Google and EC: The Exclusives May Be a Problem Like Death
July 20, 2016
I read “European Trustbusters Torpedo Google.” The write up focused my attention on Google exclusives. The point is that Google allegedly used exclusive constraints to keep its alleged monopoly chugging along. I highlighted several statements in the write up; for example:
in these agreements with Direct Partners, Google has breached EU antitrust rules by imposing the following conditions:
- Exclusivity: requiring third parties not to source search ads from Google’s competitors.
- Premium placement of a minimum number of Google search ads: requiring third parties to take a minimum number of search ads from Google and reserve the most prominent space on their search results pages to Google search ads. In addition, competing search ads cannot be placed above or next to Google search ads.
- Right to authorize competing ads: requiring third parties to obtain Google’s approval before making any change to the display of competing search ads.
The write up contains other zingers; to wit:
- “But twin conjoined monopolies AdSense and search create barriers to competition.” Ah,conjoined.
- “Trustbusters in Europe, and also the United States, look enormously unfavorably at monopolies that engage in exclusive agreements, whether implicit or implied, that protect market dominance—or expand it.” Exclusives, goodness.
Alphabet Google has, according to the write up, 10 weeks to get back to the EU. Will the dog eat Google’s homework again? Google is working to solve the problem of death? Will Google find a solution to the death and taxes challenges? Trivial, right?
Stephen E Arnold, July 20, 2016
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