יום שבת, 25 ביוני 2011

Google's dominance of the search market and fair play

The US Federal Trade Commission (FTC) is investigating Google's dominance of the Internet search industry

Google has always had a good reply for the critiques of its dominance: Users are not locked in, and can move on with a few clicks. In other words there are no real barriers preventing consumers from changing their search engine of choice, in the world of the Internet.

The problem with this position, is that it is a clear attempt to change the topic of conversation (a move which may appear familiar to the readers of this blog who live in Israel and are up-to-date in the Israeli economic discussion regarding the problematic structure of the Israeli economy, thanks to the few oligarchs who control it). Google's stated response is referring to the FTC's original role, of Trusts-busting. But, in the words of FTC's website:
'Over the years, Congress passed additional laws giving the agency greater authority to police anticompetitive practices. In 1938, Congress passed a broad prohibition against “unfair and deceptive acts or practices.” Since then, the Commission also has been directed to administer a wide variety of other consumer protection laws...In 1975, Congress gave the FTC the authority to adopt industry-wide trade regulation rules.' [the ... ommission is mine(G.S)]

And Thus, while Google's post on their official blog referring to  FTC's investigation insists that the company is playing fair (doing what is best for the user; labeling advertisements clearly; keeping transparency; always enabling users and their data an easy transfer to competing services), I cannot help but feel envious of the U.S.

There is no way to differ between players who play fairly, and players who just pretend to be playing that way. As an avid Google services user, I believe that Google is playing fairly. But it is reassuring to know that Uncle Sam is verifying that fairness of the play.

If only Israeli citizens could enjoy the U.S regulatory agencies in other aspects of our lives....

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