[IP] more on   Google and 'neutrality' hypocrisy
As a usg witness at the MS trial, YUP!!!
Begin forwarded message:
From: Gerry Faulhaber <gerry-faulhaber@xxxxxxxxx>
Date: June 22, 2006 2:44:36 PM EDT
To: dave@xxxxxxxxxx
Subject: Re: [IP] Google and 'neutrality' hypocrisy
Interesting argument about why it's OK for Google to discrimiinate.   
Almost all the arguments in defense of Google could be used in  
defense of Microsoft, the (near-) monopolist everyone loves to hate.   
And Microsoft did advance all these arguments in its ill-fated  
antitrust case, to great derision (e.g., its concern about potential  
competitors,  low switching costs, and free IE/cheap OS).  Perhaps we  
should exercise some consistency here.
Professor Gerald R. Faulhaber
Business and Public Policy Dept.
Wharton School, University of Pennsylvania
Philadelphia, PA 19104
Professor of Law
University of Pennsylvania Law School
----- Original Message ----- From: "David Farber" <dave@xxxxxxxxxx>
To: <ip@xxxxxxxxxxxxxx>
Sent: Thursday, June 22, 2006 11:58 AM
Subject: [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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