Members of Congress are ratcheting up their concerns about Google’s behavior in the marketplace. On March 11, Senator Michael S. Lee (R-Utah)issued a media release calling for antitrust oversight hearings on the Internet giant. In his statement, Senator Lee said: “Google’s position as the preeminent search engine may be abused so as to disadvantage competing vertical search sites to the detriment of advertisers and internet users.”
Senator Lee also sent a letter to Senator Herb Kohl (D-Wisc.), Chairman of the Judiciary Antitrust Subcommittee, applauding him for his focus on Google and to let him know he looks forward to oversight hearings to determine whether the company is harming competition.
Certainly, America needs a fair and level playing field for small and large businesses alike and I applaud Senator Lee for outlining the issue is a reasoned and easy to understand manner. Over the past few years small businesses have expressed growing concern about Google, particularly in regard to Google’s growing market dominance and advertising practices. Small businesses have grown more dependent on consumers finding them on the Internet, and if the practices of one dominant player threatens their online presence this can be devastating.
While the tension between Google and the small business community has been growing for some time, Google's proposed acquisition of ITA has shed new light on the concerns of entrepreneurs. Google already controls a large share of travel searches today and they would have the power to eliminate competition with an acquisition of ITA.
Senator Lee is a dynamic new member of the Senate with an impressive background in legal, constitutional and technology issues. His call for greater scrutiny of Google, and his point that increased antitrust scrutiny now will decrease the need for greater regulation down the road, should be heeded.
“Vigorous antitrust enforcement is almost always preferable to a system of government regulations, which will inevitably be more costly and less efficient than a free market unencumbered by anticompetitive restrictions,” wrote Senator Lee in his letter to Chairman Kohl.
As we pointed out in a letter to members of Congress last month, "Because Google dominates and limits competition in search and search advertising, small businesses are at the mercy of this single company's business practices. Google already dominates search and search advertising with well above 70% of the search market and it already has 30% of all travel searches -- the most of any single provider." We are very pleased to see Senator Lee take up this cause.
Karen Kerrigan
President & CEO
Showing posts with label Google. Show all posts
Showing posts with label Google. Show all posts
Monday, March 14, 2011
Friday, November 07, 2008
Certainty in the Online Advertising World
Here’s some good news for small business owners concerned about fewer choices and potentially higher prices in the online advertising world. Google and Yahoo! have abandoned their advertising agreement, which means more focus by these companies on competing, innovating and providing small businesses with more useful tools to help push their products and services during these tough economic times.
Faced by definite legal action by the U.S. Department of Justice (government lawyers told the companies they would block their agreement using their antitrust powers), and a large chorus of advertisers and businesses that cried “foul” about Google and Yahoo! joining forces, the companies made the decision to simply move on.
"The arrangement likely would have denied consumers the benefits of competition –lower prices, better service and greater innovation," said Thomas O. Barnett, Assistant Attorney General in charge of the Department’s Antitrust Division.
According to the Department, the agreement would lead to 90 percent or more market domination in Internet search advertising and search syndication.
A statement by Google said that moving forward with the agreement presented a lose-lose for the company and its relationships. “Pressing ahead risked not only a protracted legal battle but also damage to relationships with valued partners. That wouldn't have been in the long-term interests of Google or our users, so we have decided to end the agreement,” according to the statement.
Although Yahoo! said the agreement would have helped to “accelerate its investments in its top business priorities through an infusion of additional operating cash flow,” ending the agreement will not effect the company’s commitment and ability “to innovation and growth in search.”
“Going forward, Yahoo! plans to continue to provide the cutting-edge advances in products, platforms and services that the industry needs and expects, and intends to be the destination of choice for advertisers and publishers who want to reach one of the largest and most engaged populations of consumers on the web,” said the company in a statement.
As many entrepreneurs well know, the Internet has been the great equalizer in enabling smaller firms to find and develop new markets, and broaden their marketing efforts in efficient ways. With the close of their agreement, both Google and Yahoo! say they are determined to stay committed and focused on their customers and innovations. That’s a great outcome for small businesses.
Karen Kerrigan
President & CEO
Faced by definite legal action by the U.S. Department of Justice (government lawyers told the companies they would block their agreement using their antitrust powers), and a large chorus of advertisers and businesses that cried “foul” about Google and Yahoo! joining forces, the companies made the decision to simply move on.
"The arrangement likely would have denied consumers the benefits of competition –lower prices, better service and greater innovation," said Thomas O. Barnett, Assistant Attorney General in charge of the Department’s Antitrust Division.
According to the Department, the agreement would lead to 90 percent or more market domination in Internet search advertising and search syndication.
A statement by Google said that moving forward with the agreement presented a lose-lose for the company and its relationships. “Pressing ahead risked not only a protracted legal battle but also damage to relationships with valued partners. That wouldn't have been in the long-term interests of Google or our users, so we have decided to end the agreement,” according to the statement.
Although Yahoo! said the agreement would have helped to “accelerate its investments in its top business priorities through an infusion of additional operating cash flow,” ending the agreement will not effect the company’s commitment and ability “to innovation and growth in search.”
“Going forward, Yahoo! plans to continue to provide the cutting-edge advances in products, platforms and services that the industry needs and expects, and intends to be the destination of choice for advertisers and publishers who want to reach one of the largest and most engaged populations of consumers on the web,” said the company in a statement.
As many entrepreneurs well know, the Internet has been the great equalizer in enabling smaller firms to find and develop new markets, and broaden their marketing efforts in efficient ways. With the close of their agreement, both Google and Yahoo! say they are determined to stay committed and focused on their customers and innovations. That’s a great outcome for small businesses.
Karen Kerrigan
President & CEO
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