Finding Fault With the Low, Low Price of Android
bonch writes "Google's accusation of patent abuse toward its competitors has generated many responses, some of which have asked whether Android's free price is anti-competitive. Drawing comparisons to Microsoft's antitrust trial, in which they were accused of giving away Internet Explorer to drive competitors out of the browser market, Thurrott argues that Google's rivals are 'leveling the playing field' through patent fees by removing an artificial price advantage funded by monopoly search revenues. 'One could argue that Google is using its dominance in search advertising to unfairly gain entry into another market by giving that new product, Android, away for free. Does this remind you of any famous antitrust case?'"
Its free. Lets be happy about it.
Oh noes, its ruining my ability to sell stuff. Lets attack their patents to ruin it. Its got nothing to do with Microsoft's antitrust trial - that was something bundled with a sold product - this is something free which Google is using to sell something else (apps for example). Its kinda like how certain open source stuff works.
Android is open source.
I assume that the author quoted in the summary refers to Internet Explorer, which was bundled and forced down the user's throats, as you could not even uninstall it or the Operating System would stop working.
How can this be compared to Android, which is just an open source project? CHOICE remains, as far as I know.
Haven't we seen enough of these paid shills over the years to understand their point of view? They get paid money by Microsoft to influence opinion so that Microsoft can sell more stuff. They are corrupted by the money, so it isn't an honest opinion. Therefore, why pay attention?
I suppose some variety from the usual Florian dreck is nice, though.
HBI's Law: Frequency of calling others Nazis is directly correlated with the likelihood of the accuser being Communist.
Isn't this a free-as-in-beer vs. free-as-in-speech argument? I may be way off-beam here but I think Android is open source and IE isn't. So no, this would be nothing like the MS antitrust case.
sustainable living
While Android may be free (if you exclude the price to use the android market) it is still very different from the Internet Explorer case. Internet Explorer is bundled with the Windows operating system, so its installed already whether you like it or not. Android is a choice by the manufacturer and a relatively cheaper choice then the competition. Manufacturers CHOOSE to use Android, and consumers CHOOSE to use Google for their search queries. Nobody is being forced into anything.
Thank you, Slashdot, for informing me of a website I never, ever, want to read again.
Agreed. I'll believe these claims about Android being anti-competitive when those same accusers also declare intention to sue entities like Canonical, who also give away superior software for free on a regular basis.
Let q be a radix > 1. I am in ur base-q, killing 10 d00ds.
Who cares what Google's prime business is? The similarities to the MS antitrust case are nonexistent.
Dog is my co-pilot.
google is using money that they receive for providing a valuable proprietary service based in part around free software to then fund free software development.
microsoft use the money they receive for providing technologically multi-man-century-backed proprietary products and services to further fund the development of technologically multi-man-century-backed proprietary products and services.
whilst i don't like much of what google is doing (including releasing software under the Apache2 Software License, and including restricting access to free software it develops and then dumping it on people, in bazaar-like "like it or lump it" fashion and in many cases overwhelming unfunded free software communities to pick up the dog's dinner mess that google's developers made in "secret, bazaar-like fashion") it is nothing compared to what microsoft is doing.
you literally cannot compare the two.
Lets make collecting rain illegal. Since rain is free, it's anti-competitive. That way, us water utility companies can make more money.
Microsoft used their browser to try to lock in the market. They developed client-side CGI that only works in their browser and developed server-side software that works best with IE and uses those proprietary extensions.
Google does not engage in lock-in with Android; non-Android and non-Google browsers work with Google services essentially as well as the browsers they provide, and their browsers (both the Android-integrated browser and Chrome) work on competitors' services. I can use Yahoo or Bing or Mapquest or whatever just as well as I can use Google.
Google provides a lot of services. Internet search, Maps, E-mail, Productivity, Browser, Mobile OS, and the like, but they don't require one to use all. Certainly there's some question as to whether they're in a little hot water for providing links to their maps or other services through their search, but Yahoo and Bing do the same thing for that, so we'll see.
