This is an opinion which I don't feel the need to convert anyone to but I really don't understand the opposite view. Can someone explain why they believe google and other "emerging" power centers saveguard their interests better than the EU?
They have acted against "what people usually prefer" many, many times before when it was beneficial to their own interests.
Additionally, "what people usually prefer" is completely orthogonal to the EU antitrust ruling, which is about holding companies responsible for the power that comes with market dominance.
Companies don't really have ethics or humanity (the way people do), unless we force them to. "We" in this case refers to the whole of society, including the people making up the company. In particular as companies grow very large, even if the people making up the company are ethical, humane and good, THEY are still tasked to wrangle a wild beast that is mostly just hungry for profits, and try to steer it to do Good and not Bad because it doesn't see there is a difference. But even then, they can use help from the rest of society, and regulations can be part of this help.
It's so refreshing to see checks and balances on US multinationals, and I say that as a US citizen.
https://en.wikipedia.org/wiki/United_States_presidential_ele...
They live under some sort of bubble of selfishness, where they believe others have to change in order to do to what is best for them. Guess what, as long as Google is committing no crime, why should them?
1. Because it's in their long term best interest to have a customer for life (No political cycle) so they are more incentivized than a politician would be to support the interest of the consumer.
2. They have a more insight into user desires and actions on a day to day basis, meaning they can predict and "nudge" users in directions that are mutually beneficial.
The biggest argument I've seen is that people don't like that they aggregate the data you give to them.
This goes to the broader point though that Google wants to service the end user better based on their feedback (most sites are too big/load too slowly), so they created something simple that gives end users a faster, better and cheaper (lower mobile data cost) solution.
In fact Google seems to be moving faster here because companies keep creating large websites to serve rich content that users find annoyingly slow.
https://www.theguardian.com/media/2015/oct/11/google-amp-fac...
There are also many people that actively support Chrome. Does it mean that Chrome dominance is therefore beneficial to the future?
Google long term interest is to increase the margin of their product by increasing their dominance in multiple markets over multiple tiers.
If they do this by using their monopolistic power then they are in violation of the law even when by doing that they provide a service that some of their users see usable.
No, Google users are suppliers of a product (ad views) that Google sells to their customers. But they are suppliers that are paid via in-kind exchange (with Google services) rather than cash, which is exactly equivalent to being customers of Google services that pay with in-kind exchange rather than cash. So, in a very real sense, those users are customers.
Chickens in a farm aren't situated similarly, with respect to the farm, as users are with respect to Google services.
Chickens can't freely choose a different farm, or to use no farm at all.
In addition - open air held chickens could run away but they choose not to.
What if all that happened on chicken farms was one of their feathers got plucked once in awhile?
So the question is - what are the sufficient conditions for a chicken to be raised to the customer status from the equipment status?
Even if chickens would have choice, all they can choose from for their actual survival is another chicken farm.
Over time they have downgraded their ability to survive without support of the chicken farm.
Even if they had some money to pay for the entrance into the chicken farm then collecting their eggs would be much more lucrative business.
It's in Google's best interest to make money. A large userbase and ubiquitous brand is part of that. User happiness is only one possible means to that end.
Finally, you seem to think that search users are Google's customers - as they don't pay anything to Google, they are a resource, or product - not a customer.
Google search is a loss-leader for Google ads - if there's no competition (say paying for product placement at these other sites) - Google gets a bigger share of the ad revenue.
I don't see what magical mechanism there is that would strongly push Google to care for the Google search users "best interest".
That set of users though is what this whole action from the EU is trying to protect. It's only marginally about the other businesses - the end goal is making sure the population of the EU is benefiting.
To that end I have yet to see where or how Google has proven they have the population's interest at mind than the government itself. Google has a much better track record than any government does at listening to the majority of a population's demands based on their behavior (yes even with the deprecation of groups/reader etc...) and responding with their products.
The EU or any other government does less for the population (relative to capabilities, obviously Google doesn't pave roads yet) than Google.
http://europa.eu/rapid/press-release_IP-15-4780_en.htm
> (...) systematically favouring its own comparison shopping product in its general search results pages. The Commission's preliminary view is that such conduct infringes EU antitrust rules because it stifles competition and harms consumer (...)
> (...) [Google] may therefore artificially divert traffic from rival comparison shopping services and hinder their ability to compete on the market. The Commission is concerned that users do not necessarily see the most relevant results in response to queries - this is to the detriment of consumers, and stifles innovation.
The EU is concerned with regulating the market to favour competition. It's true the underlying implication is that a Free market is a Good market - and so by defending completion it's theorised that the consumer profits. (in my opinion that's a non-seqitor - but that's the principle underlying the EU).
Now you could argue for other models, claiming that the proletariat will be better off - under a strict redistribution model, under an unregulated market, under a monopoly - but don't put EU's cart in front of the horse: it has one principle, a regulated free market.
And I'm saying that not only does the government have a terrible track record, there is no evidence that this actually makes any difference to competition. All it does is show that the government can throw their "weight" around.
