[HN Gopher] U.S. states file updated antitrust complaint against...
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       U.S. states file updated antitrust complaint against Google
        
       Author : mancerayder
       Score  : 390 points
       Date   : 2021-11-14 00:15 UTC (22 hours ago)
        
 (HTM) web link (www.reuters.com)
 (TXT) w3m dump (www.reuters.com)
        
       | mabbo wrote:
       | As more data comes out about Google, Apple, Amazon, one simple
       | underlying thing becomes clear: a single company cannot be
       | trusted to operate a marketplace _while also being a
       | participant_.
       | 
       | Apple's App Store insider knowledge lets them discover popular
       | apps, then boot them off the platform when they decide to
       | compete. Amazon sees what products are successful and profitable,
       | then makes knock-offs which they promote over the originals. And
       | now, reading into this, Google is manipulating their ad markets
       | using inside knowledge.
       | 
       | It's all very profitable.
       | 
       | If we cannot trust large companies to _not_ abuse this kind of
       | power, then they should be prevented by law from playing both
       | sides. This may result in the breakup of some very large
       | companies, akin to the 1934 Air Mail Act that broke up Boeing.
        
         | monkeydust wrote:
         | As someone who's been involved in developing financial
         | exchanges this concept is bizarre. There is regulation and
         | participant agreements that would prevent NYSE for example from
         | running its own market making firm and abusing it's position as
         | exchange to benefit over other participants for profit, if it
         | did this others would leave and the exchange would eventually
         | die.
        
           | oblio wrote:
           | Small and medium vendors can't abandon Amazon. And with
           | enough of them you create the largest marketplace on the
           | planet.
        
           | thow-01187 wrote:
           | The notion of: "it's a little bit like X, a little bit like Y
           | - but it's neither X nor Y, therefore we it's a wild-west
           | anarchy without any rules or regulations" - this is such a
           | glaring loophole in our legal system that it must be
           | intentional. Derivatives bubble, ad-tech, gig-work, crypto-
           | mania, AirBnB, and many other socially-parasitic enterprises
           | exist solely because our legal code is missing "try-catch-
           | finally" clauses
        
             | Nasrudith wrote:
             | It is intentional - the legal system defaults to absolute
             | freedom in absense of laws. Besides have you seen how
             | goddamn inept just rulemaking is when done based upon the
             | old standards which have nothing to do with the advantages
             | and limitations of the new medium?
             | 
             | Look at attempts to prelegislate things which do not really
             | exist yet and you get utter embarrassments of law at best
             | and at worst hamstring your nation by laws which assume
             | that a TI graphing calculator has the potential to go rogue
             | and start deliberately killing people.
        
             | irq-1 wrote:
             | They didn't have any trouble during the drug war when new
             | variations were made because they weren't illegal -- the
             | government made all variants illegal and continued on.
             | That's what they do when they care. When they don't care
             | they pretend there's nothing they can do.
             | 
             | https://en.wikipedia.org/wiki/Federal_Analogue_Act
             | 
             | > ...any chemical "substantially similar" to a controlled
             | substance listed in Schedule I or II to be treated as if it
             | were listed in Schedule I
        
           | btown wrote:
           | Not only is adtech virtually unregulated compared to
           | financial exchanges, it's also immensely more fragmented, and
           | ad networks like Google AdSense are tremendously sticky once
           | they've been exclusively integrated on the long tail of
           | millions of publisher sites. See
           | https://lumapartners.com/content/lumascapes/display-ad-
           | tech-... for all the parties involved. There's a lot less
           | transparency for all parties involved (see the work of , and
           | arguably some version of an SEC for adtech is long overdue.
           | If ad exchanges were operated with the transparency of
           | broker-dealers, initiatives like https://checkmyads.org/
           | wouldn't need to exist.
        
         | Bellamy wrote:
         | Another example: FDA is funded by pharma companies.
        
