Monday, September 22, 2008

Do Yahoogle and Android Set the Stage for Anti-Competitive Practices?

Monopoly. When you read that word, what businesses come to mind? I am no mind-reader, but I suspect that if you are tuned into technology, Microsoft is the first name that popped into your head.

That may be changing soon. Google has some major initiatives - namely the debut of Android and the launch of its mega-ad deal with Yahoo - that have propelled it onto center-stage with the Justice Department.

Through the ad deal with Yahoo (known in some circles as "Yahoogle") Google will control 80% of the paid search advertising market. Wow! This would seem to make it awfully tough for competitive players to enter the market and for advertisers be assured a fair price on the ads they place.

Google asserts that the auction-style advertising process eliminates any concern over undue pricing control or manipulation. Others argue that Google sets the minimum bid price and the "black box" approach to serving their ads gives Google 100% control over what runs and when it runs - so their favorite advertisers would get top billing while others may be downgraded simply at Google's whim for any reason whatsoever.

On the Android front, Google is rolling out the first phone using the operating system with T-Mobile on the 23rd. The monopoly argument on this front is tough to make given that it is such a nascent play. However, with Google's might that will change quickly.

I see Google for what they are - a tremendously successful economic powerhouse the likes of which the world has never seen. The only frontier that is bigger than online search is mobile search so that is the place I watch Google most closely. Along with the level of power they continue to acquire will come more intensified scrutiny from the Justice Department. Although this threat is strong, I think the biggest threat to Google is going to come from nimble competitors who are thinking differently about how to deliver a mobile search experience that delights users. :-)

3 comments:

A United States Non Provisional Patent Applied Service said...

Something that I would like to add is that deal will make it the biggest gun on the web front but Microsoft is the majority supplier for all the ammo.

I just tried out IE8 and I have an idea that some covert counter plans are in the works.

There are some site add on app's/features that did not work using IE8 and web pages and fonts that displayed kind of funky.

I still believe that within 7-10 years Google will be the $50 stock and Micro the +$250.

Google is going to have to spend a lot of money down the road to continue to keep their brand in the public forefront. Maybe its me but I never click the ads because they are mostly "garbage" shopping sites.

Time will tell because the Google search within the website search results feature is really good but they haven't figured out how to make $$$ on it once you click.

That's where ChaCha is ready and waiting, why make a pizza from scratch when you can have it delivered to your phone? well maybe not yet, but I am sure you all are working on that mobi app too.

It wasn't so along ago when "YAhooo" was on the tip every one's tongue, now it's more about getting you Ymail and what celeb got busted.

All the best and continued success.

Brad Bostic said...

You are absolutely right that Microsoft is a formidable competitor and only time will tell whether Google or Microsoft prevails. What you are noticing in IE8 may well be one of the key motivators Google had to launch Chrome recently. Have you tried that out yet? I suspect that with Chrome Google intends to make their myriad apps more easily accessible to users by integrating them into the browser itself. Have you used Chrome yet?

A United States Non Provisional Patent Applied Service said...

Hi Brad,

One of the key motivators is that I believe Microsoft is no longer going to make it so easy to update or possibly even use some of the Windows based app's without IE.

This has happened already to me. Try logging into Hotmail if you have an account. It might be just me so let me know if you can.

It's Micro's ball and they can take it off the play ground and go home with it any time they want.

Google would sure look evil if they appeared to be going after Apple's phone market. Ya remember when you where a kid, the cute girl on the block that everybody boy was in love with kind of situation and beat up anybody would make her cry.

So why then the? http://code.google.com/android/adc_gallery/

Google Chrome is more smoke right now because adding more threads to run faster in not a new mousetrap and easily duplicated.

I have more browser addons that any person could possibly need. Mozilla has down a great job with that product line extension and I won me back about a year ago.

I tried Chrome the first day of release and was aggravated that Java console didn't work. It's fixed and I loaded the plug in, so I okay with it now.

Did you notice the IE blue color instead of the Google 5 that is their trademark? For having been a leader they sure are following now a days.

Also, just about every business web based software is built on Windows.

Apps are cool but Googles "widgets" are going to be for fun pretty much as I see it, just like Facebook's.

The myriad of apps they are promising has a big hole in it because how will a company share or store information securely? One time use and reload.

I don't know anybody that used Google for personal desktop search. Is it still around?

With Salesforce.com and Microsoft working together what market is Google going trying to target or more importantly make money from? Ads in a business application?

I think the Android Open Handset Alliance Project is what they really are after and might be trying to get Microsoft to look away from the cell market with the previously above mentioned smokescreen.

We will probably see a Google social network similar to Facebook first before a new browser champion on the block.

I will say that IE7 Pro is more useful to me especially with the drag the link to open a new tab feature.

Yahoo missed the boat not having a browser. They should get it together and throw the hail Mary and launch it asap.

It take about 10 minutes to make a browser and have done it myself with an app builder program.

Sorry Brad, I sometimes ramble on a bit so that was my short answer using a lot of words....