MS Urges Antitrust Scuttling of DoubleClick Deal 234
Microsoft contends that Google's $3.1 billion deal to buy DoubleClick would hurt competition in the online advertising market. And Microsoft expects AT&T, Yahoo, and other companies to join them next week in protesting the proposed sale.
MS knows what it is talking about (Score:5, Funny)
Re:MS knows what it is talking about (Score:5, Insightful)
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imho there is a major difference between being a producer of advertising space and a reseller of it just like there is between being a farmer and being a food wholesaler.
Re:MS knows what it is talking about (Score:5, Insightful)
MS will have the ability to control it all via windows and MSIE (whereas Google does not have the ability to control except via natural). And while Google is tied in with firefox, MSIE still occupies 85% of the market. And with MS's past history, it should be obvious that they will tie all this together and kill off google. So what if they have to pay a later fine of 10-20 Billion? They will have created another monopolistic market that will earn them 2-10x that amount each year.
Re:MS knows what it is talking about (Score:5, Insightful)
So they want to stop Google from buying DoubleClick so that they could buy it themselves? Will they ensure that competition will remain vibrant if they buy it, or is competition just important when Microsoft is not involved?
Re:MS knows what it is talking about (Score:5, Insightful)
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But I agree Google (based on what we see on AdSense) is the lesser of evils here.
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If anything, Google will find it much easier to slip monopolistic abuses past regulators and customers because of the following reason:
1) For the most part, their 'prod
Differences (Score:5, Insightful)
Microsoft is a convicted monopolist and serial abuser of said monopoly power with an operational philosophy/culture that encourages this. Google isn't.
For the most part, their 'product' is invisible.
Maybe to the average consumer. Not to those buying online advertising.
While Google has many competitors in that marketplace, none of them get a lot of press. Or any press at all, aside from trade journals.
It's because none of Google's competitors have managed to duplicate both sides of their business:
(a) online advertising
(b) interesting, useful, highly usable information technology services
Google has good stuff on both sides of the equation. They sell ads on websites. They create websites that are premeire destinations on the web and sell ads on them. Nobody else really does both of them as well.
There are many competitors that do online advertising pretty well. And those are invisible to Joe Consumer, but not to those buying online advertising (hence the trade journals).
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Re:MS knows what it is talking about (Score:5, Insightful)
For the record, Microsoft doesn't really have anything to compete with Google in the advertising space right now.
That's the best argument there is for not allowing MS to purchase Doubleclick. Microsofts can leverage it's monopoly on the desktop to then control the online advertising business and then have monopoly on that as well. The way they used the same monopoly to gain monopoly control of the browser market.
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This sounds like what a friend of mine who works in the industry also has been saying.
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Could you or someone explain just how Microsoft would go about doing that? I suppose Microsoft might start offering adspace on Windows or on their default browser pages, but they could
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Wait a sec... if Microsoft buys DoubleClick, will the ads be changed so that I would have to use Internet Explorer to view them?
If so, I change my mind: Microsoft CAN buy DoubleClick, please!
Re:MS knows what it is talking about (Score:5, Informative)
They recently stopped using Yahoo's ad service and started their own. And it sucks.
You'd think being johnny-come-lately that they'd, you know, copy the good features of the other big 2 and support things like being able to upload entire campaigns for large #'s of keywords and ads. Nope, the best they can do is single ad groups, one at a time, in two sheets, one for words and one for ads, which isn't really faster than cutting and pasting them into a web form.
I recently had to change the text on several hundred ads and instead of merely importing a spreadsheet of the changes, perhaps generated for my by Google or Yahoo (which they do, despite the fact that it lets their customers try other ad sellers that support such a feature:) It took me about 10 minutes each on google and yahoo. I won't be done with MS adcenter for at least 2 days.
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Re:MS knows what it is talking about (Score:5, Insightful)
It strikes me, however, that even if this would constitute some sort of monopoly, it doesn't touch Microsoft in terms of harm to the consumer. First, I'm still not sure how Google can really abuse the market, even if they do control a large portion of it. People will still be able to use different search engines and different ad services. Plus, if Google somehow ruins the online ad market, it harms... well.... the online ad market. Am I the only one who's not entirely scared by that? I guess I don't buy the idea that, absent of ads, people would simply stop putting content on the web.