           | Nasrudith wrote:
           | No wonder people think businesses run governments when they
           | use bad metrics of control like that. The earth itself
           | controls oil companies and is therefore responsible for
           | global warming by that logic!
        
         | sillysaurusx wrote:
         | The underlying assumption is that this behavior is bad.
         | 
         | Why is it bad? Especially bad enough to be regulated by a new
         | law?
        
           | seanhunter wrote:
           | For one thing it's bad because of information asymmetry
           | between the market owner and other participants. The market
           | owner knows all the information but each other participant
           | only knows a fraction of the information. If the information
           | was all completely public it would be less bad probably. This
           | is why in financial markets "dark pools" (private alternative
           | execution venues) ended up getting new regulation from the
           | SEC to prevent abuse
           | https://www.cfainstitute.org/en/advocacy/issues/dark-
           | pools#s...
           | 
           | Antitrust law doesn't come into effect just because something
           | is bad in the abstract sense though, it comes into effect
           | when there is harm to the consumer as a result (that's my
           | understanding anyway). The harm here is due to the market
           | distortion primarily (I would think).
        
           | sjtindell wrote:
           | It hinders fair competition, which hurts consumers. It
           | misallocates dollars to these gatekeepers.
        
           | tonightstoast wrote:
           | The current chair of the FTC has an interesting paper on this
           | question (written before she became chair).
           | 
           | https://www.yalelawjournal.org/pdf/e.710.Khan.805_zuvfyyeh.p.
           | ..
        
           | skohan wrote:
           | Are you kidding? You don't think this kind of behavior
           | disincentivizes innovation?
           | 
           | And it's not exactly new. Common carrier regulations have
           | been a thing forever.
        
           | tjpnz wrote:
           | Because this kind of behaviour results in monopolies which
           | stifle innovation and invariably harm people.
        
           | II2II wrote:
           | It is a conflict of interest that allows them to gain a
           | disproportionate amount of control over the market. It causes
           | direct harm to competitors, through both the access to
           | confidential sales data and access to the market. It also
           | causes harm to consumers (at least in cases of locked down
           | platforms like iOS) since they no longer have access to
           | competitor's products. In short, it is no longer a free
           | market.
        
         | snarfy wrote:
         | I can open a lemonade stand, I just can't sell my own lemonade,
         | is that corrrect?
        
           | Sayrus wrote:
           | Now that's one hell of a straw man. Do you also plan on
           | controlling this stand, allowing others to sell on your stand
           | while watching every single transaction (and maybe the recipe
           | so that the analogy is complete?) and while also having the
           | power to remove them from your stand?
           | 
           | Because if you are only talking about opening a stand and
           | selling your lemonade, then you don't have the same foothold
           | as Apple, Google or Amazon.
        
             | snarfy wrote:
             | > same foothold
             | 
             | Yes, this is the problem. Participating in the market they
             | create is not. If that were true every grocery store that
             | has a bakery, deli, or meat counter is a problem.
             | 
             | They are too big. Monopolistic forces are the problem.
        
         | jdavis703 wrote:
         | What apps does Apple sell in the App Store that used to be sold
         | by third parties, but were then banned?
        
           | oblio wrote:
           | F.lux. The examples are countless.
           | 
           | Well, not sold in this case, but given away for free to
           | increase the moat, then banned.
        
           | pfortuny wrote:
           | Look at how the Notes app has evolved... There are apps for
           | scanning documents, for example which are now superseded.
           | 
           | The Music app which now has a streaming service...
        
             | jdavis703 wrote:
             | Spotify is still in the App Store, and iTunes/Apple Music
             | existed long before Spotify.
        
               | mthoms wrote:
               | Spotify launched in 2006. Apple Music: 2015.
               | 
               | iTunes is not a subscription service like Spotify.
        
         | ngngngng wrote:
         | Does this only go for internet companies? Or do you think it
         | applies to Walmart selling its own Equate brand of everything
         | or Costco selling its own Kirkland brand of everything?
        