Do not look into laser with remaining eye.
Let's not vilify Android because it is free. Let's stop prosecuting companies for competing. Let everyone build the best products they can at the best price they can offer and let the cards fall where they may. In this way consumers will have the most choice and the least expense for the products they choose to purchase. Or... we can continue with the patents malarkey so that no small company will want to innovate and we will end up with an oligarchy of only the biggest companies with the most lawyers. I promise you won't be happy about that.
Microsoft is still using revenue from Windows and Office to fund its other adventures, including Windows Phone.
Apple's virtual monopoly with iPod/iTunes funded (and led to) the iPhone/iPad/App Store.
Also, I would argue that Google has a clearly stated plan to make money from Android while continuing to give it away: advertising. So, it's not like they are giving it away to achieve dominance and will then start charging for it.
"One could argue that Google is using its dominance in search advertising to unfairly gain entry into another market by giving that new product, Android, away for free. Does this remind you of any famous antitrust case?'"
No, because Google isn't forcing OEMs into signing exclusive contracts that forbid them using other software stacks.
and they're still stalling 3.0 source release.
ELOI, ELOI, LAMA SABACHTHANI!?
> "'One could argue that Google is using its dominance in search advertising to unfairly gain entry into another market by giving that new product, Android, away for free. Does this remind you of any famous antitrust case?'"
Yes.
And Google's competitors are also abusing flaws in the patent system.
Having one set of abuses to correct another set of abuses doesn't mean that Google's competitors are good, or that the patent system is working. They are all opportunistic and sociopathic. You have identified a second kind of distortion which is harmful to free market capitalism. Both flaws should be addressed at the system level, and these companies that are abusing these flaws should all be castigated.
Stop-Prism.org: Opt Out of Surveillance
This entire proposal rests on the assumption that Google has a monopoly in search. Does it? The latest figures show Google Search has 63.6% of the market. What percentage of the desktop market did Microsoft have in the nineties when it decided to tie Windows and IE together (in violation of its 1994 settlement with the DOJ)? I'm sure it was at least 90%.. Apparently it was news in Dec 1998 when Windows marketshare dropped below 90% "for the first time"...
There's a big difference between Google's 63% and Microsoft's >90%.
It would seem to be a new legal theory regarding the nature of leveraging a monopoly. Presumably the notion is that the money earned from the monopoly is the leverage, not the monopoly per se. However, last I checked, Google doesn't have a monopoly on search.
If this were to pass the smell test, I imagine any sufficiently large company that has ever run a loss leader would be guilty.
Note I'm not a lawyer, I just like giving bad advice in general.
In today's world there is only one meaning of the world 'anticompetitive', and it means: didn't pay the politicians enough to be left alone to do business as one sees fit.
So what if somebody is giving away free product? How about a free OS altogether? If they can do this and not go out of business, they should and consumers are the winners, not losers in this game. If the competition can't do anything about it, then it sucks for the competition. If the competition goes out of business because of it, it sucks for them. If eventually the company has to push prices above 0, this will just signal the market that there is a possibility to compete on non-zero price again.
You can't handle the truth.
However, what is a MUCH FAIRER comparison is the iphone and the apple app store. Want to use a different app store, sorry, your out of luck (relatively speaking). Andoird's open-ness is actually driving markets (amazon app store being an example of that) where Apple and iphone (or anyone else for that matter) are very actively trying to shut them down.
Its also not fair to say android is free. Open source, yes, but if you want to produce a phone thats useful, you need those (licensed) google apps.
Actually, calling andoird an open-source project itself is even erroneous, google have done a truely terrible job of keeping up with their "WE'RE ANDROID AND WE'RE OPEN SOURCE rah rah rah" moniker - still no AOSP for 3.x and we're up to 3.2 already - if there is one thing that'll make me depart the android shores for something else its that one huge chunk of, lets call it for what it is, lies that really do piss me off.
