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July 10, 2008

So Now Google Itself Can Face Potential Antitrust Implications?

Analysis of: Google, Zen Master of the Market | www.nytimes.com
This analysis is solely the work of the author. It has not been edited or endorsed by GLG.
Analysis By:
Implications: 1.      Any possible antitrust suit brought against Google will be most likely based on punishing the company for its success and for its innovation. 2.      The idea that “antitrust law is being reconsidered in a new context, shaped by Google” demonstrates its capricious nature. 3.      Most ominously, the fate of large corporations are driven more by political forces than by the original intent of such laws.  

Analysis:  “[A]ntitrust training is mandatory now for Google managers.”  But to what extent can there be any kind of education when “the rules” are a moving target?  At a bare minimum, executives have to avoid any kind of tough language about hammering the competition in their correspondence.  This kind of walking on eggshells is nothing short of insanity.  Corporations are in a battle to win and conquer their opponents. 

But future opponents of Google will want to have it both ways.  It is not out of the question that Google can be determined “to be big and bad” because its “market power [could be]...the equivalent of what in foreign affairs is called ‘soft power.’”  Putting aside that the term is an oxymoron, now Google can get into trouble because it has the “power to co-opt.”  So, there could be negative consequences because of the “experience effects” of people using their service – that is an offshoot of their great achievements.  All in all, a lot of what happens in the market that is out of the hands of Google could be viewed as the company engaging in antitrust violations.

As with the Microsoft case, political contributions will be instrumental in whether a case is brought or not – and that applies to both sides of the aisle.


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