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This is explained in quite a bit of detail in the judge's ruling: https://assets.bwbx.io/documents/users/iqjWHBFdfxIU/rZ1UlL.0yQbo/v0 https://assets.bwbx.io/doc
by eli 2y ago
This is explained in quite a bit of detail in the judge's ruling: https://assets.bwbx.io/documents/users/iqjWHBFdfxIU/rZ1UlL.0yQbo/v0 https://assets.bwbx.io/documents/users/iqjWHBFdfxIU/rZ1UlL.0...
Starting about page 197.
> Google understands there is no genuine competition for the defaults because it knows that its partners cannot afford to go elsewhere. Time and again, Google’s partners have concluded that it is financially infeasible to switch default GSEs or seek greater flexibility in search offerings because it would mean sacrificing the hundreds of millions, if not billions, of dollars that Google pays them as revenue share.
[...]
> That was the key takeaway from the testimony of Neeva’s founder and former Google Senior Vice President of Ads and Commerce, Dr. Ramaswamy. The court found him to be a particularly compelling witness. He put it best. When the court asked why Google pays billions in revenue share when it already has the best search engine, he answered that the payments “provide an incredibly strong incentive for the ecosystem to not do anything”; they “effectively make the ecosystem exceptionally resist[ant] to change”; and their “net effect . . . [is to] basically freeze the ecosystem in place[.]” Tr. at 3796:8–3798:22 (Ramaswamy). No one would ever describe a competitive marketplace in those terms. When the distribution agreements have created an ecosystem that has a “strong incentive” to do “nothing,” is “resist[ant] to change,” and is “basically [frozen] in place,” there is no genuine “competition for the contract” in search. It is illusory.
- w10-1 2y agoThe court is plain silly if it's concluding that multi-billion-dollar deals create resistance or diminishes incentives. If anything, it creates incentives by proving that another search engine could make billions from smartphone fees alone.
- eli 2y agoIt’s an exclusive deal that prevents anyone else from offering a similar deal. Of course it reduces competition. The only question is whether it also violates the monopoly law. I’d encourage you to read the decision, I just pulled two paragraphs from a pretty exhaustive document.
- j_maffe 2y agoI highly encourage you to read about monopolies and their mechanisms. Competitors can be incentivized with a monopoly's profits all they want, the amount of money it'd take to enter the space is unfeasible.
- ryeights 2y ago>another search engine could make billions from smartphone fees alone. I’m not following… the search engine would be the one paying the billions.
- Spivak 2y agoThey're saying that if Google is willing to pay so much to be the default that there's positive ROI that another search engine could tap given the up-front investment to buy the spot.
- callalex 2y agoThen what is Google paying others for?