Google’s Antitrust Problems II

I think that I started this discussion at just the right time. According to cnet, South Korean officials have raided a Google office over anti-competitive practices relating to Android. They claim that it’s anti-competitive to force companies to use the Google search engine with Android if they want Google applications and the Google logo on the device. Personally, I’m not really sure how this is anti-competitive, or at least why Google is being singled out for this. Apple does the same thing, as does Nokia and Microsoft. When I still lived in the US, I remember Verizon forcing Bing on me and changed my default internet settings on my Blackberry (granted Korea couldn’t go after that one) but the idea to me is bizarre.

However, this is a great way to discuss how Google, in a broader sense, is at risk for antitrust action from many national governments. In my last post I explained the idea of market foreclosure, which Microsoft used in an attempt to capture a monopoly in the server market as they had in the PC market. South Korea will most likely be arguing that Google is using a captive audience to force their search engine on their users. In the bigger picture, I think this sort of tactic will likely be used for other markets. For example, Google is using their large market share, and the social capital they’ve gain from being a trust worthy site, to build email products, then office suites, map and geolocation services (with recommendations), and of course blogging sites like the one you’re currently reading. Since I have a google account, from way back when Gmail first was created, I’ve gotten all these additional features for free. i haven’t had to do anything and they just appear as services that I can use.

Even if I’m not logged in to Google and I go to Google.com there’s a huge selection of services that I can use without logging in. However, they become more powerful as soon as I log in. Google is using their monopoly of search engines to leverage users to use other products they’ve created. Let’s say Yahoo! decided to try to create an office suit in the same manner as Google and basically try to emulate Google in every way with all of their products. I’m sure that some of the users there would take advantage of the free document services. However, I also believe that Yahoo! and Google cater to different portions of the market. Yahoo! has become the defacto home page to an older crowd than Google. Which could mean that the users of Yahoo! may not want the same products. I have a Yahoo! account, which I only use for Fantasy Hockey and Football. I never use it for email, I never search the web using Yahoo! I only use Google. Why? Because it gives me the results I want.

So, now that we understand that Google has been leveraging their search market share to move into other markets what kind of impact does that have? I think that it will actually prevent other people from using other services out there. However, I think that with internet systems there is no real reason to keep with one product family over another. It’s a matter of trust. I think that people trust Google more than other companies, which is why they are willing to use them for other products. I couldn’t imagine people using a Facebook Docs the same way that people use Google Docs.

In my next post I’ll discuss more of these implications of these topics. I will also compare some of the Google products to Windows Media player and how something that seems like a big deal today, may not be a big deal in a year or two. Technology moves so fast.

Google’s Anti-Trust problems

When Google announced the planned acquisition of Motorola Mobile investors weren’t exactly thrilled (see here here and here). Most of those investors are concerned over a lot of the issues i discussed in my last few posts (here and here), patents and potential issues with Android’s future. There are also discussions online about different types of antitrust and privacy probes that Google is being subjected to.

Some of these privacy probes are from the EU, such as the German probe into the Google Maps cars connecting to open networks and keeping records of these networks. Another recent issue comes from Google Ads itself. Where Google was advertising for illegal pharmacies. This one Google settled for $500 million, which may have been an effort to keep away antitrust investigators or at the very least prevent their attorneys from being distracted.

In the previous article it notes that European regulators are looking into Google’s ad practices to see if they are being anti-competitive. This could be a legitimate concern. Google has been purchasing a large number of ad related companies recently. However, in the long run I don’t think that purchasing of companies will make that much difference as it’s very easy to get into the internet ad game. New companies will be springing up on a routine basis.

