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[IP] Google and 'neutrality' hypocrisy





Begin forwarded message:

From: mxu585 <mxu585@xxxxxxxxx>
Date: June 22, 2006 11:55:11 AM EDT
To: dave@xxxxxxxxxx
Subject: Google and 'neutrality' hypocrisy

re: Basically, the proposal, intentionally I believe, draws an analogy between the business models of Google and Yahoo! with the proposed models from the service providers which would like to charge for premium treatment (access, ranking in search, etc.). What's particularly amusing about this is Google is now in a rather awkward position... Arguing that service providers can not provide preferred treatment while Google can. Very creative, and I would guess that the idea was planted by a telco lobbyist.

It's not very creative really. Same irrelevant comparison was floated by telco lobbyist McCormick during the House Judiciary hearings, and was as resoundingly crushed as you will ever see during a Congressional hearing. The market structure of the broadband access market is so completely unrelated and dissimilar to the search engine market (or even the broader internet applications market) that such a comparison is comical.

A few fractional/fringe similarities does not remotely justify use of broader comparisons to draw structural conclusions. The comparison is a red herring from the start, so the conclusions drawn are dysfunctional.

Google's basic search product is a) free and b) operates in a highly competitive market (a dozen or so active competitors, and at least 2 dozen over the past 7 years), and c) has zero switching costs, and d) even allows users simultaneous use of multiple competing search products at any given instant. Broadband access "market" has none of the above structural underpinnings.

That Google has the largest market share is irrelevant to the argument because that market status was gained in a truly open competitive market under the above conditions, selected by the market in the face of multiple level-playing-field competitors separated by zero switching costs.

Perhaps more importantly to the issue at hand, Google also does not own/control the delivery platform so they cannot deploy overt/covert traffic manipulation in the delivery platform to confer market advantage in higher-layer markets. I'm sure they would if they could, if such easy, undetectable market manipulation tools were at their fingertips, but they can't so they won't.

PS Adding a crisp irony to this whole line of hypocrisy thinking, do a Google search on "net neutrality" and the highlighted sponsored link is to an ANTI-net neutrality website. Whether or not you click on it is totally, completely your choice--unlike ANTI-neutrality TV commercials where you must take action in order NOT to see it.


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