Maybe I'm screwy, but I care much more about the OS and Office Suite markets. I'm not expert enough to know whether they should take action to stop this deal with Doubleclick, but Microsoft appealing to anti-trust laws means they accept the validity of the principle.
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Do you own a business? If so, a monopoly controller of online advertising could fsck you just like any other business-critical service/material you buy.
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If you are looking to purchase advertising space and there is only one main company you can go to on the internet to see large numbers of hits, then yes, they can abuse you royally.
As much as I like to see Google do well, and detest MS buisiness strategy, I have to agree with them on this. They should not be allowed to develop a monopoly by purchasing major compeditors.
Re:I'm glad they lost (Score:5, Funny)
Wait... wasn't Microsoft.. (Score:5, Insightful)
Unhappy loser?
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Re:Wait... wasn't Microsoft.. (Score:5, Insightful)
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Re:Wait... wasn't Microsoft.. (Score:5, Informative)
Having seen MS and Yahoo's business practices, in a word, YES.
Before Microsoft became the god of the OS world, they pulled every trick in the book to try to kill people in the markets they wanted to be in. They killed the DOS market by tying sales of Windows 3.1 to MSDOS. When that was blocked, they released Win95 under the lie that MSDOS was integrated into it and not actually a separate component (which was later proven a lie when people found out how to replace MSDOS with other versions.) Almost the same thing happened in the IE/Netscape war for dominance.
And when Microsoft entered the system utilities world, they killed of their competitors by outright stealing. Can you honestly say you've seen something like the STAC/Doublespace issue pop up with Google?
There is a very legitimate excuse to say "at least it's not Microsoft", whatever Google's 'evil' has been, it's been outside their business practices towards their competitors. Their mistakes have been working with people the Western world frowns upon. Not trying to channel the spirits of every robber baron that's ever lived. There is no reason to currently think they would turn into the next Microsoft.
Re:Wait... wasn't Microsoft.. (Score:4, Insightful)
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Having one company knowing that much about a person is somewhat scary, even if the company has a "Do no evil" motto.
What Google has on me, it has legitimately through my consent. And contrary to your fears, they don't have "complete control over most the information that flows over the net". They don't have ANY control over what flows over the net. If there were two companies that could claim that it'd be MS and AT&T.
Fears over what is out there on you are pointless, not because what is out there isn't dangerous. But because Google is not alone in having it, and is far more responsible in handling what they have
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Look, it's this simple:
Microsoft has been convicted of illegally leveraging a monopoly.
Google has not.
Now, which one would you rather own DoubleClick, and why?
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Just because it's not illegal doesn't mean it's a good thing. Illegal or not, monopolies are bad for consumers in almost every case.
You can go on all day about the evils of Microsoft and Yahoo, and how superior Google is, but it doesn't make a Google monopoly any more desirable.
Not a good reader? Last line it all. (Score:5, Insightful)
Google is a natural monopoly and has earned their position. Until they tie it to something or pull an illegal act, they should not be regulated (but should be watched to make sure that they do not do a MS). But it is in the consumer's best interest to not allow this.
MS, OTH, has shown that they are an illegal monopolists (multiple times) and will obviously continue their actions. Always. Why? Because it is FAR cheaper to cheat and pay the trivial penalties that govs. apply, then it is to have to compete fairly. They should also be banned.
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This is just sour grapes from Microsoft side.
Re:Wait... wasn't Microsoft.. (Score:4, Insightful)
Microsoft concerned about Anti-Trust? (Score:5, Funny)
Re:Microsoft concerned about Anti-Trust? (Score:5, Funny)
Wow...that means... (Score:2)
eBay & PayPal (Score:2, Insightful)
MS Urges Antitrust Scuttling of DoubleClick Deal (Score:5, Funny)
Did you mean: MS Urges Scuttling of Antitrust
Hard to argue (Score:5, Insightful)
When they can afford to lower costs for advertisers, having no competition means they don't have to bother. When they can afford to pay more to webmasters, no competition means they don't have to bother. Even a consumer can get screwed by this, since it'll be all but impossible to visit a site that isn't covered with DoogleClick ads, making 'voting with your feet' impossible. Very rarely does a corporate merger get to screw two sets of customers *and* the general public in one swoop.
