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Friday

9

March 2012

0

COMMENTS

Google Fined for Being Too Useful

Written by , Posted in Free Markets

In the world of big government, providing something of use to consumers is to be frowned upon:

Google has been ordered to pay a fine and damages to a French mapping company after a court ruled that the search giant was guilty of unfair competition and “undercutting competitors” by making its Google Maps program free.

According to Agence France Presse (AFP), Bottin Cartographes, a French mapping company that provides essentially the same service as Google Maps for a fee – brought a suit claiming that Google was “abusing” its dominant position by making its service free.

Google’s strategy is, apparently, to undercut competitors by “temporarily swallowing the full cost until it gains control of the market,” AFP reported.

A Paris-based commercial court agreed with Bottin Cartographes and ordered Google to pay 500,000 euro (£415,000) damages to Bottin Cartographes, as well as a fine of 15,000 euro (£12,500).

“We proved the illegality of Google’s strategy to remove its competitors,” said Jean-David Scemmama, Bottin Cartographes’ lawyer. “The court recognised the unfair and abusive character of the methods used and allocated Bottin Cartographes all it claimed.”

This sort of thing is hardly unique to France. The US as very similar, and similarly stupid, laws on the books. But this case really puts the lie to advocates of protectionist policies who claim they are for the consumer. They are not. They are for shafting the consumer.

Look at the language they use and how deceptive is. They mask their protectionist, anti-consumer agenda under the rhetoric of competition. But this has nothing to do with competition. If you assume their logic to be true (which is unwarranted, as there as been zero indication that Google ever intends to charge for Google Maps), there will still always be competitive pressure. So long as another firm can enter the market at any time to offer a competing service, Google will have to offer market competitive prices. The only way to perpetually keep out competition is either to use the force of government, or to perpetually price below market – in other words, by keeping it free. How in the world is the latter possibly a bad thing for consumers, the economy or society?

Saturday

2

July 2011

0

COMMENTS

Will Google Learn not to Play with Fire?

Written by , Posted in Big Government, Government Meddling

Google has long been a proponent of Big Government. They’ve pushed net neutrality and coddled up to the Obama administration…and what has it all got them? A DoJ investigation and the necessity to waste a bunch of money hiring lobbyists to defend themselves from the terrible crime of being successful and creating jobs:

Google said Friday it will hire a dozen new lobbying firms in a sign the search giant is taking the Federal Trade Commission’s upcoming antitrust investigation seriously.

“We have a strong story to tell about our business and we’ve sought out the best talent we can find to help tell it,” said a Google spokesperson via email.

News broke last week that the FTC has subpoenaed documents for an upcoming investigation into whether Google has abused its dominance of the search market, the first broad antitrust probe of the firm. In response Google has retained a host of Washington lobbying firms to give lawmakers their view on issues such as privacy, copyright enforcement and competition in the search market.

Google ought to be learning a lesson from all this: If you play with the Big Government fire, you’re eventually going to get burned.

Monday

27

September 2010

0

COMMENTS

Net Neutrality Is Still An Important Issue

Written by , Posted in Free Markets, Government Meddling

Net neutrality is a “solution” seeking a problem. Contrary to the excess of doom mongering from certain corners, there is no evidence that an absence of government control will result in an internet where data and information discrimination is the norm. The evidence suggests just the opposite, in fact, as internet censorship across the world is always a product of government influence or control.

There is no potential problem that, lacking a government enforced net neutrality standard, market competition cannot handle. If an ISP were to slow down access to a particular website because that site owner did not pay a kickback fee, or because the ISP objected to its content for political – or any other – reasons, the public outcry would be tremendous. Customers would flee that company in droves, and it would be promptly put out of business. There is no check more powerful than that of free consumer choice.

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