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Nicole Ferraro

Our Readers Declare Google Internet Monopoly #1

Written by Nicole Ferraro
4/7/2008 18 comments
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A poll last week on Internet Evolution registered results that are seemingly out of step with one Internet giant's proclamation to "do no evil."

Over 540 readers answered the question, "Which of the following Internet companies is the most dominant monopoly of the current Internet age," producing the following numbers:

Google is making it increasingly hard for us to digest its frilly mantra and its so-called "openness." By making headlines for its controversial DoubleClick acquisition and for trying to stand in the way of a MicroHoo for its own, selfish purposes, it has made a public shift from its alleged status as denouncer of all things evil to a money-making, ad-purveying, bunny-slaughtering (possibly...) machine -- and has successfully replaced Microsoft as the monopoly of the technology age.

— Nicole Ferraro, Site Editor, Internet Evolution

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dennisB
Rank: Fire starter
Friday April 11, 2008 11:27:34 AM
no ratings

I think you have it all wrong. Google is not a monopoly. Google just happens to have the best product by a wide margin. A monopoly implies that there is no reasonable choice, and that certainly isn't the case. The fact that technologically inferior companies like Microsoft and Yahoo  can't do anything competitve takes nothing away from Google. Google doesn't continue to dominate the market because they have a monopolistic position; they dominate because their product is far and wide the best available choice for consumers.

 You call Microsoft's OS a monopoly (even though its not), because its not the best OS. You simply can't say that about Google.

Lynngi
IQ Crew
Friday April 11, 2008 9:59:35 AM
no ratings

Ah.. so you think this is just a Google experience?

Non-compete agreements are standard in many industries; they are simply one more document you sign when you join a company.

In no way do they protect jobs. It's naive on the part of the Doubleclick staff to have thought so; indeed, as one lives in corporate cultures long enough, it becomes clear that a merger of companies inevitably results in "duplicative" staff being laid off. If you know your company is being bought out, look at your own job description and then compare it to the number of people who have roughly the same job description at the company that is buying yours. If they have a similar sized staff in your field ... time to look for a new job. And if you know your industry has non-compete agreements, leave your current job before you have to sign the document at the new company. 

  

Nicole Ferraro
IQ Crew
Friday April 11, 2008 9:48:06 AM
no ratings

Yes, a bit.

Here's a new example.

Lynngi
IQ Crew
Wednesday April 9, 2008 5:25:51 PM
no ratings

Headline from today:

 Yahoo, Google to conduct ad experiment

For two weeks Yahoo will allow rival to place ads with some search results

http://www.msnbc.msn.com/id/24033921/

Gosh ... sharing ad revenue.  Not exactly the behavior of an evil organization.

In reality .. this is yet another legal maneuver to put pressure on Microsoft or to do an end run around them. But it nonetheless is cooperation between the two companies. They are smart, they are breaking new ground and they are serving both of their organizations well.  

 

jerrybiyn
Rank: Cave Painter
Wednesday April 9, 2008 1:40:05 PM
no ratings

Hi Paul,

I don't know what your definition of the term "Monopoly" is, hence we might be referring to 2 different things.

To me, "Monopoly" is an exclusive control by one group of the means of producing or selling a commodity or service.  Now that you have a clear understanding of where I'm coming from, lets try to answer the question you've posited.

Is Google the dominant search engine among other search engines? Yes.  Dose that make them a monopoly? No, They are dominant because of their superior execution and understanding of search technology. Is there room for some one else to event a superior search technology algorithm to overtake them? Yes. Then they are not operating a monopoly, cause there is room for others.

Is their any viable alternative beside them? The answer to that is a resounding "Yes" Yahoo is there, Microsoft Live, Alltheweb, Lycos, altavista and many other contenders.  So, why is Google still dominant with all this contenders at their heels... Because their search technology, algorithm and presentation is superior.

 

Now do they want to see other viable search alternatives on the market? That is a subjective question, that would only lead to a subjective answer and presumption. Is it always true that the most successful company are the most monopolistic? No. Some of them are.

