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What EU-Google Advertising Antitrust Charges Mean for the FTC

Of the three EU antitrust cases against Google (search bias in shopping, Android tying, and soon search-advertising-tying), the expected new search-advertising case -- which focuses on how Google has long contractually required websites to use Google’s search advertising if they use Google search -- could be the hardest EU-Google antitrust case for the FTC to ignore, for the reasons below.

Summary of Why It’s Hard for FTC to Ignore the EU Search-Advertising Antitrust Case:

1. The FTC has been following the EU’s antitrust lead.

2. The FTC’s Google 2012 staff report agrees with the EU’s conclusion on search advertising.

3. The DOJ threatened a 2008 monopolization case over Google’s search advertising syndication.

Why Google Can’t Buy Yahoo’s Search & Advertising Patents

Given that Google bought Motorola for its patents to protect itself from patent litigation, many assume Alphabet-Google to be a likely bidder and buyer of Yahoo’s reported sale of its portfolio of ~3,000 1990s search, advertising and ecommerce patents.

Au contraire, big antitrust vulnerabilities and a decade of Googlian hostility to the intellectual property rights of competitors effectively rule them out of this Yahoo auction.

Google’s lawyers have to appreciate that Google bidding on Yahoo’s patents would self-shine antitrust spotlights exactly where Google does not want them shined, and would attract attention to Google’s ignominious pattern of disrespect for the property of competitors and the bloody trail of intellectual property infringement lawsuits Google has uniquely provoked over the last fourteen years.

Why Google can’t buy Yahoo’s search, advertising & ecommerce patents.

Google-Android’s Strategy to Monopolize Home Digital Information & Services

Every company and industry competitor currently serving and targeting the digital home marketplace doesn’t know they are largely surrounded, but they are.

If one organizes and pieces together the many related things Google intimated at its I/O developer conference last month, especially about Google’s big advantage in conversational AI voice, with what we already know about what Google has already achieved and is doing, what kind of Google digital home strategy becomes clear?

The assembled pieces showcase a discernible big picture of an exceptionally comprehensive Google-Android strategy to try and monopolize the integrated connectivity of home automation (i.e. digital information, products and services) over time via: its strong advantage in conversational AI voice interface, Android dominance, and its proliferating OS tentacles -- very much like Google did with mobile search and search-related information, products, and services in increasingly dominating consumer digital services over the last decade.

Goobris: Google Expecting Less Privacy Regulation than its Competitors

Why does the company that by far collects the most private information that the FCC claims it wants to protect, and that also has the worst consumer privacy protection record with the FTC, (Google), get 99% exempted from the telecom and cable privacy protections expected of telephone, broadband, cable and satellite providers?  

Is it the same reason, that the edge platforms with much more gatekeeper power and private data collection opportunity than ISPs somehow warrant no FCC privacy regulation? (See info-graphic here; explanation here.)

How Oracle v. Google Magnifies Google’s Android Antitrust Vulnerabilities

1 Oracle v. Google case + 1 EU Android Tying Case = 3

While the U.S. Oracle v. Google Java API copyright case that will recommence in public court this month has been completely independent of the EU Google-Android antitrust case, in sovereign jurisdiction, type of law, legal process, timetable and alleged offense, these two cases ultimately could have huge, much underappreciated implications for each other, because they are both about the same thing -- purposeful illegal actions that Google chose to do to extend its search-related dominance into mobile via  Android.

Summary

Must-Read: Intercept’s Exposé on Google’s Remarkably Close White House Ties

The Intercept’s exposé The Android Administration: Google’s Remarkably Close Relationship With the Obama White House, in Two Charts” is an eye-opening, must-read for anyone interested in Google’s outsized power and political influence, or in the integrity of the U.S. Government’s public accountability and impartiality in administering justice and the federal policymaking process -- free of commercial and financial conflicts of interest.  

7 Top Takeaways from EU’s Google-Android-Tying Charges

The European Commission has charged Alphabet-Google with abusing its dominance in the market for “general Internet search services,” by implementing an Android “strategy of mobile devices to preserve and strengthen its dominance in general Internet search.” The EU objects to a variety of secret Google contract conditions to manufacturer licenses to leverage the dominant (>90% share) Android OS to secretly restrict and foreclose competition in ways that ultimately harm consumer choice and innovation. The EU effectively charged that Google has already anticompetitively extended its >90% dominance in search to dominance in the >90% share of the “licensable smart mobile operating system,” and to dominance in the >90% share of the “app stores for the Android” market.  

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.

AllVid: FCC-Sponsored Piracy Would Extend Google’s Monopoly & Monopsony

Google is the only major corporation publicly pressuring the FCC to require that all owners of proprietary video programming rights give away their valuable video property for free to Google and other companies online.

It is telling that to date no other major corporation has been willing to risk their brand publicly advocating for FCC-sponsored piracy to forcibly redistribute corporate wealth from Big Content to FCC-BFF-Google.

The evidence in this analysis will show that Google is the only entity in the world that has both the long-stated mission, i.e. “to organize the world’s information and make it universally accessible and useful,” and the global monopoly power and corporate functional capabilities to fully commercially exploit this FCC-sponsored piracy proposal.

What EU & Google Signals Are Telling Us about EU-Google Antitrust Outcomes

The recent comments and actions of the EU’s top antitrust enforcer, combined with recent drastic actions by Google, speak volumes about the tough EU antitrust outcomes Google faces going forward. While the Brussels-based media appreciate the serious antitrust risk Google faces in the EU, it is not clear whether the U.S.-based media or investors are paying much attention -- yet.

In a nutshell, recent signals from the EU and Google suggest that the conventional wisdom in the U.S. and among investors is underestimating the real antitrust risk to Google in imagining there ultimately will be a relatively benign settlement or just a fine, and not appreciating the EU’s likely Prohibition Decision remedy will impose a non-discrimination/neutrality duty against anticompetitive self-dealing, which could result in significant to substantial changes to Google’s business model and operations -- potentially globally.

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