Google’s Monopoly and Internet Freedom
Oct 7th, 2012 by yinyinaung.bettyhuang
Google, as a monopolist, has a high degree of market power and has the ability to set the market price.
Google has a high barrier to entry due to ownership of patents and frequent acquisition to reduce suppliers. Its strong brand image makes it hard for new entrants. It could abuse its power by adopting practices that are only of firm’s interest, instead of the society as a whole. Google has altered its algorithms in its search engine, which is providing customers with biased search results, instead of the most relevant ones, especially when competitors are concerned in the search. The new system favors products from Google and companies that spend a high budget on advertising.
One of the main reasons for Google’s profitability is its massive advertising to the users. Customers believe that Google should “allow users to reduce the number of ads shown or incorporate a user’s preferred services in search results”. Another reason to Google’s success is its innovative and top notch services which used to adapt to what the online community desires. This shows that Google should not overlook the needs of customers, which is their main asset. Further, it wouldn’t be following the motto of its founders, Sergey Brin and Larry Page: “Don’t be mean.”
http://online.wsj.com/article/SB10001424052702303830204577448792246251470.html