Today’s The Wall Street Journal Europe published an editorial that Alberto Mingardi of Istituto Bruno Leoni and I penned about the competition complaints brought against Google in Europe.
If policy makers set the terms in a primitive year like 2010, nobody will have to respond to Google.
By WAYNE CREWS AND ALBERTO MINGARDI
Google isn’t a monopoly now, but the more it tries to become one, the better it will be for us all. Competition works in this way: Capitalist enterprises strive to gain in profits and market share. In turn, competitors are forced to respond by trying to improve their offerings. Innovation is the healthy output of this competitive game. The European Commission, while pondering complaints against the Internet search giant, might consider this point.
Google has been challenged by a German, a British, and a French Web site, for its dominant position in the market for Web search and online advertisement. The U.S. search engine is said to be imposing difficult terms and conditions on competitors and partners, who are now calling regulators into action. Google’s search algorithm is accused of being “biased” by business partners and competing publishers alike. 
Before resorting to the old commandments of antitrust, we should consider that the Internet world is still largely impervious and unknown to anybody—including regulators. We are in terra incognita, and nobody knows the likely evolution of the market. But one thing is for sure: Online search can’t evolve properly if it’s improperly regulated—no matter the stage of evolution.
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Really, what would we do without European antitrust regulators protecting us from the evils of browser innovation? If Microsoft was allowed to actually bundle its Internet Explorer browser alongside its operating system we might actually do something really crazy… like perhaps try it! After all, the latest browser stats make it pretty clear most of us have a choice and that fewer and fewer of us rely on IE. As Erick Schonfeld noted on Tech Crunch today:
The new browser wars on on. More than a decade after Microsoft killed off Netscape with Internet Explorer, competition in the browser market has never been stronger. Just last week, Mozilla released Firefox 3.5, which has now been downloaded nearly 14 million times. Earlier in June, Apple released Safari 4. In March, Microsoft introduced Internet Explorer 8, and Google came out with a speedier beta of its Chrome browser. Some early data is coming in showing relative market share and how fast people are upgrading. If you look at the chart above from Statcounter, it indicates that since March Internet Explorer has lost 11.4 percent market share to other browsers. [..] Where did that go? It went to Firefox, Safari, and Chrome. Nearly 5 percent of that, or about half, went to Firefox 3.0, which currently has 27.6 percent market share. That doesn’t count last week’s upgrade.
Alas, as I pointed out in my essay a few weeks ago (“European Regulators Think Consumers Too Stupid to Know How to Download a Different Browser“), some Euro-crats still seem to believe that changing browsers requires great detective skills to unearth alternatives. It’s just pure poppycock and yet another sad example of how antitrust law is usually hopelessly behind the times and has absolutely nothing to do with protecting consumers or fostering innovation.
Now, please excuse me while I get back to surfing the Net via Firefox and Chrome (and Opera on my mobile phone). My God, how did I ever find these browser alternatives!
According to Ina Fried of CNet News, Microsoft plans to remove its Internet Explorer web browser from the new versions of Windows 7 when it ships it in Europe later this year. [Additional coverage at ZDNet.] MS is apparently doing so to assuage the concerns of EU antitrust officials, who have been obsessed with the company for the past decade. [Update: Here is MS official announcement.]
Apparently, European officials think their citizens are too stupid to find an alternative browser. I mean, seriously, how hard is it? Does the competition lack name recognition such that consumers can’t find them? Hmmm… Google and Apple seem to be pretty well known brands, and their browsers (Chrome & Safari) are pretty easy to find. And then there’s Mozilla’s Firefox browser (my PC favorite) and Opera (my mobile phone favorite), which are outstanding browsers. [Incidentally, Firefox already has 31% share of the European market.]
OK, OK, the regulators might say, but these competitors are just too expensive! Uh, no, wait… every one of them is free. So, strike that theory.
Well, the regulators need another theory then. How about illegal tying of products and services! You know, there’s only certain sites or services you can use with IE, right? Nope, that theory doesn’t work either. And does anyone believe that MS could really tie OS functionality to the use of IE? How long would the world tolerate Outlook e-mails or Word documents that only allowed linking to URLs via IE?? Come on.
OK, any other theories left? Not that I can think of. Which brings us back to the only theory the Euro-crats have left: people are sheep. They’ll take whatever MS bundles into the OS free, you see, and they will use it more than they use competing products. Thus, we regulators have to save them from their own stupidity! The masses just don’t know what’s good for them! These free, integrated services are harming them! And, therefore, the only remaining solution is to kill innovation by crippling functionality and removing the free offering. That’s pro-consumer! … or so say the European antitrust bureaucrats.
Meanwhile, back in the real world, a whole lotta innovation continues to take place. But shhhh.. don’t tell the Euro-crats. They need a company to pick on. Welcome to the Theater of the Techno-Absurd.
By Berin Szoka & Adam Thierer
As we noted in our intro to this ongoing series, Google’s tenth anniversary has passed with Googlephobia reaching new heights of hysteria.
But is Google really too big and dangerous, or are people just too lazy to find other alternatives to each of the wonderful services that Google offers? If one is truly paranoid about the firm’s supposed dominance, it doesn’t take much effort to live a Google-free life. To prove it, we set out to find alternatives to each of the services that Google provides. After awhile, we got a little tired of compiling alternatives in each category and just provided links for the additional choices at your disposal. It’s tough to see what the fuss is about with the cornucopia of choices at our disposal. If you don’t like Google, then just don’t use it or any of its services. The choice is yours.
In each case, we’ve listed Google first, even though Google may not be the market leader (e.g., Google’s relatively unknown social network Orkut).
Search Engines
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By Berin Szoka & Adam Thierer as part of an ongoing series
With Google celebrating its 10th anniversary this week, many panicky pundits are using the occasion to claim that Google has become the Great “Satan” of the Internet. Nick Carr wonders what the future holds for “The OmniGoogle.” The normally level-headed Mike Malone worries that Google is “turning into Big Brother.” And Washington Post’s Rob Dubbin says that he can’t escape Google’s “tentacles,” even for just 24 hours. Meanwhile, speculation abounds that the Justice Department is preparing a major antitrust lawsuit against Google concerning its advertising partnership with Yahoo! or perhaps even a broader suit concerning Google’s “dominance” of online advertising generally.
Carr quotes Google co-founder Sergey Brin’s now-famous 2003 interview:
I think people tend to exaggerate Google’s significance in both directions. Some say Google is God. Others say Google is Satan. But if they think Google is too powerful, remember that with search engines, unlike other companies, all it takes is a single click to go to another search engine. People come to Google because they choose to. We don’t trick them.
In the last five years, Google has become far more than just a search engine. As Google’s suite of suite of complementary products continues to grow, so too does the specter of Google as an all-knowing and therefore all-powerful economic colossus. Yet Google isn’t even close to being the sort of nefarious monopolist out to destroy user privacy at every turn, as some seem to imply—if not exclaim. Indeed, in our view, the Net is overall a far better place because of the existence of Google and the many free services it provides consumers.
Our point is not that Google should be immune from criticism. Indeed, healthy criticism of corporate actions plays a vital role in the free market by disciplining corporate policies and behavior—often thus providing an effective alternative to government regulation. This is particularly important in the area of consumer privacy protection, as demonstrated by Google’s quick response to public concern about its Chrome EULA. Continue reading →
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The Technology Liberation Front is the tech policy blog dedicated to keeping politicians' hands off the 'net and everything else related to technology.
