Schmidt's rebuttal.
There doesn't seem to be a lot of "there" there in terms of misconduct, relative to what I've seen elsewhere in the past 4 years. If anything, it's a bit of a new ethical question caused by the structure of a government office. Certainly something to look into but if we want to look at ethical issues of money in politics, there are a lot of easier places to start IMO.
> Schmidt Futures staff had no authority to make any policy decisions and did not do so through OSTP, and the story presents no evidence or examples to the contrary.
Isn't this a clear misdirection? Nobody is accusing them of having "authority" (they're not the government!), but "influence". It's denying a nonexistent (and nonsensical) accusation, which is never a good sign. Right?
So yes, the whistleblower messed up as of course the proper chain of command looked into it and found no legal issue, because the legalese version of ethics was met.
This is different from whether the law needs to be revisited.
This is also different from whether the people with the financial conflict have a noble goal.
Many people with political influence believe in their goals. Some benefit more people, others dont.
To summarize and address 6 points:
> 1) US has been accepting philanthropic funding for staffing for 25 years. Does not discuss the scale, impact or % of Schmidt's influence.
> 2) We are experts at technology and with rapidly changing landscape, we can contribute.
Yes, this is precisly the problem. Google has enormous monopoly power and you, Mr. Schmidt, are the beneficiary of that power. There is a conflict of interest here, need not be spelled out.
> 3) We love helping US Gov because of 1971 IPA act of "tours of duty".
Of course, Mr. Schmidt.
> 4) We don't have any influence. We are one of the 20 orgs. Funding is administered by neutral party.
There is a specific assertion in Politico article. Schdmidt Futures are not directly paying people's salaries, but quoting the Politico article:
> Schmidt maintained a close relationship with the president’s former science adviser, Eric Lander, and other Biden appointees. And his charity arm, Schmidt Futures, indirectly paid the salaries of two science-office employees, including, for six weeks, that of the current chief of staff, Marc Aidinoff, who is now one of the most senior officials in the office following Lander’s resignation in February.
Schmidt's rebuttal completely glosses over the details.
> 5) Schmidt Futures staff had no authority to make any policy decisions and did not do so through OSTP, and the story presents no evidence or examples to the contrary.
Schmidt Futures has no direct authority, that's correct. Politico article explicitly sources indirect authority of Schmidt Futures.
> 6) OSTP has always had and continues to retain full discretion and ownership over appointments, hires and policy decisions.
Mr. Schmidt, we can see the Front door. Clearly, it is locked with US Gov™ seal. You are not addressing Back door claims in the article.
What a fucking joke.
I think Google has repeatedly failed to gain or exploit any monopoly power. For example social.
If you haven’t been living under a rock, you should be familiar with a decade long fight it has put up to fight off its monopoly status.
https://www.nytimes.com/2021/06/21/opinion/google-monopoly-r...
https://www.ftc.gov/advice-guidance/competition-guidance/gui...
Courts do not require a literal monopoly before applying rules for single firm conduct; that term is used as shorthand for a firm with significant and durable market power — that is, the long term ability to raise price or exclude competitors. That is how that term is used here: a "monopolist" is a firm with significant and durable market power. Courts look at the firm's market share, but typically do not find monopoly power if the firm (or a group of firms acting in concert) has less than 50 percent of the sales of a particular product or service within a certain geographic area. Some courts have required much higher percentages. In addition, that leading position must be sustainable over time: if competitive forces or the entry of new firms could discipline the conduct of the leading firm, courts are unlikely to find that the firm has lasting market power.
Monumental achievement by Google and one of the most iconic companies ever to have existed on planet earth.
But quoting regional competitors like Baidu and Yandex!? Come on, that’s just silly.
The prices they raise would be on advertising. They do have significant competition with Facebook and the like in the internet advertising industry.
>the cost to the end-user has been driven down to literally nothing
The end user is the product not the customer. The customer is advertisers.
So I think you are missing what market power means. Since Google earns most of the profits with search, it allows them to use those funds do things like:
1. Acquire YouTube
2. Run YouTube for two years without any supporting ad revenue
3. Making it impossible for anyone else to compete with YouTube in the first two years because they don't have that kinda bank.
4. Allow users 1G of storage on Gmail and offering it for free, blowing away (killing) any competitor.
5. Buy and releasing Android OS for free to hardware vendors and including Google services on those OSs, instantly taking the majority market share on the brand new mobile industry.
6. Build AWS.
To your examples of Google's exercise of market power, these things have all broadly been great for consumers, and in each case listed have even also been great for a variety of businesses, further compounding the benefit to consumers. If this drove competitors out of business because they couldn't compete, that's fine. The point of antitrust legislation is to ensure competition exists so that consumer welfare is upheld. Nobody is owed a viable business model. I don't see the argument for these actions reducing competition in the economy or harming consumers. Competition to Youtube crops up from time to time and never seems to go anywhere because Youtube is a business that is extremely difficult to make profitable (i.e. they can't compete because their product is inferior). Many competing email clients exist, paid and non-paid. Buying Android, investing in it, and making it available to hardware manufacturers was a pro-competitive move, since it countered Apple's iPhone and brought a diversity of competing products into the marketplace. Building Google Cloud to compete with AWS is straightforwardly a pro-competitive move as well.