For those who say "But they did it with YouTube, so no problem, right?"... YouTube isn't really comparable, since there's a lot of other video sharing sites. YouTube was the biggest, but it's by no means unassailable and it's users arent waiting on a cheque.
Regards,
-Steve Gray
-Cobalt Software
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Get myself an account otherwise people might start attributing things to me.
Finish downloading that midget porn torrent.
Regards,
-Steve Gray
-Cobalt Software
Re:Hard to argue (Score:5, Insightful)
Hmm... Yeah, no competition. I'm going to say it. "But they did it with YouTube, so no problem, right?"
YouTube IS comparable. DoubleClick is the biggest, just as YouTube was, and DC is NOT the only internet advertising out there. Here, lemme look through my adblock filters. These were all created BY ME, so they aren't just added randomly. I actually saw and was annoyed by these ad companies.
qksrv.net
atdmt.com
bns1.net
adquest.nl
atwola.com
tribalfusion.com
burstnet.com
falkag.net
viewpoint.com
imgehost.com
interclick.com
valueclick.com
maxserving.com
interpolis.com
belnk.com
zedo.com
advertserve.com
netshelter.net
intellitxt.com
contextweb.com
So tell me again how there's no competition in this market?
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Now I'll have nightmares of dancing Bonzi buddies again.
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With each teacher at a computer (we use laptops), walk them through how to view and clear the cookies in Firefox. With the cookies cleared, give them five or ten minutes to browse their favorite websites, check their email,
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http:///banners/* [banners]
http://ads./ [ads.]
http:///adlog/* [adlog]
http://ad./ [ad.]
http://chkpt./ [chkpt.]
http://.ads./ [.ads.]
http://advertising/ [advertising]
*/ads?*
https://ads./ [ads.]
*/adview.php?*
*/ad.*
http://adzones./ [adzones.]
*?clickTag=*
*/img/ad_*
http://adserver./ [adserver.]
*-ad?*
*/ad/*
*/bnr/*
*/ads/*
*/AffTrack.*
http://adserver/ [adserver]
http://partners./ [partners.]
*/phpAdsNew/*
*/kli
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If there ever was... (Score:3, Insightful)
I trust Google about as much as I trust any other corp (not much at all) but to see Microsoft crying in its oatmeal is just poetic.
--
BMO
Obig. simpsons (Score:2)
Best summary, ever!
I have a very bad feeling about this (Score:5, Insightful)
Doubleclick was worth more to google because they could multiply it against the adsense data they already own. Microsoft didn't have as much to gain.
Search is the new DNS. Anybody who owned and controlled all of DNS would control the internet. Most of the search market is controlled by google.
Google is only limited in size by the fact that they are an internet company, and the internet is finite. But if they wind up owning much of the internet its not going to be good for the rest of us.
I would love to be able to look forward 10 years and see exactly where this is heading. The don't be evil bit may just be ironic by then.
Re:I have a very bad feeling about this (Score:5, Insightful)
Is it really? According to Alexa, the top three websites in the world are, in order, 1) Yahoo, 2) msn and 3) Google. Maybe all the people who visit the former two do so for the news, or the groups, or the mail, but I'm not sure your hypothesis is automatically valid. Google sure seems to be the search engine of choice among geeks, but what about Joe Random and Suzie Sixpack? I don't think you can just extrapolate without doing any actual research here.
Wow, talk about ominous gloom-and-doom prophecies. I'd love to be able to look forward ten years to see where everything's heading, too, but neither of us can. I think the term "FUD" is quite appropriate here: what you're trying to create is fear, uncertainty, and doubt in the absence of any actual arguments.
Oh yeah, and since I just read your comment again, let me give another example:
I'm sorry, but that's FUD, too, although some rather underhanded one. The reason is simple: while the question "how much have they changed Linux" is a valid one, your second question and the answer you give to that not only already implies that the answer to the first one is "a lot" but also implies that others would not only benefit from those alleged patches but also that Google is holding them back for the sole purpose of not contributing back to the community - being evil, in essence.
And while Google's contributions to the kernel are indeed much smaller than those made by other companies, that's still just FUD until you actually come up with some solid evidence to back up your claims. But then, the fact that you don't actually go ahead and *openly* accuse Google of doing anything unethical is probably evidence that you do not, in fact, have any.
