So we shouldn’t change the antitrust laws b/c the current law can handle it. But when we apply current laws in a market that is dominated by one company to see if it is engaging in restrictive downstream contract to kill off consumer choice and competition, that’s bad, too.
Tomorrow, the US Government is suing Google for being too popular. Yes, really. And the consequences could be the internet as we know it.
The government breaks everything it touches - do not let it break Google.
Here’s everything you need to know 🧵
1. This is the first major antitrust lawsuit against a tech company since Microsoft was sued in the late 1990s. It’s being brought by the Department of Justice and a large number of state attorneys generals.
2. Their complaint hinges on the fact, quite literally that Google is too popular. Over 80% of searches originate on Google. They also say in the complaint that Google hasn’t done enough to help their competitors. Again, yes really. More on this in a minute.
3. But in order for a company to have violated antitrust law, they must have violated the Consumer Welfare Standard. That means they must actually BE a monopoly (which rarely exists and certainly doesn’t apply to Google), and they must have used that monopoly power to harm consumers. There’s less than zero proof Google has done that, in fact, all evidence points to the contrary.
4. The lawsuit says that because Google negotiates deals with companies like Apple or Android to be the default search engine on their devices it has engaged in “anti-competitive” practices.
This is why antitrust has always been an anti-capitalist trojan horse - businesses exist to succeed, not to help their competition. Google bartering such deals is just smart business practices and good marketing. No one is FORCED to use Google 👏🏻👏🏻 All of their services are FREE.
Furthermore, Google competes with other companies for these contracts, they win out because they are the best. It takes less than 4 finger taps to change your browser on iPhone, less than 2 clicks on Safari. Yet even when companies select a different default browser, like Microsoft did with Bing!, the majority immediately take the effort to switch BACK to Google. In fact the top search on Bing! is “Google” (Lolol).
Google’s practices are not different that a cereal company paying for better product placement in a grocery store aisle. These are basic marketing efforts and it’s corrupt Google is being persecuted for executing them well. Consumers know they have a choice, they merely choose Google overwhelmingly.
Google is competing fairly, they’re winning en masse because they offer a superior product people want, again, for FREE. But the government wants to be the one that picks winners and losers in the market, not you.
5. The state attorneys generals in the lawsuit also claim that Google didn’t do enough via its ADS360 platform to speed up Microsoft’s products to their liking. Google says it was instead focusing on meeting the needs of its other consumers before it competitors. This is just basic common sense. What kind of upside down world argument is it to argue a company should prioritize the needs of its competitors over its consumers. Again, this is anti-capitalist bs.
6. The real reason the government is filing this lawsuit is because they want more control over the tech sector, more control over the market, and ultimately more control over you and your data. There is a real effort to overturn the consumer welfare standard and reform our antitrust laws to look like Europe’s instead of ours going on in DC right now and members of BOTH parties have dirty hands.
There are virtually no tech companies in Europe because their laws are so bad. Our economy dwarfs theirs in terms of innovation, GDP, and investments. Capitalism works really well when we let it. We do not want to look Europe.
Finally:
A company shouldn’t be shaken down for being too good at what they do. I hope the government gets its butt beaten in this case and stops this socialist crud. They can’t even fix the roads, they certainly shouldn’t be trying to micromanage the internet.