I think that the EU will eventually look at Google in the same manner they looked at Microsoft in 2004. They were using an economic analysis tool called foreclosure. It’s a fairly simple manner of looking at markets and market share. Let’s say you have a monopoly in some market like desktop operating systems. You also know that the desktop market isn’t the only market out there, there’s another market related to servers. What are servers? Well they serve different functions but some of them are webservers, so when you go to a website that has some animation or data to be pulled there’s a webserver there that is connected to the website. This webserver pulls the required data to be displayed and in many cases actually creates the desired images. Other cases are for databases. The computer is extremely fast and can handle a massive amount of data processing at a time. Facebook for example uses a large number of them.

So, you already have control over the desktop market, and you want control over the server market. You can make it easier or harder for your desktop machines to connect to another machine. Basically you control the language in which that happens. You can make it easier for competing operating systems to decode your language. If you want to make it easy to connect a windows desktop to a linux server, you basically give the linux OS guys the lanugage and words to use to make the connection happen. If you don’t want them to connect you make it very difficult so they have to create their own rosetta stone to figure out how to connect to your machines. (I know this isn’t a very technical way to describe what’s going on here, but not everyone is computer literate that reads my blog)

Through this leveraging of your monopoly on desktop computers you can push your way into another market. In some ways Google is doing exactly this. In my next blog I’ll discuss a little bit more about what happened with Microsoft and how Google is attempting to foreclose on other markets using their search engine monopoly as a starting point.

Google’s misstep with Patents

Google has been in the news a lot recently related patents. Why? Well, I think they’ve managed their intellectual property in a naive way. Not an incorrect way. Just one that wasn’t keeping up with the behavior of competitors and trolls in the market place. To date Google has 782 patents, for a company that has produced as many innovative products as it has, this is not very many. Google has been around for 13 years now, founding in 1998. Comparing Google to Apple, looking at patents filed after 1998, is not a good comparison. Apple has filed and received 2600 patents. Sure they’ve been busy working on products and had an established market already. The iPod had already come out by then. Regardless, this indicates that Google has made a major misstep in regard to patents.

I fully applaud Google’s efforts to minimize the number of patents they own. It’s clear from a glance at the patents, they have focused their patents on the ability to search for data as well as data management. They are sorely lacking when it comes to most software. This is most likely why Google has licensing agreements with companies like Intellectual Ventures. To combat the growing web of lawsuits surrounding it’s handset manufacturers and developers Google has been on a spree of both purchasing patents (1,000 from IBM and 12,000 with the purchase of Motorola Mobile) and propaganda against software patents.

Motorola will give Google the patent expertise and experience at defending its patent claims as well as a huge number of patents it will need to defend. I believe this will create a great change in the way that Google deals with intellectual property in general. I’m not entirely sure this is a good thing either. Google may take the route of IBM which both patents things specifically so that other companies can’t patent them and publishes technologies in obscure journals which can be later used to invalidate patents as a form of prior art. However, Google could easily take the route of Apple. This would be extremely bad in my opinion. The route where Google continues to invest in new technologies but patents everything and then makes it difficult for other companies to use that technology. Google has the innovative capabilities to become a huge patent troll.

I think the only good that would come out of that is if Google went after patent trolls.With open source technologies some of the problems with software patenting does go away. As anything with an open source license is technically released into the public and becomes part of the prior art. Unfortunately, that’s also a huge problem with open source. It would be impossible for a patent examiner, who typically has 3 days to approve a patent, to actually find a given software technology which is already being used as open source.

Overall, I think Google is currently attempting to address its misstep with patents. I think that Google will push for patent reform for software patents. I think that with a large enough group of people, including billionaires like Mark Cuban, there could be a significant change in the manner in which software patents are issued. Gaming companies, search engines, and software developers need to work together to address this issue though.

The different meanings of internet freedom

This week we have seen some incredible riots in London. Interestingly, some of these riots were actually predicted by some of the youths a few weeks back, at the end of the video one of the youths mentions that there will be riots. David Cameron had some choice points about the use of social media, Ars Technica has a good discussion about the different sides of social media. However, it is mostly discussing it in terms of causing the riots as well as leading to the clean up of the cit of London.