The reality is, google really have disappointed in the android open source project to the point where it should be called the "android, we'll maybe open-source it if we feel like it, yeah we know we call it open source, but its not really" project. And before anyone comments saying "android isnt licensed under the gpl" or some such a big reminder to you here. Google sold android to the community (as a concept) as an open-source platform - not a "here's some kernel drivers you might need for some irrelevant arm platforms" open source project. They have truly let the community down in this instance and for that they should be thoroughly ashamed. We're also not talking about the google market, maps, etc that google license, those are definitely closed-source and thats googles fair and just choice.
I don't think the article or summary writer actually know how anti-trust works. IE being free wasn't what caused the anti-trust case, it was the fact it was bundled to a product that was already considered a very strong monopoly in the market.
About the only thing that could make Android an anti-trust case is if advertisers were forced to use an android phone to create and administer their ads on Google's services.
As mentioned, android is not bundled with every google search you perform. This is not leveraging the monopoly, merely running a side business. I think ideally google would like to see android generate revenue for them in non-search arenas.
Paul Thurott is an unabashed shill. Nothing to see here move along
...and also give Android away free.
Warning: this article may contain humor, sarcasm, parody, and perhaps even irony. Read at your own risk.
Well, the android OS is free. But selling a phone is based on features and price. In theory if you create a superior product people will be it. Apples product is good but I feel my android is far better. It doesn't lock me into ITunes and Apples monopoly. This was a selling point for me. Even with the "buy the phone at a discount with 2 year commitment price" my android, admittedly with small screen, cost me $29.99 USD. My last IPhone was $300 to buy with the same commitment. Quality matters of course, and a lot of people will buy apple because its a brand the like even regardless of the price, I don't see it as being unfair. Apple just needs to learn to compete on the playing field cause lets face it. At this point the real question is "Is Apple hurt by Andriod?" Yes it is, but there prices weren't so bloated they would sell more. Good product plus competitive pricing is the way to keep balance. the phones still cost money, its the OS that's free but I don't see Apple charging money for IOS updates either? You buy the phone, you get the operating system with it. For me who hardly uses the smart phone spending 300 dollars on a phone seems silly. the Android I have fits in my pockets, Find a woman who can say the IPhone fits in theirs. It is not going to happen. the IPhone is a good product but Apple greed gets in the way as is evidenced by Apples behavior toward Samsung as for late but they have a long history of suing everyone that moves. Apple doesn't want to compete on a level playing field, They want the whole market. diversity is good, If everyone has an IPhone Apple wont be very motivated to add new features. Even in recent releasess, the IPhone 3 with a 1.3 megapixel camera, or the IPhone 4 only being 3G they are not being properly motivated. I think andriod helps motivate them to upgrade.
--- Always remember. 99.36% of all statistics are inaccurate.
That was never the issue. The issue was that microsoft was using their windows monopoly to push IE so if you bought Windows you got IE no matter if you wanted it or not. Google isn't using a product monopoly to force you to use android.. Completely different. Nobody cared if MS used money to push their software.. they do that all the time and nobody says a word.
Canonical is headquartered in Great Britain, and I assume it has most of its assets there. In that case, it'd be slightly harder to sue Canonical on U.S. competition law grounds than, say, Red Hat.
Another thing that caused the anti-trust case was the fact that IE not only checked to see if it was the default browser, it checked to see if it was the only browser. In the early days, it would even check for Netscape and un-install it if it found that it was installed.
So does Android install itself on an iPhone, and un-install IOS?
Android is an OS, not an application. A better comparison would be computers with the OS pre-installed. Shouldn't MS, Apple, Sun, IBM and HP joined forces and sued Commadore and Atari for providing a free OS and attempting to drive each of them out of the market by providing a free OS that was built into the hardware without providing an alternative OS?
Great civilizations have lived and died on false theories. Don't mess up mine with a few facts.
But they required their browser be located on the desktop and no one else's or the OEMs didn't get the extra $$ from Microsoft.
