Google: the mother of antitrust battles?

[edesignuk]

The US Senate today embarks on what could become years of antitrust investigations into Google by the IT, telecoms and media industries.

The hearing today is just that - a piece of political showboating ordered by antitrust subcommittee chairman Herb Kohl. It's not a formal investigation, let alone a lawsuit. Yet with the destiny of much more than today's precious "Web 2.0 economy" now in one company's hands - 90 per cent of paid search advertising goes through Google - it's surely just the start.

Whether regulation will be able to put but a dimple in Google's ascendance remains to be seen. Google's vast data centres and its own private networks promise to give it de facto control over the delivery of content. A parallel business strategy is to squeeze the life out of access networks, the one area where it shrewdly doesn't want to play. Google is content to leave "last-mile" and wireless operators as unprofitable, commodity conveyors of bits. If the strategy is successful, it will ensure that no one will be able to make money from the internet except Google itself - leaving the public internet effectively in one company's hands. (Forget about the TV, newspaper, movie and music industries. By the time they wake up to the Google threat, they will by then be smoking ruins…)

The Register.

Kind of long, but interesting read if you're fascinated by the modern wonder that is Google, the challenges it faces, and the challenges it's competitors fail to meet entirely.

 

[Malfoy]

1. Google is very good, no great at what they do. It was bound to happen.

2. I have a feeling if the story spoke about MS, you wouldn't use the line "the challenges it's competitors fail to meet entirely."

Disclaimer: I have issues with antitrust law as it stands today so I'm all about leaving Google alone to do what they do.