FTC

Apparently Google hopes to convince the new European Commission to buy into the same market predicate that it convinced Mr. Almunia to accept -- that the fast and ever-changing Internet marketplace has rendered lasting market dominance and antitrust enforcement obsolete.

Like a magician or illusionist, one can make another believe anything if they can misdirect their attention from what is really going on. 

Google’s latest misdirection ploy is to focus the media and the new EC on its new “peak” PR narrative that its search and Android dominance is at a “peak” -- with the implication that Google’s market position is fleeting and will only go down from here because fast-changing innovation and competition will naturally supplant it.

And by extension, if people accept that Google’s dominance is “peaking” then they can more easily be convinced that Google’s dominance could decrease naturally without any government intervention.

This “peak” market frame is clever misdirection because it distracts people from focusing on how Google is broadly abusing its market dominance to extend its market power into additional, adjacent, and nascent markets.

However, a new competitor or innovation can only have a chance to supplant Google, if Google does not neutralize or dominate the new competitor or innovation first.

Please don’t miss my Daily Caller op-ed here: “Net Neutrality Has Become an Industrial Policy.”

It explains how net neutrality is being exposed to be less about protecting consumers and more about “Trojan horse” political messaging to protect and subsidize Silicon Valley economic interests.

This is Part 70 of my FCC Open Internet Order Series.

***

FCC Open Internet Order Series

Part 1: The Many Vulnerabilities of an Open Internet [9-24-09]

Dear European Commission Official,

History teaches that those who do not learn from the past are doomed to repeat it.

Specifically, as the new European Commission takes charge of the mess that is the Google competition case, it is important to learn from, and not repeat, Mr. Almunia’s many big Google mistakes.  

Summary of Almunia-Google Mistakes

Google executives’ saccharine best-selling book: “How Google Works,” predictably ignores and whitewashes how Google steals to make its free model work.

This piece spotlights the likely “Post-it Child” of Google theft victims and five other theft victims that Google has stolen from using its signature MO or “Google Con.” It also links to another nineteen victims for a total of at least twenty five examples of Google’s theft and piracy. Corporate kleptomania is “How Google Works.”

Google’s mission is to organize the world’s information for free. Its business model is to generate ad revenue on only the sliver of information that users find and click on.

So Google respecting property rights – whether it is privacy, confidential information, trade secrets, copyrights, patents or trademarks – would be prohibitively expensive because their world view presumes that digitized information should be free.

History should remember Google Chairman Eric Schmidt’s speech in Berlin, “The New Gründergeist,” as the “Ich bin ein Bigfibber” speech, because of his many big fibs about Google’s antitrust and data protection problems in Europe.   

Claim: “Really, our biggest search competitor is Amazon” (not Bing or Yahoo.)

Facts: Google crawls 60 trillion unique URLs to create its search index of the world-wide-web; Amazon does not crawl or search index the world-wide-web.

Rep. Henry Waxman, Ranking Member of the House Energy and Commerce Committee, wrote the FCC to propose that the FCC, in its pending Open Internet order remand, “reclassif[y] broadband providers as telecommunications services and then using the modern [Title I] authority of section 706 to set bright-line rules to prevent blocking, throttling, and paid prioritization.”

European Commission Vice President for Competition Joaquin Almunia recently warned the European Parliament that “Microsoft was investigated [for] 16 years, which is four times as much as the Google investigation has taken, and there are more problems with Google than there were with Microsoft” per the FT article: “EU antitrust chief says Google case may be bigger than Microsoft.”

Why would the EC view Google as a bigger problem than Microsoft ever was?

[Note: Please find “Google’s WorldWideWatch over the WorldWideWeb” White Paper -- here.]

The European Commission’s 28-month-old Google search Statement of Objections is out of date and myopic.

What’s changed since the May 2012 EC-Google search settlement baseline?

Google has extended its May 2012 billion-user search dominance, into three newly billion-user dominant platforms (mobile, video, and maps), resulting in new competition complaints of abuse of dominance and new potential EC investigations – with Google’s abuse of its data dominance a common thread.  

Snowden’s NSA-revelations have changed everyone’s awareness of Internet surveillance and the vulnerability of personal data, contributing to the passage of much stronger data-protection legislation by the European Parliament and to a European High Court ruling on Europeans’ right to be forgotten.

The FTC implicitly laid down an important jurisdictional, political, and public marker against FCC reclassification of broadband as a utility, in its recent FCC filing in the FCC’s Section 706 inquiry proceeding.

Respectfully outside of the Open Internet proceeding considering whether to reclassify broadband information services as a Title II common carrier (utility) telecommunication service, the FTC officially and deftly introduced key legal facts into the overall FCC record – that deftly have the practical and legal effect of opposing FCC reclassification of broadband Internet access service as a Title II common carrier – on the record.

While a well-positioned façade of a castle can create the illusion of a fully-fortified castle, real people’s data requires more than the illusion of security; it requires real data-protection-security.  

Google’s outsize ability to create the illusion of data-protection-security is particularly apt given that Eran Feigenbaum is Google Apps Security Director by day, and also a professional magician/illusionist by night.