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Google’s Internal Response to Imminent E.U. Charges

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Re: Google’s Internal Response to Imminent E.U. Charges

#3
post #2

If those graphs are supposed to show that Google Shopping is an unpopular also-ran that users don't like or use, you have to wonder why they keep putting it in a big box with pictures at the top of search listings, like http://imgur.com/N3aGIVy

Perhaps to try to make it more popular?

Re: Google’s Internal Response to Imminent E.U. Charges

#4
post #3
post #2

If those graphs are supposed to show that Google Shopping is an unpopular also-ran that users don't like or use, you have to wonder why they keep putting it in a big box with pictures at the top of search listings, like http://imgur.com/N3aGIVy

Perhaps to try to make it more popular?

By stealing data from competitors?

Re: Google’s Internal Response to Imminent E.U. Charges

#5
post #2

If those graphs are supposed to show that Google Shopping is an unpopular also-ran that users don't like or use, you have to wonder why they keep putting it in a big box with pictures at the top of search listings, like http://imgur.com/N3aGIVy

According to Google in the early days 'paid inclusion' was one of the original sins, and Google would never stoop that low. I personally think that paid inclusion is actually less evil than promoting your own crap products over the legitimate listings.

Re: Google’s Internal Response to Imminent E.U. Charges

#6
It's fascinating that their memo dismisses their search position so easily, but focuses on graphs for shopping and travel that shows them in a weak position in those areas, as either the memo is hiding their real arguments (which might not be unreasonable - given its audience and the odds it would leak), or they have not thought this through.

What the graphs show is that there are a number of strong competitors in the shopping space, which may create a strong public interest in ensuring Google is not being allowed to use it's perceived search monopoly position to muscle into the space and limit competition by giving itself better positions in results.

If the EU Commission finds that Google has a sufficient near monopoly on search and that their practices with respect to expanding their reach in shopping is anti-competitive, then Google's current weak position in shopping is entirely irrelevant unless they're hoping to show that being given such a prominent position in their search results does not give a business any advantages (their ad sales people ought to start hyperventilating if Google makes that argument).

And in fact the existence of a healthy, competitive eco-system in shopping would make any anti-competitive behaviour by a powerful monopolist far more damaging and important to curtail in the eyes of the EU Commission. It should not be something you'd want to draw attention to.

A much better argument would be to highlight far more the breadth of niche search engines, and how e.g. searches on Amazon and Ebay and others should also be included in any assessment of search market share, and that this would show that Google's market power is not as great as it would seem if you only look at "general purpose" search engines.

Re: Google’s Internal Response to Imminent E.U. Charges

#7
Those graphs are so sad. It's all American companies competing among themselves: Twitter, Bing, DuckDuckGo... Even on our home turf, even with natural advantage (not so much in search but definitely in shopping), local competition is at the bottom, far behind Amazon and Ebay.

And this doesn't seem to worry anyone here. We continue to tack on more regulation, tax rules detrimental to small businesses in their complexity, and now surveillance that would make Obama blush[1]. Oh, but we will show these evil monopolists with this formal complaint.

[1] https://news.ycombinator.com/item?id=9379299

Re: Google’s Internal Response to Imminent E.U. Charges

#9
It ought to have been transparently obvious to Google execs from when Google became utterly dominant in the web search space that the risk of anti-trust violations was very high and if they wanted to avoid being censured they needed to consistently take the high road & avoid using that dominance to force entry into other fields at the expense of competitors. It has always looked to me that Google was consistently stepping over that line in search & advertising often enough that they were inviting anti-trust suits.

The agreements they force phone vendors to sign up to if they want to ship Google Play services with Android phones also stink to high heaven & are an anti-trust suit waiting to explode in Google’s face - that self-imposed banana skin appears to be next on the EU commission’s agenda.

Google can afford to pay any fine the EU is likely to impose of course. The greater cost may be in exec time & loss of face, plus the generalised malaise that seems to go along with losing an anti-trust suit.

Re: Google’s Internal Response to Imminent E.U. Charges

#10
post #9

It ought to have been transparently obvious to Google execs from when Google became utterly dominant in the web search space that the risk of anti-trust violations was very high and if they wanted to avoid being censured they needed to consistently take the high road & avoid using that dominance to force entry into other fields at the expense of competitors. It has always looked to me that Google was consistently ste…

More than the fines is the ability to impose changes on their business practices. Imagine if Google could no longer require OEMs to bundle various Google products in order to get the Play store.
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