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How the Internet Cartel Won the Internet and The Internet Competition Myth

Summary: The substantial evidence catalogued here provides proof of the Internet’s cartelization, extreme concentration, winner-take-all tendencies, and mythical competition. The public data shows that the tacit Internet cartel of Google, Amazon and Facebook is 7-8 times more concentrated than the top three offline companies and that the top ten Internet economy companies are >10 times more concentrated than the top ten offline economy companies.

Public data that Google, Amazon, and Facebook have acquired ~350 potential competitors and the Internet Association overall has acquired ~900 potential competitors, indicates that the apparent cartelization of Internet companies’ investment, acquisition, and innovation processes ensure no innovative “garage startup” has a plausible competitive opportunity to seriously threaten the Internet cartel’s dominance.

Public data also ironically shows that almost all the Internet Association’s members are anti-competitively threatened by one of more of the Google, Amazon, or Facebook, winner-take-all online onslaughts.

U.S. antitrust authorities have enabled a cartelized and extremely concentrated Internet by taking their eye off the purpose of antitrust law -- protecting the process of competition, by first protecting the process of innovation by dominant online platforms.

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NetCompetition: FCC BDS Deregulation Will Spur Infrastructure Investment

 

FOR IMMEDIATE RELEASE, March 23, 2017, Contact:  Scott Cleland 703-217-2407

FCC Chairman Pai’s Proposal to Deregulate Competitive Business Data Services Will Accelerate Private Investment and Deployment of Fiber & 5G Gigabit Mobile Broadband      

WASHINGTON D.C. – The following may be attributed to Scott Cleland, Chairman of NetCompetition:

 

“Kudos to FCC Chairman Pai for clearly understanding the business, economic, and investment, realities and challenges, of multi-billion dollar private investments in infrastructure; and purposefully organizing the FCC to better encourage broadband infrastructure deployment quickly to be part of the solution to America’s economic growth and job creation needs.

“Chairman Pai knows one of the best ways for the FCC to promote private investment in infrastructure and advance 5G broadband innovation is to encourage facilities-based broadband competition in the business market, by permanently stopping FCC rate regulation of the long, fully-competitive, fiber-based, business data market, and ending most all FCC rate regulation of the antiquated copper-based business data market, except in the minority of counties or areas where there still may be insufficient competition.”

“Let the investing, building, and deploying of the Nation’s next generation, fiber and 5G broadband networks begin -- soonest!”

 

 

NETCompetition.org is a pro-competition e-forum representing broadband interests.

Google out to steal from Australians – My Op-ed in The Australian

Please don’t miss my op-ed on Google in the Australian: “Google out to steal from Australians.

As Googleopoly has done around much of the world for many years, Google is now twisting arms in Australia’s government to provide Google with blanket protection from Australians’ copyright infringement lawsuits against Google for aiding and abetting in the piracy of Australians’ copyrighted content.

The piece makes fun of Google’s claims that without protection, Google won’t have the financial incentive to innovate.

 

Pai’s FCC is rebooting broadband facilities competition and 5G investment

 

Please don’t miss my latest The Hill op-ed: “Pai’s FCC is rebooting broadband facilities competition and 5G investment.”

 

It uncovers what is important underneath the focus on Title II net neutrality.

 

The Trust Ramifications of an EU-Google Search Bias Conviction

The Sunday Telegraph reports that the EU is poised to fine Google an EU record ~€3b for “web search monopoly abuse” and that “Google will be banned from continuing to manipulate search results to favour itself and harm rivals.

Assuming this occurs in the reported June-July timeframe, and just like the EU’s 2015 Statement of Objections charged, the long-term ramifications for Google will be much broader and more serious than most appreciate.