IE6 was the version of IE released after the browser wars. IE 2 was useless - it came on my NT4 CD and crashed on startup on a clean install. IE3 was okay. I had it and Netscape installed, and usually preferred IE3. IE4 was bad, but not quite as bad as Netscape Communicator 4, which was just plain horrible. IE5 was what IE4 should have been, and Netscape was dead at this point. IE6 cleaned up IE5 a bit. And then we had a long wait for Mozilla to get into a useable state.
I am TheRaven on Soylent News
Shame there is already a precedent that makes his trolling totally irrelevant
http://en.wikipedia.org/wiki/Wallace_v._International_Business_Machines_Corp._et_al.
Patent System the current system will just encourage companies to develop off shore, especially small ones and startups, that if it does not stop them in their tracks before even stepping in market. How can many companies hold thousands of miniature patents like that? thousands of patents sound absurd. I wonder if this level of "innovation" exist in any other sector....
Agreed. I'll believe these claims about Android being anti-competitive when those same accusers also declare intention to sue entities like Canonical, who also give away superior software for free on a regular basis.
Well, given the huge percentage of the desktop computer market Ubuntu's managed to corner, that should happen any day now. /sarcasm
#DeleteChrome
If Android is anticompetitive, then Bing most certainly is. Microsoft entered online search and advertising for the sole purpose of using its OS monopoly and buckets of cash to deprive others (specifically Google) of revenue. Proof? Losing more than $8Billion over the past 6 years isn't "trying to get a foot-hold". It's dumping. It's bundling. It's taking a dump in the pool so that nobody can swim there anymore.
Slashdot: come for the pedantry, stay for the condescension.
"Drawing comparisons to Microsoft's antitrust trial, in which they were accused of giving away Internet Explorer to drive competitors out of the browser market," The difference between the two is MS was using it's dominant position in the OS market to install IE free and by default and "forcing" OEM's to do so, google not only did not have a dominant position in the mobile market, it barely had one at all.
I was interested in reading the full article, until I read the second sentence and found that this is more BS ramblings by pro-MS fanboy Paul Thurrott. This article is useless, as are all articles by him.
Why won't Google just use the Force?
Then that would be yes, it's their fault. Who's fault could it be?
Help stamp out iliturcy.
I can't wait until Windows Mobile gets some traction. "Verizon and HTC recommend Windows Phone 12!" on every page.
Help stamp out iliturcy.
Didnt someone attempt to sue Linus Torvalds, Stallman, the FSF and others years ago claiming Linux to be anticompetative? Saying he was selling his small time OS and sales went down due to people choosing Linux instead?
Make SELinux enforcing again!
Yes. Microsoft's operating system at the time sucked multiple body parts, so other operating system publishers could make an operating system that sucked only ass and call it an improvement.
It would make a great story, but... in reality, Android being a LINUX OS... is, well... free. So, it's not like Google is making something that costs & the giving the OS for less than it costed them. In other words - they ain't takin' any financial loss from the product in order to gain marketplace. If that was the case, then it could be an unfair advantage, but it's not the case is it?
"There has grown in the minds of certain groups in this country the idea that just because a man or corporation has made a profit out of the public for a number of years, the government and the courts are charged with guaranteeing such a profit in the future, even in the face of changing circumstances and contrary to public interest. This strange doctrine is supported by neither statute or common law. Neither corporations or individuals have the right to come into court and ask that the clock of history be stopped, or turned back." - Robert A Heinlein, Life-Line, 1939.
Help stamp out iliturcy.
Whatever the actual issues are, reading armchair legal opinions combined with dim and distorted memories of the MS antitrust case just hurts.
Some day, someone will reply to a /. post with something like "I don't know, that's interesting but it's way beyond my area of expertise. Does anyone have an informed opinion?" And then, of course, the world will end.
If I wanted a sig I would have filled in that stupid box.
Errr - do you actually pay for iOS? If so, where can you buy it? How much for an iphone without it? What's that, you can't buy an iPhone without it? Intersting...
dnuof eruc rof aixelsid
stupid ass comparison IMO. Windows is the monopoly and IE was forced on computer hardware vendors to include that with the operating system. There is no comparison with users making the choice to use Google search and the free/OSS Android version( minus Google apps and app store ).