           | sitkack wrote:
           | Trader Joe's pulls the same thing with the house brand. House
           | Brand, undercoat, whatevers. If you want Capitalism to work,
           | then everything need to be a market. For markets to be
           | efficient we need protocols and interfaces. For this to work
           | we need to disambiguate to the root, the post office should
           | probably deliver milk and potatoes.
        
           | [deleted]
        
           | laurent92 wrote:
           | There is urgence in banning Walmart from selling home brands
           | next to competitors, because it has hampered the discussion
           | on the GAFA monopolies every time it was asked! For its own
           | sake, _this_ is causing harm to the customer...
        
           | riazrizvi wrote:
           | If 92.47% of all stores in the USA were only Walmart then
           | yes, there would be a national interest in determining how
           | grocery store competition had been destroyed/denied and we
           | would want to fix it.
           | 
           | In such a situation you would see a degradation of store
           | product quality vs price. It might not be so clear with
           | internet search because Google's ascendence was coincident
           | with innovation that it has hoovered up. But once you see
           | competition restored, with things like the return of a Search
           | API, or of more transparent ranking metrics, or of
           | customizable ranking algorithms then you will begin to see
           | what you are missing.
        
             | jefftk wrote:
             | Where are you getting 92.47%? Amazon's share of online
             | shopping is well under that, no?
        
               | charrondev wrote:
               | I'm guessing that number is in reference to googles
               | dominance of the search market?
               | 
               | I'm assuming they are less than that with regards to the
               | advertisement market (I'm not super familiar with the
               | space, but as I understand Facebook is a huge player
               | there as well).
        
               | bananabreakfast wrote:
               | What market though? There is no search market. It is a
               | service given away for free. There is no such thing as a
               | monopoly on something that does not cost anything.
        
               | kaibee wrote:
               | > There is no such thing as a monopoly on something that
               | does not cost anything.
               | 
               | This is the wrong way to think about it. How much would
               | _Google_ be willing to pay to maintain that position?
               | Well, Mozilla's primary source of revenue, is afaik, from
               | having Google as the default search engine, so at least
               | that much, for whatever percent of the browser market-
               | share.
        
               | effingwewt wrote:
               | You're kidding, right? the first damn near full page of
               | google search is nothing but _ads_ which they make a
               | killing off of.
               | 
               | If search wasn't profitable then ads in search and SEO
               | wouldn't exist.
        
               | freeflight wrote:
               | Companies like Google and Facebook have pretty much
               | cornered the market of the attention economy.
               | 
               | The vast majority of web users have their eyes and
               | attention directly guided by one of these [0]. If they
               | decide you do not exist, then you will effectively cease
               | existing for billions of people on the web because they
               | do not know a web outside of Google/YouTube or the
               | Facebook ecosystem.
               | 
               | [0] https://staltz.com/the-web-began-dying-in-2014-heres-
               | how.htm...
        
           | bryanrasmussen wrote:
           | As others have pointed out there are differences between the
           | big internet companies and the physical chain stores however
           | I think for the purposes of drafting a law, unless it applies
           | only to internet commerce, it might be reasonable to write it
           | as applying to any store above a certain size as well (I
           | guess we want Ma to be able to sell her homemade preserves at
           | Ma and Pa's country store)
        
           | the_pwner224 wrote:
           | There are a few differences.
           | 
           | The big tech companies have a much higher market share. For
           | phone app makers, the App Store is the only point of access
           | to the majority of affluent Americans; Google controls access
           | to the rest of the 1st world population (sideloading is
           | possible on Android but 99.9% of normies won't use your app
           | if it's not on the store). Amazon does have competitors and
           | you can also run your own e-shop, but they are the
           | gatekeepers for a large portion of the online sales market -
           | getting kicked off of Amazon is going to hurt bad for any
           | online retailer. Of course getting kicked out of Walmart is
           | also bad, but there are lots of competitors that lots of
           | people use (grocery stores which have regional chains as well
           | as smaller local chains, Target, Costco, Amazon, etc.).
           | 
           | Which leads into the second point - Apple has a long history
           | of integrating cool features/apps into their OS and then
           | kicking out the original creator from the app store. This
           | destroys the creator / original company and basically
           | transfers the idea's profits to Apple. Retail stores and
           | Amazon do make knockoffs, but generally the original product
           | is still sold alongside it. In many cases the branded product
           | is superior to the generic product and many people will pay
           | extra for it; in many other cases the brand also supplies the
           | generic label product so that's beneficial for both parties.
        
