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Antitrust investigation on Google; the plot thickens.

Created by Falcon on March 15, 2012, 6:32 p.m.
  • http://online.wsj.com/article/SB10001424053111904823804576500544082214566.html

    U.S. antitrust regulators are focusing their investigation of Google Inc. on key areas of its business, including its Android mobile-phone software and Web-search related services, people familiar with the probe say.
    Six weeks after serving Google with broad subpoenas, Federal Trade Commission lawyers, in conjunction with several state attorneys general, have been asking whether Google prevents smartphone manufacturers that use its Android operating system from using competitors' services, these people said.
    They also have inquired whether Google grants preferential placement on its website to its own products, such as Google's "Places" business listings, its "Shopping results" and Google Finance services above most other results.
    And they're looking into allegations that Google unfairly takes information collected by rivals, such as reviews of local businesses, to use on its own specialized site and then demotes the rivals' services in its search results, the people said.

    I'm shocked that Tested hasn't done, well... ANY coverage of this whatsoever. I went back to look at This is Only a Test and they talked about it back in June for less than five minutes. There have also been no recent article(s). I realize that an antitrust investigation moves about as fast as an iceberg, but the fact that one is going on is a big deal, right?

    But how will this effect us, the end consumers? (Other than search results being changed around.)

    http://www.winsupersite.com/blog/supersite-blog-39/mobile-computing-devices/android-heading-fall-140173

    First, Google gives it away. It does this because it can and because its huge expenses related to developing Android can be paid back implicitly through more people using search and its other ad-supported services on the devices. But Google is not paying for the intellectual property of others that it's using in Android; and it is infringing on other companies' patented technologies.

    Second, Android has attracted a much wider than usual licensee base from hardware makers because it's free. So there are a tremendous number of Android devices, all going out through every single wireless carrier. These hardware makers are always trying to one-up the others, so new devices come out all the time and there is a hyper-competitive market just for Android phones. This creates a further unrealistic "capabilities vs. price" situation in just that part of the market.

    Because there are so many Android devices, and because one of them is usually the single best phone at any given wireless carrier, more people buy these kinds of phones. ...This is what the employees are pushing to customers. But the entire situation is all artificially propped up for the reasons stated above. I do not believe this can continue for much longer. The crazy over-commoditization of the Android market is a death spiral. And yes, that sounds like a nutso thing to say in this age where Android dominates the smart phone landscape. I know. I still believe it to be true.

    Even if there isn't a lawsuit from the investigations into Google's products (which I doubt, how are they not monopolizing?) they have already had to start ponying up for patent rights money stuffs when it comes to Android. That money is only going to add up to a bigger and bigger number. Google might have to then charge manufacturers a license fee for Android. Therefore, companies won't be crapping out a new Android device every other month.

  • If Google has been violating patents since Adroid's creation, why hasn't this issue arisen sooner? Does it just take this long for companies to pounce on each other?


  • @SpikeSpiegel said:

    If Google has been violating patents since Adroid's creation, why hasn't this issue arisen sooner? Does it just take this long for companies to pounce on each other?

    Well if they do it sooner with 10k units the payments will be less, there's no competition to worry about, easier to fix/recall.
     
    Wait for a few million units... then pounce, there's little they can do.