4 ms·

In what way is YouTube an illegal monopoly?

by edanm 2y ago

AmericanChopper 2y ago
Alphabet has engaged in many anti-competitive business practices to promote YouTube's monopoly. To name a few, Alphabet is currently being sued by the DoJ for illegally monopolising digital advertising technology. That technology, which directly integrates with youtube (and which you or I could not integrate with our own competing youtube-like product), is one of the key reasons that youtube has become as successful as it is. https://www.justice.gov/opa/pr/justice-department-sues-google-monopolizing-digital-advertising-technologies https://www.justice.gov/opa/pr/justice-department-sues-googl... They have also recently lost a lawsuit regarding the legality of their search monopoly, which likely also contributed to the success of youtube. https://www.theverge.com/2024/8/5/24155520/judge-rules-on-us-doj-v-google-antitrust-search-suit https://www.theverge.com/2024/8/5/24155520/judge-rules-on-us... The way they leverage the OHA to ensure YouTube is shipped with every Android phone is also highly anti-competitive, and isn't too different from the IE case against Microsoft. https://arstechnica.com/gadgets/2018/07/googles-iron-grip-on-android-controlling-open-source-by-any-means-necessary/3/ https://arstechnica.com/gadgets/2018/07/googles-iron-grip-on... The same concern exists in the smart TV market. While it's not illegal (as far as I know), the practice of burning through billions of dollars until your competitors are gone and you have an unassailable market dominance is also certainly anti-competitive, and that really has been one of the other key ingredients in youtube's success. None of these are management practices that I would consider worthy of congratulating.
- tourmalinetaco 2y ago
  The irony is that despite all of this monopolization and lying to advertisers about the reach of their ads YouTube is still not profitable.
  - AmericanChopper 2y ago
    Alphabet don’t publish YouTube’s profit margins, so I don’t think you know that to be a fact. I’d personally be rather surprised if it wasn’t profitable though.
    - johnnyanmac 2y ago
      I know this is horrible logic here but: Alphabet not wanting to publish the margins of what is otherwise their top3 best known product says a lot in and of itself. Either that it wouldn't be a pretty image (even if it is in fact commodifying other profitable sectors), or it'd reveal some skeletons (which are being revealed in real time, but it slows down the reveal).
supertrope 2y ago
Leveraging YouTube's market share to hobble Windows Phone. https://www.pcmag.com/news/google-orders-microsoft-to-remove-windows-phone-youtube-app https://www.pcmag.com/news/google-orders-microsoft-to-remove... Carriage dispute with Roku. https://www.cnbc.com/2021/12/08/roku-reaches-agreement-with-google-to-keep-youtube.html https://www.cnbc.com/2021/12/08/roku-reaches-agreement-with-...

In what way is YouTube an illegal monopoly?

by edanm 2y ago

In what way is YouTube an illegal monopoly?

Alphabet has engaged in many anti-competitive business practices to promote YouTube's monopoly. To name a few, Alphabet is currently being sued by the DoJ for illegally monopolising digital advertising technology. That technology, which directly integrates with youtube (and which you or I could not integrate with our own competing youtube-like product), is one of the key reasons that youtube has become as successful as it is. https://www.justice.gov/opa/pr/justice-department-sues-google-monopolizing-digital-advertising-technologies https://www.justice.gov/opa/pr/justice-department-sues-googl... They have also recently lost a lawsuit regarding the legality of their search monopoly, which likely also contributed to the success of youtube. https://www.theverge.com/2024/8/5/24155520/judge-rules-on-us-doj-v-google-antitrust-search-suit https://www.theverge.com/2024/8/5/24155520/judge-rules-on-us... The way they leverage the OHA to ensure YouTube is shipped with every Android phone is also highly anti-competitive, and isn't too different from the IE case against Microsoft. https://arstechnica.com/gadgets/2018/07/googles-iron-grip-on-android-controlling-open-source-by-any-means-necessary/3/ https://arstechnica.com/gadgets/2018/07/googles-iron-grip-on... The same concern exists in the smart TV market. While it's not illegal (as far as I know), the practice of burning through billions of dollars until your competitors are gone and you have an unassailable market dominance is also certainly anti-competitive, and that really has been one of the other key ingredients in youtube's success. None of these are management practices that I would consider worthy of congratulating.

tourmalinetaco 2y ago
The irony is that despite all of this monopolization and lying to advertisers about the reach of their ads YouTube is still not profitable.
- AmericanChopper 2y ago
  Alphabet don’t publish YouTube’s profit margins, so I don’t think you know that to be a fact. I’d personally be rather surprised if it wasn’t profitable though.
  - johnnyanmac 2y ago
    I know this is horrible logic here but: Alphabet not wanting to publish the margins of what is otherwise their top3 best known product says a lot in and of itself. Either that it wouldn't be a pretty image (even if it is in fact commodifying other profitable sectors), or it'd reveal some skeletons (which are being revealed in real time, but it slows down the reveal).

supertrope 2y ago

Leveraging YouTube's market share to hobble Windows Phone. https://www.pcmag.com/news/google-orders-microsoft-to-remove-windows-phone-youtube-app https://www.pcmag.com/news/google-orders-microsoft-to-remove... Carriage dispute with Roku. https://www.cnbc.com/2021/12/08/roku-reaches-agreement-with-google-to-keep-youtube.html https://www.cnbc.com/2021/12/08/roku-reaches-agreement-with-...