June 11th, 2009
Google says it loves competition
With Justice Department scrutiny over the Google Books Settlement only the the leading edge of antitrust regulators’ attention to Google, the company has launched a dog-and-pony show dedicated to combating the impression that more control is needed.
In a presentation (PDF) acquired by Consumer Watchdog, Google public affairs lead Adam Kovacevich argued that Google is anything but anticompetitive. Its success comes from “learning by doing,” the presentation says.
Google welcomes competition because it stimulates innovation, makes us all work harder, and provides users with more choice.
This follows messaging that Google’s real market is all advertising, making it not dominant at all but merely a fringe player. InfoWeek interviews Wharton business school professor Eric Clemons, who says this is pure FUD.
I consider antitrust action likely at this point. More to the point, so does Google. They have, not surprisingly, figured out the points that will be key and are already starting to address them.
Google has gone right to the heart of the matter, which is if the relevant market is all of advertising, their position is inconsequential,” Clemons said in a phone interview. “If the relevant market is Internet search, then there is a very real possibility in their minds that they can lose an antitrust lawsuit. So they’re doing a massive disinformation campaign.”