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I thought it was well understood that MSN isn't being "visited" with intentional clicks. It just happens to be the default home page of 100 million people who don't know they can change it. If someone wrote a virus that changed everyone's IE home page to something other than MSN, it would fall out of the top 10 easily, and maybe off the charts altogether. I have never seen anyone try to go to MSN for any
MSN (Score:2)
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That's perfectly valid, and that's exactly what I do. I use Yahoo exclusively for mail, groups, news, etc.. and I use Google exclusively for search and maps and maybe a few other things.
LWN.net knows (Score:4, Interesting)
Google submits a significant number of changes to the mainstream Linux tree, as shown by (among other things) this recent lwn.net article [lwn.net]. For 2.6.20 they landed up rougly between Intel and HP ... both of whom have much more reason to be working heavily on the kernel, especially on the server end of the market.
Of course, there's no way of knowing if they maintain whole new optimised subarches, special file system drivers, etc in-house... but I suspect that anything they do keep private is mostly not released because it won't be very useful outside Google. Perhaps they're limiting access to things that'd only be useful to their direct competition in immense data warehouses - but y'know what, I don't care myself. I wouldn't be surprised if the kernel folks would reject any excessively specialised or over-complex changes anyway.
That said, as you pointed out little of what they do is releases as OS. More than most companies (at some) - including some nice search and data handling tech and some handy libraries - but hardly the crown jewels. I for one do not find this overly troubling.
I do, however, share your spine-crawling feelings with regards to the DoubleClick association. I've never been fond of DoubleClick at the best of times, and don't like the thought of their data being combined with Google's.
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- The LWN data is pretty limited (being based on line deltas / number of commits) and a single sample
- My assumptions about what they keep private are exactly that, but based on the fact that they do release more tech than most, and that it's in their interests to get useful things that are
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Google is a marketing analytics company, they have no intention of pissing off their statistical sample space with obtrusive crap through doubleclick... Gmail, Froogle, Google News and Maps, Youtube, and Doubleclick are just a means to an end. If you still haven't figured it out I'll spell it out for yo
Whither Google? (Score:3, Interesting)
Indeed. But I reckon that's a very mixed blessing for Google.
Google's ability to rank the search results is based on links from other pages. Now, when the web was young and blue-eyed and men everywhere were free, they navigated using lists of bookmarks, and by following links. In many cases they published their lists of bookmarks on their web sites, so that others could discover interesting sites. This meant that most interesting sites had lots of links to them, which Google
Obligatory reality check regarding Google (Score:4, Insightful)
Making money for their stockholders.
There's a fluffy bunny love for Google that everyone has but they may as well change their motto from "Do no evil" to "We do less evil than everyone else". A monopolist Google is no better than Microsoft. I'm not a fan of Microsoft, but giving too much control to any company, much less a publicly traded one, is a horrific idea.
Google is going to do what is best in their corporate interest.
Surprised? Don't be. It's business
The cynical position is usually right. (Score:5, Interesting)
We should be clear on one thing: There's nothing wrong with getting a monopoly by outcompeting or outsmarting others.
What's bad is using your monopoly position to deny other vendors access to the market. This means not only refraining from things that only a monopolist can do, but refraining from doing things that have uniquely anticompetitive effects when done by a monopolist. The fundamental axiom is that competition is good.
Google may be a monopolist as far as desktop search is concerned; if so it's probably the most unstable monopoly in history, thanks to net neutrality. We could all simply switch to yahoo tomorrow if we wanted to. The greatest danger relating to Google is in their service APIs, in which they could potentially induce developers to build applications on top of Google services, then crush the developers by the user of secret extensions. But they have shown no sign of doing that yet, because for the time being most of the innovation around Google APIs is coming from Google.
As odd as it sounds, companies have character, like people have character. Some companies (e.g. Lotus) never seem to be able to come up with a decent user interface, whereas surely all they need to do is hire some HCI experts early in the development cycle. Microsoft got where it was by cunning and aggressive competition. Nobody begrudges the huge windfall they got by snookering IBM over PC-DOS. They saw the potential and were looking farther down the road than IBM. But when they used their power to punish distributors who distributed competitor's products, they were doing something illegal and they knew it. The temptation is stronger for them because of the company's aggressive, strategic character.