LoB
"Anyone who stands out in the middle of a road looks like roadkill to me." --Linus
This is a shill article because the lie is so fucking obvious to detect. First of all, Android is made by the Open Handset Alliance. Google is of course a very major player in it same as Nokia was a major player in Symbian BUT it is called an alliance for a reason. Google doesn't work on it alone.
Second, and this is the big whopper. Where do you think MS gets the money from to fund WM7? If it had to charge full market price the handsets would cost a fortune because it would have to pay for ALL the losses of all the previous windows mobile versions. The constant rename campaigns alone would set you back a hundred bucks per license.
MS is using its monopoly on the desktop and office software market to fund its other operations, from the original x-box (which was economically a dismall failure) to MS phone software which so far has NOT had the kind of sales to pay for its own development costs.
And Apple? Same deal, no upstart company could have done the iPod whose profits were used to then launch the iPhone and then the iPad. The major advantage Apple always had over smaller players is that thanks to its massive reserves it could place orders so large that it got discounts nobody else gets making their players cheaper by comparison (MB for MB).
So basically Google and a LOT of other players pooled their resources to create a product they could all benefit from and made it available for "free". So? MS used its monopoly resources to create a product nobody else can use for free. Apple used it fast wealth to create a product nobody else can use or even create gadgets for without paying them and they often just refuse to license stuff.
Who is being the bad guy again? Oh of course, Google for being less evil. What people forget about Googles "Don't be evil" slogan is that doesn't say "Be good" it just means don't be as evil as the rest... and in American Business, that is a pretty low standard.
MMO Quests are like orgasms:
You may solo them, I prefer them in a group.
I'm surprised the article isn't tagged troll.
are any of the competitors prevented from doing ANYthing with android ?
no.
case closed.
noone has to endure higher prices because a bastardly private corporation wants to push its proprietary shit on customers from the price the want.
Read radical news here
First. Microsoft was not blamed because IE was free. The problems were 1) preinstallation on Windows systems 2) impossibility to uninstall. And I would like to add that as a consequence the entire web was held back for YEARS. Look at how fast it has been changing since Firebird first managed to jeopardize Microsoft's web browser monopoly.
Second. Seriously, winsupersite.com?
Third. The guy says that the statement from Google is contradictory because they both say that the patents are "bogus" and that "these deals are likely to draw regulatory scrutiny, and this patent bubble will pop" and that they would have liked to acquire them in order to avoid legal litigation. But that makes perfectly sense if you consider the horrible US patent system, and it is the system's fault not Google. Actually, that is the whole point that is made in the statement, which the winsupersite.com guy fails to get. Moreover, he thinks that Google should have included discussion over the specific patents in the statement, which is something I guess NO COMPANY WOULD EVER DO, in sight of litigation.
This is going to go down with the "why yes it is definitely better for the consumer if Apple bans cross compilers no I;ll keep my mouth shut once Apple reverse that decision a couple of months later".
It is close to impossible to describe the blatant hypocrisy of railing against Lodsys (which Daring Fireball has done) but then criticising Google's position on patents as being monopolistic and anti-competitive.
Breathtaking.
Puzzle Daze is now my job
Did anyone actually read the article? because everybody seems intent on trashing it for saying this is like MS antitrust when the mainstay of the article is about googles whining that 'bogus' patents are being drawn up against it. Now are apple and MS patent trolling? Who knows! Google certainly havent gone in to detail about it so it has to go to the courts. This isnt some small startup getting picked on by big corporations this is a _massive_ company with the majority of the market share and they are acting like they are being picked on! Whats more they are getting huge support over this when, should google genuinely be infringing on patents, they have the power to immediately destroy any potential for profit on the ideas by distributing it immediately across a vast network. Thats the point of the article, all of that is what 95% of the text was about.