Again, you are misidentifying who the customer is. The customer is the advertisers not the users. The product is highly targeted advertising to users. The more Google knows about the user, the better their product (targeted advertising) is.
Business to business sales are not exempt from anti-trust laws. One of the things Microsoft got charged for was selling DOS to manufacturers based on the number of computers sold rather than the number of DOS installs. This was deemed anti-competitive and Microsoft's customer in this example was a business (computer manufacturers). This was a business to business anti-trust case.
https://www.justice.gov/atr/competitive-impact-statement-us-...
>If this drove competitors out of business because they couldn't compete, that's fine.
I mean maybe. It gets murky because the customer is the advertisers. Imagine if Google released a car and gave it away for free. Almost all other car manufacturers would cease to exist. They were able to offer it for free because of the profits from search. The cost of running Gmail and YouTube is paid for by search profits. All this needs to be argued / decided in court, you and I can just speculate all we want. It won't be tried in court because of regulatory capture, which is really what the article is about.
>Competition to Youtube crops up from time to time and never seems to go anywhere because Youtube is a business that is extremely difficult to make profitable (i.e. they can't compete because their product is inferior).
Yes, this makes a lot more sense if you consider the product is the network of users to sell ads too, not the users themselves. Now you have the network effect which was built by being able to run YouTube for 2 years without selling a single ad.
>Many competing email clients exist, paid and non-paid
Yes but Gmail is #1 and it jumped there really quick because they were able to offer what no-one else could, because the subsidized moving into that industry with search profits, which no one else could. That's the anti-trust part.
That's a common refrain from the people holding the monopoly. It's simply untrue. If you are the market leader by a wide margin, you end up dictating the landscape.
> Do you really consider Bing to be so bad that you don't even count it as a competing product in the same product category as Google Search?
I can create a car in my garage, but I'm not competing with Honda. What's the point here? That because something exists it is a market force that influences others? Search (and the associated advertising, data collection, etc) exists as a momentum driven product^ via the network effect. How easy it is to switch to Bing or buy the car I made, is wholly irrelevant.
^That wasn't always true, as in the beginning of search circa the 90s, but it's true enough today.
So you've missed the actual argument here - how is Google doing that? What are the downsides? Because speaking as someone who switched to DDG out of concern both at Google's social policies and the sheer amount of data they collect, I have been unable to detect any impediments.
I do believe nonetheless that Google has a slightly better search index - the results when I check there seem a little more reliable (slightly more varied results, maybe. Hard to put a finger on the difference). They make a really good search engine and fight hard for that 90% market share. But if we decide the word "monopoly" means "makes a good enough product to command 90% of the market" I don't see what the intellectual argument against monopolies is going to be. Sounds like something we want to encourage.
When IE was a monopoly way back at the dawn of the internet, the main complaint was it really sucked as a product but people couldn't switch away even if they wanted to because banks and stuff (tax office in my case I think :S) required Windows/IE-only features. That is what I'm against.
There are multiple companies that offer search ads, and they compete aggressively, they just compete primarily on the consumer experience so that they will be in a position to charge a higher price to advertisers because satisfying consumers makes their corporation-facing product (search ad slots) more valuable. This is what we as a society want. Consumer protection laws do not exist to protect businesses. Nobody is owed a viable business model. The cost of buying search ads is (mostly) dictated by how much other businesses are willing to bid for those ad slots.
> There would be multiple realistic options at good prices for companies who need office productivity software, Microsoft still has nearly 90%.
There are. It's a hard market to compete in, but Microsoft has several competitors in this space, notably Google Workspace, but also some lesser known ones like Amazon WorkDocs. Recently Apple has been targeting this market as well.
> If I wanted to sell in-app purchases, there would be multiple payment processors I should be able to use and I can chose who takes the smallest cut which would be way less than Play Store and App store
This topic has been beaten to death on HN, and nothing valuable will come of further discussing it. I'll suffice it to say that Apple's product is the iPhone ecosystem in its entirety, and defining a market as a single company's product and declaring them to be engaged in anticompetitive practices within that market amounts to a misuse of terminology.
If Google Search did something like refuse to return results if you searched for "Bing" or "Yandex", that would be an example of an anti-competitive practice in the search engine market, but when I test those searches the first results are the Bing and Yandex homepages.
If you want to talk about search ads, sure, maybe Google Search has a monopoly on search ads. If they do it doesn't seem like they wield that monopoly power to dictate prices, given that search ad slots are mainly auctioned to the highest bidder. And even if they do, so what? Businesses are not consumers, and claims that Google scalping advertisers negatively impacts consumers rely on indirect circuitous reasoning.
Say that again after Google delists your business and promotes that of a competitor instead.
This is all whataboutism. Either there is a problem here or there isn’t. If you find yourself comparing something to other corruption, that means it’s pretty questionable ethically.
"whataboutism" is about equal protection under the law.