I find the reaction that we’re seeing on the internet to the usage of Black Berry Messenger and Twitter interesting. These are the same forces that while in affect in countries like Tunisia and Egypt, social media were forces to be praised. However, now that they are being used in England instead they are being vilified. Also, we are seeing pressure from the government to use social media to arrest the members of these gangs.

First, I think what these groups did was horrible. If I was able to I’d try to help the victims of these crimes. However, we need to be aware of the precedence we are setting in the response to this. While there are some differences in the actions, there was looting in Egypt and Tunisia, there are also differences in the situation. The major difference comes from the leaders being elected compared to being despots.

Based on the interviews the Guardian conducted we can see that the youths are unemployed and marginalized. This is similar to what was going on within Tunisia and Egypt. High unemployment and lack things for the kids to do. It’s something of a structural issues. Which Cameron acknowledged yesterday in a speech. So some of the reasons are similar between the rioters in London and with the Arab spring.

However, since it is England asking for data from Twitter and BlackBerry, they are much more will to cooperate with the police. I’m not entirely sure this would have happened in any of the countries involved in the Arab Spring. Leverage over Twitter during the Arab Spring could have killed it. Do we pick and choose which riots we support? I think it’s clear that we do.

We just need to be aware of the precedence we are setting and that all countries around the world are going to emulate the response of the US and England in this riot. There’s no reason why China, Iran, North Korea, or any other country shouldn’t expect Twitter to comply with them if Twitter complies with England.

The actions that our governments take in this case could have long term implications in regards to internet freedom. It also will indicate if there are two different classes of countries when it comes to the allowable types of internet freedom.

I don’t condone what happened, but we need to really understand the repercussions of the actions in wake of these riots.

Pseudonymity and Anonymity II

Yesterday I gave an extensive overview of the debate that is ongoing between “Real name” supporters and “Pseudonym/Anonym” supporters. If you haven’t read it I suggest you check it out. There are quiet a few different groups of people discussing it, American and International.

Why do I think it’s a big deal though? I mentioned yesterday that I made a personal choice to use my real name instead of a pseudonym. This is partially because I’m really bad at coming up with them, but also because I try to speak with my real voice as much as possible. I’m also aware that this is could have some repercussions depending on what I try to do after I graduate. I haven’t also been the most supportive of the US government. At  one point when I was debating with a hardcore conservative he pointed this out to me as well.

The problem is that we don’t know who has our information. We lose control of it as soon as it’s put on the internet. I have no idea who has access to the conversation I’m talking about. I know that Facebook and the people involved in the conversation do, but I don’t know if that information got passed onto any sort of governmental body.

This is a huge change from what has happened in the past. We had control over who we gave our information to. It was easy because it had to be face to face or perhaps through a letter. Once that conversation was finished unless notes were taken or it was recorded most of the information would only be remembered only imperfectly by the people involved. This is not the case now. it can be stored and recalled perfectly through the internet and web records.

This permanence is dangerous, as the past will haunt people for decades to come instead of only a few years and only with their friends. However, that is not all. Forcing people to use their real names in all cases causes a chilling affect on activism as governments try to stamp down on it. Twitter will be a more popular communication tool for activists than Google + or facebook because of their pseudonym policies.

Regardless of if we like it or not, Facebook, Twitter, Google + and other social networking sites have become our public forums. We don’t have a town square to meet and discuss life. We don’t have the community unity that once used to pervade life so we use the tools that we have. However, all of these new meeting places are controlled by corporations that are required to give data to the US government and other governments as well. The ability to protect your identity from the government, other organizations and from people you don’t want to have find you is important. It allows people to be honest and investigate different parts of themselves or try to fight to bring down repressive regimes.

Pseudonyms are part of the internet’s social norms, a method to protect free speech and to protect yourself. They are very important and we need to fight to keep them. The US government should be seeking to protect our ability to have pseudonyms and not fighting against them. The State Department claims they support internet freedom. Supporting pseudonyms and the ability to be anonymous on the internet is the best way to do so.