Re:A new round of antitrust questions can’t go well for Google
by studentrob on Sunday June 02, 2019 @06:32AM
(#20074608)
Google's products are free. That's not a monopoly.
Re:A new round of antitrust questions can’t go well for Google
by nabla9 on Sunday June 02, 2019 @06:56AM
(#20074689)
Google's sells advertising.
The idea that two-sided market can't have market failures because one side gets free services is not very strong one.
Re:A new round of antitrust questions can’t go well for Google
by studentrob on Sunday June 02, 2019 @08:51AM
(#20075146)
About the ad business, are businesses getting gouged by Google such that they need help from the government?
Re:A new round of antitrust questions can’t go well for Google
by nabla9 on Sunday June 02, 2019 @10:32AM
(#20075680)
Yes. There is evidence that Google and Facebook have monopoly power. Google has 80-90% market share in search and Facebook has similar market share in social media ads. Network externalities make it hard to compete with them.
You can also make case about collusion between FB and Google emerging around 2010-2013. They have divided the markets and have stopped competing. It's hard to find evidence that it's intentional. It can be just understanding emerging from single meeting or natural development. Whatever the reason they seem to avoid direct competition.
This is too narrow understanding of monopoly power. Market failures happen even when there are multiple suppliers
If some corporation gets into position where customer 'Can always choose' a option that provides less value for them and it's the monopoly power that provides the advantage (size and network effects) markets are not efficient anymore.