             | heavyset_go wrote:
             | > _The big tech companies have a much higher market share.
             | For phone app makers, the App Store is the only point of
             | access to the majority of affluent Americans; Google
             | controls access to the rest of the 1st world population
             | (sideloading is possible on Android but 99.9% of normies
             | won 't use your app if it's not on the store)._
             | 
             | To use real figures, Apple has 60% of the mobile operating
             | system market in the US[1], and Google has 40%. Apple's App
             | Store has 100% more revenue than Google's Play Store[2],
             | and the two are responsible for over 99% of all mobile app
             | sales in the US. Both Google and Apple dominate the mobile
             | app payment market in the US, as well, since they both ban
             | all other forms of app payments on their app stores.
             | 
             | [1] https://www.pcmag.com/news/ios-more-popular-in-japan-
             | and-us-...
             | 
             | [2] https://www.businessofapps.com/data/app-revenues/
        
               | thow-01187 wrote:
               | It would be interesting to see the revenue split between
               | App Store and Play Store in the US. Since iOS skews
               | towards more affluent users, and more affluent users are
               | way more likely to spend, it wouldn't be surprising if
               | App store gets 90%+ of the US market in terms of revenue
               | - finally dispelling the "it's not a monopoly" argument
        
           | kymaz wrote:
           | The effects of costco and walmart's behavior is largely
           | contained within their own retail space. Amazon.com has no
           | such constraint.
           | 
           | I think my answer is yesno. It isn't about the action of
           | making and selling the competing products, but about how the
           | internet and FAANG scale changes the customer-business
           | dynamics. Consider that when you browse wares in a physical
           | store like Costco or Walmart, the selection is constrained to
           | what can fit within a building, thus the absolute worthless
           | garbage junk and knockoffs will be culled to make space for
           | less return-prone items ( At Costco, I don't see 5 pages or
           | aisles of identical products listed under different brands
           | that are mechanically indistinguishable from 'kirkland
           | signature' products). Costco also seems to care about
           | counterfeits and whether or not something they sold was found
           | to be bad (this has happened to me, a food item at costco was
           | found to be the source of a few food poisoning cases and was
           | traced back to a single item at costco, and costo went around
           | calling everyone who had that batch on their purchase history
           | to let them know). I've wound up with counterfeit pieces of
           | junk off Amazon that I'm not going to go through the effort
           | of refunding/returning/complaining about, so it's all
           | slippage that AMZN gets away with. Returns and replacements
           | are so fast at brick and mortar stores 5 miles away from
           | home!
        
           | 2OEH8eoCRo0 wrote:
           | In your analogy you name two large brick-and-mortar
           | retailers. Allow me to posit my own analogy: If Amazon is the
           | Walmart of the web then who is the Costco? Who is the Target?
           | There isn't any.
           | 
           | Retailers stick their neck out to put an item on the shelf
           | because space is limited. The product is made. It's on the
           | shelf. If it doesn't sell then someone loses money. If Equate
           | brand sucks I can choose an alternative. If everything on the
           | shelf sucks I can go to another store.
        
             | endisneigh wrote:
             | Costco, Target and Walmart all have their own online
             | presence. Your entire argument makes no sense.
        
               | foerbert wrote:
               | They were obviously just using an analogy with real names
               | to say Amazon does not have a similar-size competitor or
               | three.
        
