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Google's Silent Monopoly
An anonymous reader writes "Isaac Garcia from Central Desktop Blog writes, 'How much does Google pay *itself* to claim the top ad position for searches relevant to its own products? Google holds the top advertisement (Adword) slot for the following key words: intranet, spreadsheet, documents, calendar, word processor, email, video, instant messenger, blog, photo sharing, online groups, maps, start page, restaurants, dining, and books...
...if you are trying to advertise a product that is competitive to Google, then you'll never be able to receive the Top Ad Position, no matter how much money you bid and spend. How different is it than MSFT placing its products (Internet Explorer) in a premium marketing position (embedded in the OS)?'"
thats an evil monopoly!
Doesn't anyone watch movies? Any company that claims to "Do No Harm" is obviously the most evil vile company of them all.
Consider: When Google grants itself the top ad slot for a search term, it denies itself the revenue of a third-party advertiser who might have paid for that slot. Thus, in a very real sense, Google pays exactly the same rate as everyone else.
caritj.org
Sounds a lot like a television channels running ads for their own shows. How often do you see NBC airing an ad for a CBS show? Is that wrong?
Nerd Rock In Progress
How much does Google pay *itself* to claim the top ad position for searches relevant to its own products?
The cost to google is loss in revenue from not being able to sell those top positions, presumably...
How hard was that?
It's a lot different, so different it's not a point of discussion, yet. There are so many alternative options for search engines out there.
I've tried many other search engines. I like that there are so many to choose from and try. And try again. But so far Google for most uses is the best first choice (for me). Google isn't forcing me to use them.
When I do use Google, I have no qualms they would ratchet up any ad placement or search results in their favor, it's their widget, and as long as it is giving me results that help me get through my research requirements,... hmmmm, not really the issue. Oh yes, abuse of monopoly.
Google isn't a monopoly. Google is dominant because they are good. They haven't stifled competition, they've created red hot innovation competition. Heck, Google has even gotten Microsoft to look like they're at least now trying to innovate.
Google's behavior is nothing like Microsoft's.... at least not yet, but additionally Google's beginnings look nothing like Microsoft's. Google emerged from a couple of people putting together cool ways of getting to information and grew that into some pretty amazing technology (do a Google and find and check out how their Google File System works -- it's amazing in its elegance, simplicity, and power). Google caught on in a world technology dominated by others and by dint of excellence have taken top spot.
As for the author's claim Google holds the top spot for the words:
I tried a bunch of these -- while I do see google as a top spot ad, it's hardly a dominant position. And there are many other sponsored links. This is nothing like the old Microsoft "don't dare put any icons or links of any competitor on any machine you sell or we won't give you license to sell Windows" fiat.
I don't care if they hold on to the top spot... I just care that the playing field remains level. I'm sure Google plays tough, but in the big picture I still hold faith Google plays fair.
Microsoft leverages their monopoly to trap you into using MSFT tools, most of which are in some way or shape flawed compared to alternatives.
So if Microsoft's tools were technologically superior to the alternatives, the behavior would be okay? I don't think so.
I don't see that Google has a monopoly on "the Internet."
No, but "the Internet" isn't a product. Google has a near-monopoly on web searches, and it is (allegedly) leveraging that monopoly to gain a competitive advantage in other industries that also happen to be web-based. Just because a product is offered on the Internet doesn't mean the product is "the Internet," and it doesn't mean that product isn't distinct from other offerings on the Internet.
Leveraging your position in the market for one product to increase your competitive advantage in the market for another product is nothing new. The problem comes when you are so dominant in Market A that leveraging that dominance in Market B would cause others to be unable to effectively compete in Market B.
The question here is whether Google is sufficiently dominant in Market A, the web search market, to be classified as a monopoly. If they are, then what they are doing could be classified as illegal abuse of that monopoly.