Archive for Tag “Google”

An antitrust case against Google: a threat to free competition

Friday, March 20, 2009 by Alex Epstein

Will Google follow in Microsoft’s footsteps and become the target of antitrust prosecution? In a recent article on the influential and popular blog TechCrunch, Wharton professor Eric Clemons argues that it could-and should.

Clemons’s argument, despite its considerable length and its use of multiple case studies and technical diagrams, can be summed up rather straightforwardly: Google is abusing the “market power” gained from its dominant search engine–by “overcharging” advertisers who want access to its search engine’s users. Clemons flatly asserts that “Google enjoys monopoly power over corporations that participate in its keyword auctions.” And: “Google is abusing its monopoly position by overcharging corporations for access to consumers.”

All of this talk of Google’s power makes Google sound like a menace to competition and customers. But let’s take a closer look at this power, to see where it comes from, and whether it’s good or bad Read the rest of this entry »

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Google, Standard Oil, and the monopoly myth

Thursday, March 12, 2009 by Alex Epstein

Antitrust law is based on the idea that the economic power of successful companies is a danger to the competitive process and to consumers. We must reign in or break up the most dominant companies, we are told, in the name of preserving a genuinely free, competitive market. Now, it appears antitrust advocates have their sights clearly set on a new “monopolist”: Google.

Trial balloons are being floated in important places, such as TechCrunch, the New York Times, and the Boston Globe, suggesting that Google needs to be brought down to size. In an upcoming post, I will explain why I think that Google poses no threat to competition whatsoever. Initially, though, I would like to recommend that readers check out a recent lecture of mine that is very relevant to this case: “The Monopoly Myth,” now online at the ARC website. Read the rest of this entry »

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