3 ms·
The problem I have with Google isn't that their products deliver value or not, it's that their products are obviously not free, and the cost is opaque to the co
by chrischen 5y ago
The problem I have with Google isn't that their products deliver value or not, it's that their products are obviously not free, and the cost is opaque to the consumer. But I do know the cost must be extremely high because they are extremely profitable and that profit must be coming from some place.
The business model of most Google products rely on their costs to be completely detached from the consumer. And this is extremely insidious and anti-competitive because a consumer has no idea what businesses are paying Google, the business has no idea what the consumer is getting in exchange, and the information balance is totally lop-sided (Google has it all).
The cost I'm talking about isn't just privacy (which is not the focal point here at all). The cost is that they exploit our data to create a one-sided marketplace where they can extract the highest value from merchants and consumers. This creates maximum value for Google and screws over competitors, consumers, and businesses. Even if you don't click on any Google ads, you are still paying for them because many business are forced to use them to survive given that Google has a massive share of the advertising business. The businesses you interact with simply mark up all costs, and you ultimately end up paying for them. It's anti-competitive because this detachment of the cost-benefit feedback loop means consumers are no longer making any conscious choice of Google product vs competitor product, because they think the Google product is free!
FB business model happens to be much the same way, except rather than free product to get your attention they just outright manipulate you for your attention which is more obviously anti-consumer.
- JoshCole 5y agoThe expected value of an ad conversion for a user is going to be positive or they wouldn’t have converted. Therefore the cost is not high, it is negative. So you don’t know the cost when you claim to know it. Being the product doesn’t mean being the victim; I don’t pay for my friendships. Google trades getting better at helping people for helping them and uses an auction system to decide what help slots get filled with offers of help.