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Preventing a company from offering a free product in no way serves the consumer. In a general context, a company practicing 'predatory pricing' may do so to dr

Preventing a company from offering a free product in no way serves the consumer. In a general context, a company practicing 'predatory pricing' may do so to drive the other competitors out of business. Once that happens, it's free to raise prices to monopolistic levels which would end up hurting consumers eventually.

deleted 15y ago
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dstein 15y ago
Google almost certainly does not intend to suddenly start charging for Android once iOS and Windows7 are out of the picture. More likely their intention is to keep it free, but with additional "conditions" such as Google search being the only way to find information. Mandated use of Gmail, Google Docs, Calendar, Contacts. Heavily integrated Google Plus social features like chat, blog, and photo sharing. Google won't need to charge for Android because there will not be a way to avoid a Google tentacles if you use their OS. Google is trying to burn down the ecosystems of it's competitors with free products and make money by being the gatekeeper of your every activity with a smartphone.
smokeyj 15y ago
> Once that happens, it's free to raise prices to monopolistic levels These fears are not based on evidence. When has someone released a free product only until they wiped out all the competition, proceeding to jack up prices? I mean, once they jack up the prices there is an established market ripe to pick customers from. Furthermore, the temporary profits, if any, would only be temporary and would be a greater cost to their corporate image.
- Elepsis 15y ago
  Jacking up prices isn't the only potentially-negative consequence of driving its competitors out of business, nor is it a requirement to be considered anti-competitive. The history of Internet Explorer is an interesting illustration of both.
- mung 15y ago
  Adobe InDesign hiked in price once it was clear that Quark was no longer a real threat. That said, InDesign was a better product almost right from the start. But just sayin'
gaulinmp 15y ago
Thank you for raising this point, because it's only in this case that lower (free) prices are anti-competitive. If the company raises prices to _above_ fair market value after their artificially low prices have driven out competition then the DOJ comes after them. If they leave the product free forever, that's not a problem because it's good for the consumer. So my question to the Google nay-sayers is do you expect Google to raise prices on Android once they have forced MS and Apple out of the smartphone market? Or do they just have a superior product model in which they can offer free software and make money on ads while their competition must charge for the software. I personally don't think they will ever raise Android prices so it's just good competition.
danmaz74 15y ago
Don't forget that Android is open source (except version 3, but we're talking about phones now). This means that if Google decided to charge for it, they could only do so on new versions, and anybody could start from an old one, fork it and bring it further. This is completely different from free non-open-source software, where it could be actually possible to raise prices once the competition is wiped out.

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dstein 15y ago

Google almost certainly does not intend to suddenly start charging for Android once iOS and Windows7 are out of the picture. More likely their intention is to keep it free, but with additional "conditions" such as Google search being the only way to find information. Mandated use of Gmail, Google Docs, Calendar, Contacts. Heavily integrated Google Plus social features like chat, blog, and photo sharing. Google won't need to charge for Android because there will not be a way to avoid a Google tentacles if you use their OS. Google is trying to burn down the ecosystems of it's competitors with free products and make money by being the gatekeeper of your every activity with a smartphone.

smokeyj 15y ago

> Once that happens, it's free to raise prices to monopolistic levels These fears are not based on evidence. When has someone released a free product only until they wiped out all the competition, proceeding to jack up prices? I mean, once they jack up the prices there is an established market ripe to pick customers from. Furthermore, the temporary profits, if any, would only be temporary and would be a greater cost to their corporate image.

Elepsis 15y ago
Jacking up prices isn't the only potentially-negative consequence of driving its competitors out of business, nor is it a requirement to be considered anti-competitive. The history of Internet Explorer is an interesting illustration of both.
mung 15y ago
Adobe InDesign hiked in price once it was clear that Quark was no longer a real threat. That said, InDesign was a better product almost right from the start. But just sayin'

gaulinmp 15y ago

Thank you for raising this point, because it's only in this case that lower (free) prices are anti-competitive. If the company raises prices to _above_ fair market value after their artificially low prices have driven out competition then the DOJ comes after them. If they leave the product free forever, that's not a problem because it's good for the consumer. So my question to the Google nay-sayers is do you expect Google to raise prices on Android once they have forced MS and Apple out of the smartphone market? Or do they just have a superior product model in which they can offer free software and make money on ads while their competition must charge for the software. I personally don't think they will ever raise Android prices so it's just good competition.

danmaz74 15y ago

Don't forget that Android is open source (except version 3, but we're talking about phones now). This means that if Google decided to charge for it, they could only do so on new versions, and anybody could start from an old one, fork it and bring it further. This is completely different from free non-open-source software, where it could be actually possible to raise prices once the competition is wiped out.