Paul Whyte
Researcher
Wednesday April 9, 2008 12:18:44 PM
no ratings

Hi Jerrybiyn,

You are missing the fundamental point of the discourse. Nobody is trying to demonize Google but at the same time we have to call a spade a spade!! I don't know your own definition of 'monopoly' but the standard economic definition perfectlydescribes Google. Are they not the dominat search engine? Are they not dictating what happens to search? Is there any viable alternative besides them? Do they want to see other viable search alternatives on the market? If you can genuinely answer these questions, then may be you may have a differnet opinion.

Nobody is fretting over their success but as you know very well the most successful companies are the most monopolistic ones!!! 

jerrybiyn
Rank: Cave Painter
Wednesday April 9, 2008 11:55:14 AM
no ratings

I completely agree with you... ("There is a profound difference between a company that takes over a market segment and dominates it by force (like ATT did with phones years ago, and cable companies are doing now by being the only choice in a given market) and a company that produces a service or goods that consumers prefer. and therefore grows larger because of that success.") A very objective view of this.

A company that provides superior and qualitative service, and become successful because of that, should not be demonized for being successful. On the contrary they should be admired. Google a monopoly, no! Rather a disruptive and innovative company technology-wise   

Gamini Gooneratne
Rank: Cave Painter
Wednesday April 9, 2008 4:27:43 AM
no ratings

Yahoo Search Engine was developed by Google, and the latter does not wish the Big Sister, who helped them to do more research and come up with their own competitive site. Yahoo did not objct to this move by the Google developers who were simply a bunch of teenagers, who had given 'Y' the Primary Chance of being the 1st or one of the Mail delivery services in addition to News, Entertainment, Sports, etc.

 So Google present strategy of being a monopoly does seem very true.

 

In Marketing we usually welcome competion, since it affords the opportunity of coming up with the best product. Not just a "me-too." one.

 

So Google shoud not worry about the acquisition of Yahoo byMicro-hoo, only hat they will also acquire the Yahoo / Google engine.

Raza
Rank: Cave Painter
Tuesday April 8, 2008 4:22:40 PM
no ratings

Lynngi has replied about your comment on the ad space.

Regarding the acquistition bid by Microsoft for Google, I dont think Google really wanted to acquire Yahoo. I have not seen any official statement by Google in this direction. (Pardon my ignorance)

On Internet evolution, we have read about many new search engine companies that have got a very favorable response from the audience. Google has not tried to prevent any such new business/ company from working .

Google has been exploring many new frontiers. It has been acquiring many new companies but it has been supporting many other initiatives as well.Examples include Google Summer of Code to support open source development and support for Mozilla Firefox.Every company would try to protect its business and I think every company has right to do so.

Google vs Baidu story is enough to tell google is not trying to become to No 1 Internet Monopoly. Google is not the number one search engine in China only because it did not accede to the requirements of Chinese government. Any monopolistic company would not have missed such an option.

Lynngi
IQ Crew
Tuesday April 8, 2008 1:22:44 PM

If Google were a start-up who was successful in getting ad revenue because they offered a new method of search that users preferred, would you still object to their ad share?

 That is, in fact, what happened. Yahoo was the then-dominant search engine when Google was developed. Google overtook them because their product was preferred by Internet users. Not surprisingly, ad revenue shifted from Yahoo to Google.

The fact that they currently are getting the largest share of ad revenue is a reflection of their success at delivering a good service. Are you sure you want to punish successful companies just because they grow?

 There is a profound difference between a company that takes over a market segment and dominates it by force (like ATT did with phones years ago, and cable companies are doing now by being the only choice in a given market) and a company that produces a service or goods that consumers prefer. and therefore grows larger because of that success.  

If you don't want Google to continue to be successful, then by all means, start using Yahoo, Dogpile, Alta Vista or MSN as your search engine, and encourage everyone you know to do that as well. If any of them succeeds in making end-users more satisfied, then the ad revenue will follow them and Google will no longer be dominant.

Any company of any size should object to a merger of companies that appears to create an anti-competitive market. If Google were a small start up and still objecting to Microsoft's proposed buyout of Yahoo, chances are pretty good no one would object. Google is successful and OF COURSE is protecting its market share. It would be fiduciary failure on their part to NOT object. 

As for the proposal to take over Yahoo themselves.. this is a standard maneuver in a merger battle. It's best not to confuse a strategic move with a tactical move. Google does not want Yahoo; if they did, they would have made that offer a long time ago. What they want is to prevent Microsoft from acquiring Yahoo. That's a very different motivation.   

 

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