Monday, May 18, 2009

Is Google a Monopoly?

Surely any company that has a 70% - 90% share of any market could be seen as having a monopoly?

Well Google currently has the following shares of the search market in these countries:
However, I can't help feel that a lot of this hype about Google's monopoly has been based upon fear from its competition (e.g. Microsoft's multi-million pound lobbying of Washington to block the Google & Yahoo advertising partnership last October) or worry from those who have old business models.... newspapers please take a step forward. And talking about Microsoft, weren't they themsleves found guilty of all sorts of anti-competitive activity several years ago? It therefore makes it all the more hypocritical that they "wolf" now.

But even though Google may have power in the search market, it doesn't necessarily mean that this has corrupted them does it? Well according to Jon Leibowitz ,the new Chair of the Federal Trade Commission, when asked last week if he saw Google abusing its power, said:
"I certainly don't see Google as abusing its power right now, no. And also it's brought many benefits to consumers."

But nevertheless Google has gone on the defensive, readying itself with information such as this presentation to potentially defend itself against the Anti-Googlers.

One thing is for sure, there's a lot of jealous companies out there who would love even a fraction of Google's wealth... and they show no signs of letting up in the current market conditions.
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