Nothing in the historical record of antitrust should make us confident that the court’s dismemberment of one of the most successful companies in history would increase competition.[1]
[1]https://www.brookings.edu/opinions/if-it-aint-broke-dont-bre...
Centralised power generally means a departure from direct democracy, and that's one reason why I'm not a fan of the EU.
For a great view into why a regulated market might just be better than an unregulated one, have read of:
https://www.amazon.com/Gangster-Capitalism-United-Globalizat...
1) They are a quasi monopoly. The word you use to describe searching on the internet is "googling". Most of the phones on this planet run on their OS. So please...don't fool yourself.
2) Who's creating those desires? You think that the desire for millions of useless shit products that drive the global market are created by some neccesity deeply in our DNA? Or maybe by your free will? Or is this just the ad-industry stealing the attention from you and fitting you into a pretty tight frame of the optimal customer while preaching to you: "everybody/your idol loves this, you have to love it too".
Prediction in the age of advertising is just like advertising itself. A convenient lie.
That's either some magical advertising that makes people search for things before they've seen it. Or you're wrong.
And when I google for "an item", like "medium sized dog", for whatever reason that means I already...well, what? Want a dog? Maybe, likely not. Want whatever that particular ad is trying to peddle me with whatever shoddy means and rhetoric, because it might have to do with dogs, or merely claim it does? Nope.
Ok, and? The idea that monopoly is bad - ipso facto - is silly and monopolistic abuse of consumers is largely theoretical. Governments don't like monopolies because they challenge their power, and don't forget nearly every "bad" monopoly was the result of a government license to monopolize. The whole "Trust Busting" trope that underlies the anti-trust act was not because consumers were being hurt, it was a pissing match between the Government and Northern Securities Company [1]. Milton Friedman covered this well [2]
Who's creating those desires?
Companies, friends, acquaintances, media etc... it's not Google.
Or is this just the ad-industry stealing the attention...
Sure, are we debating the existence of an ad-market or Google? Cause I can assure you an ad market will exist irrespective of whatever Google does.
[1]https://books.google.com/books?id=klEeBQAAQBAJ&pg=PA6#v=onep...
What?! Monopolies always abuse their power because they can. I live in a country where we still feel the bad influence of a former monopolist ISP (Telecom/T-Online). THEIR influence on the government hurts the customer and even customers of other ISPs. It even hurts the tax payer who may not even have internet because his money may flow into subsidies for them. For example: they recently started eating up net neutrality in Germany. Because they can.
One of the most misused powers of monopolies is dictating a price. Just like we had a few months ago also in Germany with the biggest breweries. Millions of customers have been cheated.
IT IS ILLEGAL BEHAVIOR. They pay for this. How you can tell something like that "silly" is beyond me.
Google is not a utility, it's not the water company nor the electric company, or even your ISP, it's essentially a website one which you are free to use or not and the price of admission and switching and opportunity costs are nil, same as for all competing websites, so dictating what Google's website can display and declaring it's contents illegal and worthy of billion dollar fines makes zero sense.
The same people that brought you that idiotic cookies warning?
See http://ec.europa.eu/ipg/basics/legal/cookies/index_en.htm#se...
I suppose the Guardian shouldn't alert people that the NSA listens to their telephone calls, either. (Because every spy agency does it?)
> There are also high barriers to entry in these markets, in part because of network effects: the more consumers use a search engine, the more attractive it becomes to advertisers. The profits generated can then be used to attract even more consumers. Similarly, the data a search engine gathers about consumers can in turn be used to improve results.
Simply put, the EC believes that Google is a barrier to any viable competition, so there's no ability to develop a competitive service to Google's own.
Search has been Google's core competency since their inception, they were much smaller than the existing Search engines when they started out but were able to create a better product that users preferred and since that time they've been able to amass a wealth of knowledge, experience and resources. Of course any company is going to have a hard time trying to compete with them now, but I don't see why they need to be punished for executing so well on their core mission.
It's not about "punishing" but it is about holding dominant companies responsible for handling the great power that comes with this dominance.
Companies don't usually do this by themselves because like you say, their goals are orthogonal to this.
Doesn't mean it's contrary to their goals (which would be "punishing", in a sense), but "commercial success" or profit just isn't a force that drives ethical behaviour and responsibility. It's not. Things would be so much easier if they were.
Step 2: "more attractive to advertisers"
Step 3: "profits generated can then be used to attract even more consumers"
Wait, why were consumers attracted by the product (search engine) in the 1st step, but were convinced by the profits in the 3rd step?
Just like Toyota in the unintended acceleration problem was quickly found guilty of not being GM or Ford.
Wut?
One monopoly is no more moral than another simply because the first one has guns and the second doesn't.
I would encourage a "follow the money" train of thought when thinking about this.
My question then becomes: if this money (the $2.7bn) did not accrue to the EU, or was not levied at all, do you still think the EU would still pursue this as ferociously as it has, just to protect the consumer?
The websites could have just stopped using tracking cookies.