Antitrust

Find an FTC-Google Antitrust Primer here that asks and answers the Top Ten Questions about:

• Google's admission it has received a subpoena and is under formal investigation by the Federal Trade Commission for antitrust violations; and
• What the FTC is likely investigating and thinking, given that the FTC cannot comment on an ongoing investigation.

This primer is based on a combination of new analysis and an update of the best of four years of Google antitrust research, which can be found at: www.Googleopoly.net.

The Top Ten Q&A are:

While the big Google antitrust news is that the FTC is about to launch a formal sweeping antitrust investigation of Google, which will play out over time almost entirely behind the scenes, the big public-facing news for Google antitrust is that Google's current CEO Larry Page and former CEO Eric Schmidt are refusing to publicly testify before the Senate Judiciary Antitrust Subcommittee per reports.

There are several reasons this refusal to publicly testify is exceptionally problematic for Google.

First, Google loudly proclaims that they have done nothing wrong, that everything they do benefits users and promotes innovation, that competition is one click away, and that they have free speech rights to edit their search results as they see fit.

Evidence continues to mount that Google's management and supervision of its Android operating system is out-of-control when it comes to protecting privacy and security.

• Google's corporate ethos that it is better to "ask for forgiveness than permission" increasingly means Android has no privacy by design and hence less security for users by default.
• Requiring and respecting the need for permission and authorization is a bedrock truism of IT security -- and the evidence below increasingly indicates that Google has a deep aversion to that IT security truism.

Consider the growing pattern of Google's default design and behavior that maximizes collection of private information, which inherently puts users at greater security risk.

First, and profoundly disturbing, is a new TechRepublic revelation in a post by security blogger Donovan Colbert.

In setting up his new Android-based tablet, Mr. Colbert discovered that the Android operating system by default, i.e. without permission, automatically collected and implemented encrytion key passcodes to automatically gain access to private networks without the permission of the user. In Mr. Colbert's own words:

Google's reported purchase of Admeld, described by TechCrunch as "an advertising optimization platform for publishers," appears to be another clever gaming of the antitrust enforcement process by Google to reinforce and extend its core search advertising monopoly.

• Google appears to believe they have figured out their monopolization-extension formula via antitrust enforcement, and are now in "lather, rinse and repeat" mode.

As I explained in formally opposing Google's acquisition of DoubleClick in 2007, which I believed would help quickly tip Google to monopoly (which it did) by allowing Google to buy the roughly third of user, advertiser and publisher relationships that they did not have, antitrust enforcers focused myopically on the market of the acquired company and missed the monopolization-extension significance and effect of the purchase on substantially augmenting the core Google search advertising monopoly.

Google's exceptionally clever gaming of the antitrust enforcement process here, is a relatively simple and powerful maneuver that only Google can do, because only Google has the near perfect market inside information that its search advertising monopoly provides.

The Rural Cellular Association’s opposition to the AT&T/T-Mobile acquisition puts a spotlight on the un-sustainability of the analog rural cellular model that is on the wrong side of broadband change.

• The clear but unspoken subtext of the RCA’s opposition is their recognition that their current subsidized model of rural cellular providers is fundamentally ill-equipped for the competitive broadband era.
• Simply, the RCA is quixotically trying to drag the anchor of an inefficiently and unsustainably subsidized analog business model into the efficient and competitive broadband Internet future – a recipe for losing the future.

Importantly, most of the RCA’s problems exist completely separate from this transaction.

FreePress' radical anti-business, anti-capitalism politics lead it to make up or contort facts and analogies in order to promote its world view of a publicly-owned and regulated Internet commons.

In FreePress' latest opposition to the AT&T-T-Mobile merger, FreePress continues to nonsensically analogize this merger with the Ma Bell monopoly.

My new Huffington Post op-ed: Big Brother Inc., tells the story of how Google has become a more intrusive and effective "Big Brother" than even George Orwell imagined in "Nineteen Eighty-Four."

• My Huff Post Tech post on the world's #1 blog shows how Google's 24-7-365 omni-tracking enables Google to know what you want, think, believe, say, read, write, watch, and intend to do.

Google's serial disrespect of privacy is a central theme of my new book: "Search & Destroy Why You Can't Trust Google Inc."

• See www.SearchAndDestroyBook.com for the different ways you can buy the book.

With reports of the FTC's looming antitrust investigation of Google, it is highly-relevant that Google now has ~93.7% of U.S. revenue share of search advertising and that Google has taken ~26% of the search advertising revenue share that it did not have a year ago.

• Google continues to relentlessly gobble up massive search advertising revenue share from its only significant competitors, Yahoo and Microsoft (which have combined forces in search in the last year), in part because:
  • Google's relevant search revenues are 24x bigger than Yahoo's and 39x bigger that Microsoft's; and
  • Google is growing its huge search revenue base so much faster -- +27% to Yahoo's -19% and Microsoft's +14%.
    • (These revenue share calculations are relatively easy to do -- they are explained in detail at the end of this post.)

Many do not realize that antitrust authorities already believe that Google is a monopoly, because the most commonly cited market share numbers in the media are from ComScore, which tracks share of searches not search advertising revenue share.

My new Forbes' op-ed: Google Disregards the Law, tells the sordid story behind today's story of Google apparently agreeing to settle a criminal investigation with the Department of Justice for ~$500m for promoting and accepting advertising from illegal online pharmacies.

• The op-ed sadly chronicles that this latest law-breaking by Google is part of a well-established pattern of disregard for the rule of law.
• If one cannot trust a public Fortune 100 company to obey the law, one cannot trust them overall as I explain in much great detail in my new book "Search & Destroy Why You Can't Trust Google Inc."
  • See: www.SearchAndDestroyBook.com for the different ways you can buy the book.

The Washington Times published my op-ed on why you can't trust Google Inc., which highlights two of the main themes, privacy and property rights, of my new book: "Search & Destroy Why You Can't Trust Google Inc."

• Please see the op-ed here.
• Please see my book site here.