally seek to help and protect those in need or do they instinctively seek to exploit others weaknesses for their own monetary or other gain?

  • Or after a disaster, do people help with supplies, water, and a helping hand or do they opportunistically price gouge or seek to make a quick buck off of others misfortune? 

Despite Google's infamous words in its "Don't be evil" motto, its actions recently in dealing with the job-loss ravaged town of Lenoir, North Carolina gives us a sad and disappointing glimpse into the real soul of Google -- the Silicon Valley titan and leading brand in the world.

BusinessWeek just published an outstanding government/human interest story called: "The High Cost of Wooing Google" where it chronicles the story of how Google exploited the "down-on-its-luck" town of Lenoir, North Carolina with hardball negotiating tactics to extract :  "a package of tax breaks, infrastructure upgrades, and other goodies valued at $212 million over 30 years, or more than $1million for each of the 210 jobs Google said it eventually hoped to create in Lenoir."

The BusinessWeek article continued:

This is a spectrum auction Google not a policy auction! No to "OPEN Sesame!

Anyone who hasn't read Google's letter to the FCC today  on the 700 MHz auction -- you have to -- its an absolute hoot! 

  • I am amazed that a company so rich and successful in business could be so arrogant, impolitic, and ham-handed in Washington!  

First Google, despite what you may think, the US Government and FCC policy is not "for sale."  (And even if you think it is, at least try to be less obvious about your cynicism in public.)

  • Does Google actually think "committing" to a minimum bid of $4.6B in the 700 MHz auction in return for its demands for a change in the 1993 auction law is somehow acceptable behavior for a publicly-traded company?
    • Google is crassly and ham-handedly saying that their opening bid to effectively "buy" FCC policy starts at $4.6B!
    • Hello Google! You "bid" at the spectrum auction not at the FCC for policy favors. One type of "bidding" is perfectly legal the other is not.
  • As only dotcom billionaires can do, Google is disrespecting the FCC as just another type of "hired help" where it just needs to negotiate their "price."
    • Any supporters of Google should be mortified at Google's disrespect for, and cheapening of the FCC policy process. Google should be ashamed and embarassed by this crass letter and tactic.  
      • (It seems that Google is so used to buying off content providers that sue them for IP theft with "revenue sharing arrangements" that they seem to think they can buy-off whomever they want.)   

Second, the demand in their letter oozes with arrogance. Let's parse the final and operative sentence of Google's letter to see just how arrogant.

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.

Markey broadband legislation: Let no good deed go unpunished

What's wrong with this picture?

What's wrong with this picture? Nothing! 

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.

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