NetCompetition Statement & Comments on FCC’s Anticompetitive AllVid NPRM

FCC’s AllVid NPRM Is Anticompetitive, Anticompetitive, Anticompetitive

 

WASHINGTON D.C. – The following quotes are based on NetCompetition’s submitted comments on the FCC’s AllVid NPRM and may be attributed to Scott Cleland, Chairman of NetCompetition:

“Think for a moment. Would anyone think it “pro-competitive” if a government agency mandated an “Unlock the Big Box Stores” ruling so that WalMart, Target, or Best Buy could no longer install effective doors, locks, security guards or anti-theft devices on their store perimeters to protect the value of their inventory, all so that Google, Amazon, or eBay could take it for free and then profit from selling it online?”

“The companies that comprise the ~$200b pay TV industry are the video programming functional equivalent of Big Box stores, and the FCC’s AllVid NPRM is the functional equivalent of a looters pardon.”

“Consider how the FCC’s “Unlock the Box” looters’ mantra is profoundly anticompetitive and destructive.

The Obvious Google-Android Antitrust Case the DOJ & FTC Are Ignoring

Awkward.

EU antitrust chief Margrethe Vestager -- who formally has charged Google with abusing its search monopoly, and who also is formally investigating Google’s alleged contractual tying of its monopoly search app to create a monopoly Android operating system -- speaks Friday at the ABA antitrust spring meeting in D.C. on a panel with DOJ antitrust chief William Baer and FTC Chairwoman Edith Ramirez, at the awkward juncture when the EU is escalating its antitrust prosecution of Google while America’s DOJ and FTC apparently are ignoring the obvious antitrust case they know they have against Google.

In a nutshell, the obvious antitrust case against Google is this: the DOJ and FTC have long established Google is a monopoly demanding antitrust vigilance; U.S v. Microsoft settled that a licensed OS market definition excluding Apple is reasonable and that tying a monopoly OS to a strategic app harms consumers and innovation; Google’s contractual tying of its monopoly search to a nascent Android OS is a mirror image of what DOJ already proved monopolistic in U.S. v. Microsoft; Google apparently has monopolized mobile search and search advertising and prompted its only competitors, Yahoo and Microsoft Bing, to give up seriously competing with Google; and now the potential harms to consumers and innovation are escalating as Google is attempting to extend its Android mobile OS monopoly economy-wide to monopolize the Internet of Things.

The Net Neutrality Zero Rating Inquisition vs. the FCC

Historically accurate or not, the “Spanish Inquisition” is a well-known metaphor in literature for a group of intolerant elites that demanded orthodoxy from people, under threat of extreme consequences for heresy.

The twenty first century’s new technocratic elites, who politically made up net neutrality policy over the last fifteen years, are now sadly trying to dictate net neutrality orthodoxy on all the people of the world, whether or not they use the Internet.

These net neutrality absolutists are now accusing innovators of Internet “zero rating” plans, i.e. toll-free data plans, of net neutrality heresy, which must be punished severely with PR torture and banishment, in order to set an example for the masses of what happens to those who dare to challenge the church of net neutrality absolutism.

Recently in India, today’s modern day leaders of the Zero Rating Inquisition, Access Now activists, have demonized Facebook for the net neutrality heresy of offering a free stripped-down version of Internet access called “Free Basics” to the roughly billion Indians who can’t afford Internet access.

A rational person would say Facebook’s Free Basics offering is great and a very helpful innovation, because it’s so similar to the good of a library, school, or hospital that offers free services to the poor.

However, the net neutrality absolutists, who claim to be champions of free speech, are incensed that Facebook would empower a type of Internet free speech that is not pre-approved by them.

America’s Bipartisan Spectrum Opportunity – My Daily Caller Op-ed

Please don’t miss my latest Daily Caller op-ed, “America’s Bipartisan Spectrum Opportunity.”

  • It spotlights the huge opportunity for Congress and the Administration to work together on a bipartisan basis to get much needed radio spectrum reallocated for licensed and un-licensed use soonest.

 

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Q&A One Pager Debunking Net Neutrality Myths