You may think its fine for google to distribute things for free patent or not, especially when the source of the features are from equally big players. Thats a different discussion. You may think the patent system is horribly broken. (well durr.) Also a different discussion. However, if you think google is the kid being bullied by the nasty profiteering giants then youve really got to get a grip, but of course you should know this because its just parroting what the article said...
The comparison to MS anti-trust was daft and the cases are very different but the sites a freakin windows super site. So many calling him a windows shill as if he doesnt pretty much advertise his allegiances... If you didnt go in to it in the knowledge that there was going to be some bias you are being painfully naive. (Incidentally that goes for _any_ site that unashamedly labels themselves after the product they support.) That doesnt mean a lot of the points made werent valid. Google arnt the underdog any more, havent been for some time.
[Note, let me pre-empt a strawman or two by pointing out that neither his post nor mine are saying MS and Apple are any better than Google in this situation.]
I'm so enjoying this. I had high hopes for Google but they seem to be as full of shit as anybody and now they're whining because things aren't going their way. Me thinks Android is in for some rough waters.
What this sounds like is a Major Retail Chain moving into a new city and selling their products at a loss to drive the Mom and Pop shops out of business. Google is effectively shutting down the OS Market to new competitors and innovation. HTC, et al are able to sell their phones at the same price as Apple because they don't have to pay for their OS.
So the question becomes when MS & RIM leave the smartphone market, what will Google do?
A pro-Microsoft, anti-Google article on a website called winsupersite.com (Super Site for Windows), yeah... no bias there.
~Syberz
It's these Android commies that are ruining our capitalist paradise!
Is it anti-competitive to use the revenues from one business area to give away products in another business area? Everyone here seems to be saying it is fine to do. To me it is not as clear. If Google did not make a ton of money in ad revenues there is no way they could support Android OS for free. The only reason Google gives away Android is to increase those ad revenues. It is hard to compete with free especially when the free product is produced by a competitive company. It may be there are valid reasons this business model is "fair". But no one is addressing the root issue.
One of the anti-competitive tricks Standard Oil used was predatory pricing. They would set up shop in a town and sell gas at or below cost, driving any other gas stations out of business. http://en.wikipedia.org/wiki/Predatory_pricing And yes, Microsoft was guilty of this as well by giving IE away for free and destroying Netscape's source of revenue.
There might be a leg to stand on in this case against Google. Does Google actually make any money off Android after all the money they invested in it?
On the other hand, what competition does Android even have as a licensed product? Apple does not license iOS. RIM does not license Blackberry OS. Nokia is more or less abandoning Symbian in the face of competiton and moving to Windows Phone 7. I don't think HP licenses WebOS, although they probably would given a chance. PalmOS faltered before Android hit the market, as I recall.
So by my count, only Microsoft, Nokia, or HP might have grounds to fight Google on the basis that they are giving away a product that undermines their positions in the mobile OS market. HP could argue that Android being free is preventing them from licensing WebOS to other tablet makers. Nokia might be able to argue that Android's pricing (or lack thereof) was making it cost prohibitive to continue maintaining and licensing Symbian. But then, Nokia was really late to the smartphone market space and I don't think they ever put forth a real effort. I think that would make it hard for them to argue that it was Android's pricing that pushed them out of the market. Microsoft might have a argument as far as pricing and cost competitiveness, but I figure that any move by Microsoft to push Google on anti-trust grounds wound be a public relations disaster.
So yes, I think Google might be vulnerable on paper, but I just don't think anything will come of it since Apple and RIM are not in competition with Google, and it would be a PR nightmare for Microsoft.
Microsoft sold you Windows (the monopoly?) and forced IE on you. Google (or whoever) is selling you an Android phone and then letting you use Google Search (the monopoly?) I don't see how you can compare the two? Even if you still think its unfair, then ah well lets just push an OTA with a "what search engine do you want?" and be done with it. Oh wait... my android already gave me that choice...
Try harder. I have no external bias toward Google, although I do use some of their stuff. I'm anti-patent, not pro-Google.