April 24, 2010

Requires Google to be split up

Will prevent the illegal exploitation of market power.

The American consumer organization Consumer Watchdog this week sent a letter to the U.S. Justice Department, demanding that the Ministry create a broad antitrust lawsuit against Google. The organization believes that a split of Google into several separate companies would be a preventative action against Google to illegally exploit its market power.
google
In a press release write Consumer Watchdog that organization are very pleased with the Ministry of resistance in the Google Books case and the Federal Trade Commission's review of Google's acquisition of AdMob. Nevertheless, the group believes that it is time to actively add links on Google's broad ability to exploit both users and advertisers, instead of the current response-based approach.

- Such a legal matter may include sharing Google into several separate companies or to regulate it as a public institution, enter the group in the letter to the Ministry.

- Google exploit monopoly power over Internet search by controlling 70 percent of the U.S. market. For most Americans - indeed most people in the world - is Google the gateway to the Internet. The way the company at any time adjust its proprietary search algorithms can ensure the success of an enterprise or condemn it to lose, "the letter.
Consumer Watchdog said that Google will subsidize the company's other businesses using the monopoly-related prices that can sustain, through its dominance in search.

Involves, among other things, that the search service is separated from the company's advertising sales business. In addition, they imagine that Google and Buzz should be a separate unit. The same goes for YouTube and its corporate applications.
However, not proposing Consumer Watchdog what these individual companies will have as sources of income, since most of the Google offering of services designed just to sell more ads.
It is also proposed that regulations be designed so that they open Google's advertising platform so that other competitors can compete.

The entire letter is available here
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