Google is a company with a fundamentally different character. They are much more innovation driven than MS, which is much more focused on reacting to what the competition is doing. The only way to survive in a MS dominated marketplace is continual but disciplined innovation. The problem with companies that tried to compete with Microsoft is that they tried to compete with Microsoft. It's critical not just to think outside the box, but stay far from the box as possible, because MS owns the box.
Microsoft has forced the industry into a post-postmodernist style of competition. The postmodern strategy exploits niches that are social constructs of the vendor community. The post-postmodern strategy is to fulfill customer needs more effectively. It's back to basics, with a twist; you still have to look at what the competition is doing, but instead of conforming to that, you have to harmonize but not conform. Google builds its services on top of standards, but it builds them with an unique Google style and feel.
This switch in competition style is why we see so much more major vendor support for open source. Not that putting your thumb in the competition's eye isn't desirable anymore, but it's lower on the chain of values. In an industry dominated by one vendor, there can only be one winner at that game. So cooperation via open source becomes a possibility. Google is not a major player in open source, but the reason they often get lumped in with vendors who are is that they share common characteristics of having a longer term, customer centered strategy.
Comment removed (Score:3, Funny)
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How big is this market anyways? (Score:5, Interesting)
So how big could Google's ARPU grow? In a country like The Netherlands 5.7 billion a year is spent on advertising to about 7 million households. This makes 67/household/month (and this number isn't growing too much) This is the total advertising expenditure on the national market and includes all major media: Newspapers, television, direct mail, cinema, magazines, billboards, internet etc etc etc. If Google can get part of that on a global scale, it amounts to a major amount of money. But now look at it from ARPU point of view. It would be hard for Google to get more then 10-15% of this market space ($6-$10/household/month) because they would have to replace all the existing ways of doing advertising and these are still powerful and sustain many content business models)
If a telco can his hands on google's revenues, they might be able to knock a few dollars of the price of a broadband connection. But $6-$10 isn't going to pay for the line and the costly upgrades. Just go and look up the financial information of telco's to see how big they are and how much money they spend on a yearly basis. Google is dwarfed by that. (Broadband reports said that telco's would spend $41 billion on network upgrades just this year, Google made only $10 billion last year) Odlyzko was right when he said: "Content isn't King" and we can add to that "Advertising will never be king".
So when AT&T says that Google is making money over their networks. We are talking about change compared to what AT&T is charging its customers.
Will Google get a dominant position? Only if they offer content providers the most money for showing a banner and advertisers the greatest amount of clickthroughs. That is why Microsoft and Yahoo are loosing out. The offer less adviews per day, that generate less clickthroughs per thousand adviews and pay less per click and offer advertisers less conversions. Why would you use them? Nobody in the equation is getting better by using Microsoft and Yahoo not the content provider and not the advertiser.
Now lets hope Google pays some attention to my pitch for Adsense for Charity [blogspot.com]. The idea is that anyone using Adsense can designate a percentage of their Adsense revenues for good causes or open source projects. Even if we are only talking about a very small percentage of Adsense users doing this, we still would be talking about millions of dollars per year) So please help out in spreading this idea, by linking to it or spreading it onwards.
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Microsoft was joined today by AT&T, a company that traces its lineage to the Ma Bell monopoly that was broken up in the mid-1980s. "We think antitrust authorities should take a hard look at this deal and the implications," said Jim Cicconi, senior executive vice president for external affairs at AT&T. "If any one company gets a hammerlock on the online advertising space, as Google seems to be trying to do, that is worrisome."
true, true, but (Score:2, Interesting)
Sure, Google conspiracy theories may be a bit of an exaggeration, but I think few people would disagree
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Setting aside the default "screw M$" spinal chord reaction, can't we concede that they do have a point here? The fact that they are guilty of being monopolists themselves doesn't mean they have nothing that's worth saying. Google's latest acquisitions have definitely set them on a monopolistic path as they expand ownership over content providers and now methods of advertising through those providers.
I think everyone forgets that MS bought Gator. Yep, that was some serious Internet business savvy.
MS might well have something to say, but its real difficult for it to not sound like sour grapes. As for AT&T, hell, they are having enough trouble trying to kill Vonage and Skype. Killing off Google is a bit out of their league right now.
