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863 points IdealeZahlen | 1 comments | | HN request time: 0.329s | source
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spacebanana7 ◴[] No.43718419[source]
Google isn't a monopoly in the Standard Oil sense of the term. Its ad revenue is big because it occupies so much user attention. I actually think many suggested remedies would actually make Google more profitable.

For example, prohibiting Apple-Style search deals would mean that Google gets a smaller amount of traffic, but that traffic would come with zero cost. That could end up being more profitable. A similar argument applies to Chrome or any other customer acquisition vehicle.

The real barriers to making Google competitive are fixable but require a different sort of regulation outside of antitrust.

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yoshicoder ◴[] No.43718485[source]
I mean it wouldn't make sense for it to be more profitable for google if there were no search deals, since otherwise they would just cancel the deal themselves. Clearly they see long term value in blocking out competition even at that high of a price
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spacebanana7 ◴[] No.43718555[source]
Google can't cancel it right now because then otherwise Bing would bid for it. Antitrust rules which prevented anyone from bidding it would protect against this.

A historical parallel is when tobacco advertising was banned, and cigarette companies because more profitable. Advertising greatly affected which cigarettes people smoked but had a smaller (though still real) impact on whether they smoked. So the companies kept most of the revenue with none of the advertising cost.

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1. DrillShopper ◴[] No.43718799[source]
The real reason that tobacco advertising ended on television is the fairness doctrine.

After the FCC agreed that the fairness doctrine applied here every station was required to run one PSA for every 10 tobacco ads. The industry, realizing that nobody would stop advertising without being forced to, actually lobbied Congress for the passage of the law banning it. One reason total revenue went up was that stations were no longer required to run anti-smoking PSAs.