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The Google Trap » Blog Archive » US-antitrust commission reviews Google-Yahoo deal US-antitrust commission reviews Google-Yahoo deal - Google, Schmidt, Yahoo, Federal, Commission, Varney, Trade, Varnie - The Google Trap

US-antitrust commission reviews Google-Yahoo deal

Even antitrust groups in the US finally became upset about the mega cooperation between Google and Yahoo. According to an article published in the New York Times the US department of justice launched a formal investigation regarding the advertising deal between the two companies. Experts had been asked to assess the Google-Yahoo advertising partnership for antitrust implications.

Not only Google- and Yahoo experts were being interviewed, but also Microsoft representatives. We will see what happens and if the colourful Google-logo and the charismatic Google CEO Eric Schmidt will blind the antitrust commissioners. Schmidt never seems to get tired of assuring how important the deal is for the Internet, for us users. I remember one of his statements when Microhoo was still a topic: this merger endangers the freedom of the web. Have the Romans gone berserk? Sorry: the Mountain Viewers?

It is perfectly logical: if the number one merges with the number two on the market, a highly questionable dominance will develop. Let me repeat one of my comparisons again: what would the world be like, if nine out of ten cars were VW-Golfs? Volkswagen would definitely be more than pleased. Or if you could only choose among one milk and one yoghurt at a supermarket… if you only had “Müllermilch” on the shelves?

Voices critical of Google can now also be heard in the USA. “Until now, Google was always careful not to show predatory behaviour,” says Christine A. Varnie from the law firm Hogan & Hartson. Varney used to be a member of the (US) Federal Trade Commission. “But a cooperation such as this is completely anticompetitive.”

I am always bemused but also worried about Google representatives that say, “We are certain that our agreements are fair and competitive.” How blind can one be? Until September, a decision will be made…

I ask myself, when the EU will finally inspect Google’s market-dominance and will realize how dangerous this information monopoly is to society? When a single company dominates more than 90% of the web searches and ads, the term “monopoly” can easily be applied. And I wrote this on the cover page of my book: “The market domination by Google is dangerous for society. It allows for political censorship (as it is practiced in China), simplifies spying on user privacy and does not allow criticism or competition.” And the only information we get is what the search engine defines as “Google-correct”…

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