Sure, Google conspiracy theories may be a bit of an exaggeration, but I think few people would disagree that an internet largely dominated by Google and Google-backed products, generating more Google revenue (positive feedback, anyone?) would entail the typical monopoly shortcomings (less innovation once the market is consolidated, arbitrariness, a bigger buffer zone for failed services, etc.). Right now I can't help but feel that Google is almost administering a utility, like water or electricity. Half of what I do online is powered (or directly coded) by Google -- ensuring a major share of the advertising revenue wouldn't be so different to ensuring they get most of their rightful toll/tax money for providing those basic services. Sure, there's nothing wrong with these services so far, but do we really want one guy centralizing all the cool net stuff? I for one, have to hand this one to our traditional Microsoft overlords.
There is one simple reason that Google is becoming dominant: They build good products. They apparently are so good, you use them all the time. Google took the incredible
potkettleblack is right... (Score:2)
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scary cookies (Score:5, Insightful)
That's the scariest part of the article... that a publication like the NY Times still hasn't figured out what a cookie is, or worse, has but yet misrepresents it to scare people over to their POV.
Just wondering (Score:3, Insightful)
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I wanted MS to buy DoubleClick (Score:5, Interesting)
Oh well, I can dream can't I?
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I don't know what's funnier.... (Score:2)
I mean really, couldn't they at least rely on a more classy monopoly like DeBeers? Or am I missing it and they want their complaint to be made by companies that have been sanctioned themselves for violations of the anti-trust laws?
Can't be all bad (Score:2, Offtopic)
Too... much... irony... (Score:2)
with...
Bwooo hoooooo uhuhuhuhu huuu uhuhu whoooo (Score:2)
antitrust was not the littlest of concerns for microsoft while it was stamping on the competition back in 90s.
see, that was what went around, but this, THIS is what comes around. (from scrubs)
Advertising Monopoly? (Score:3, Insightful)
Ads aren't like fuel oil, precious metals, telephone communication,
business computers or operating systems. A customer's lack of choice
in consuming advertisements means less sales for the advertiser.
The advertiser would then be unwise to continue allocating money towards
a loosing advertising channel and the problem would correct itself.
It's hard enough to imagine a monopoly on search with 3 giant companies in
the market but a monopoly on advertising is just a silly concept to me.
Whining (Score:2)
One... Two... (Score:2)
Wait. That's Microsoft, AT&T, Yahoo... one, two, three -- and others!
Sounds like there's plenty of competition in this space.
"Microsoft contends" (Score:3, Insightful)
Geez, this is so freakin' stupid, I can smell it from the other side of the pond. It's a damn money game, if you want that dblclick so much, pay more, it's so easy ! Why come out in the light with "arguments" which smell so badly and rotten of piles of bullshit that it makes everyone and dog with at least as much brain as a chicken laugh out loud in pain ?
Of course they don't like the idea of Google taking something away from their nose. Of course they would want a bigger part of the online ad cake. Of course they would do anything to stop Google becoming more powerful in the area. And yet, instead of paying the price, they start antitrust accusations ? Now come on, this behavior is downright ridiculous. And of course they would want yahoo and co. on their part in this case, despite them knowing all too well what would happen to them if MS put their hands on a pig part of the online ad business. Right ?
It's easy to take away others' lunches while you're the big guy. Thing is, some things aren't meant to last forever. Go figure.
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Should we give another company the chance to do damage the market by abusing monopoly powers?
Re:As the say... (Score:5, Informative)
And Microsoft have been duly punished.
I remember MS being convicted. I do not remember them being punished. IIRC, the administration changed and MS got away nearly unscathed.
Re:As the say... (Score:5, Insightful)
Since it isn't illegal to be a monopoly, just illegal to abuse the position. And since Google hasn't acted like Microsoft by ever using it's position to wipe out competitors. Yes, lets.
Those who act responsibly should be allowed positions of responsibility. Those who act selfishly, should be barred from those positions.
Re:$3.1B in gif ads? (Score:4, Insightful)
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How the hell is Doubleclick worth so much money? I mean.. are that many people clicking ads?
If that's your question, the relevant one would be how Google is worth so much more than even that, since clicking ads is their entire revenue stream too (give or take 0.1%).
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Click...don't click - both are data points.
Regardless of your particular response to an ad, the real point is that enough people do click to make data mining a huge industry.
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