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863 points IdealeZahlen | 1 comments | | HN request time: 0s | 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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chii ◴[] No.43718685[source]
> Antitrust rules which prevented anyone from bidding it would protect against this.

why would anti-trust rules prevent _anyone_ from bidding? Apple can sell their browser search, just like mozilla can sell firefox search. And anyone with a browser could do the same. Unless the anti-trust rules somehow become so overarching that the selling of space for advertising becomes illegal?

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1. spacebanana7 ◴[] No.43719029[source]
You highlight some genuine points of difficulty for antitrust enforcers.

If the rules were targeted at Google only then Google's lawyers would argue this is unequal application of the law. Even if the courts rejected Google's argument there'd be a real risk end up with exactly the same situation but with Bing in a couple of years time as they become the default search on every device / browser.

If "pay for default" deals were banned altogether then Firefox might be seriously hurt, which isn't exactly good for the competitive tech ecosystem.