               | endisneigh wrote:
               | Walmart is a similar sized competitor, though. Depending
               | on how you break it down, eBay is as well. The analogy
               | makes no sense. Walmart is a competitor, Aliexpress,
               | Flipkart, etc.
        
               | 2OEH8eoCRo0 wrote:
               | What percentage of online revenue does Walmart make? How
               | much does Amazon make?
        
           | jimmont wrote:
           | the difference is in the measure of fair competition; anyone
           | can compete, it simply can't be unfair; these tech companies
           | are competing unfairly and to the extent it's not only
           | obvious to participants, it's obvious to government. One
           | doesn't typically build a case without supporting evidence as
           | would help generally in situations like this.
        
           | notatoad wrote:
           | yes, in a scenario where wal-mart or costco is acting as
           | _marketplace_ rather than seller (i.e. their online stores).
           | 
           | when you see brand-name products on a shelf at wal-mart
           | beside their own-brand, it's because wal-mart has purchased
           | that product and is re-selling it. wal-mart has taken the
           | risk of buying the stock in the first place. brands still
           | have a chance to succeed.
           | 
           | when a brand acts as a marketplace, they aren't taking on the
           | risk. they're selling shelf space, not buying things to put
           | on the shelves. when they participate in the marketplace as
           | well as operating it, they are competing with their own
           | customers. that's the behaviour that's essentially a recipe
           | to destroy competition.
        
             | toast0 wrote:
             | > when you see brand-name products on a shelf at wal-mart
             | beside their own-brand, it's because wal-mart has purchased
             | that product and is re-selling it.
             | 
             | Goods on the shelf at stores in general are a mix of items
             | on consignment, the vendor provided the goods and the
             | vendor will be paid only if or when the goods sell; goods
             | that were purchased on net-30 or net-N terms where the
             | goods are delivered but not paid for until 30 (or N) days
             | later; and also some goods that were purchased and paid for
             | before delivery to the store (or store warehouse). Of
             | course, even when the goods aren't on consignment, larger
             | stores often negotiate favorable terms for unsold goods;
             | typically the vendor must refund the store as well as pay
             | for return shipping or disposal. A large amount of risk
             | still falls to the vendor.
             | 
             | Anyway, store brands are fine, IMHO, but there's two things
             | Amazon does that weird me out: a) in some categories they
             | apparently have several store brands and it's not always
             | clear it's an amazon brand, whereas Costco uses a single
             | brand and most other stores use just a couple; b) there
             | have been reports that Amazon will request supplier
             | information from merchants of products that are selling
             | well, and then Amazon goes to those suppliers and
             | negotiates bulk purchases; it seems to me, that's making
             | your merchants do all the work to discover items of
             | interest and where to get them made and then Amazon swoops
             | in and takes over.
        
           | rcdwealth wrote:
           | Difference is that neither Wallmart, Equate, Costco are
           | marketplaces for third parties.
        
           | amelius wrote:
           | Do you have an argument against that?
        
           | hnxs wrote:
           | Can you explain how Costco is relevant here when they make
           | most of their money off membership fees and not sales?
        
             | klipt wrote:
             | Would you say the same about Amazon promoting its own
             | brand, if Amazon made more money off Prime than sales?
        
               | cgriswald wrote:
               | I'd say in the case of Amazon, store brands are missing
               | the point. They can let sellers take all the risk of
               | determining what the market will support, while profiting
               | whether the seller is successful or not. If successful,
               | Amazon can reach its own deal with the manufacturer and
               | compete _with the very same branded product_ , possibly
               | at a lower price, without having to pay into the
               | marketplace, and with the capability of manipulating the
               | search results.
        
         | bothandeach wrote:
         | Yes but. It's your country, you let them do these things. You
         | set up your country to let them do these things. So no real
         | reason to complain.
        
           | acdha wrote:
           | Complaining is how problems get fixed. If we took your advice
           | we'd still be living in a country where voting was restricted
           | to white male land owners and most of us would be dreaming
           | about rate reductions at the company store.
        
           | makeitdouble wrote:
           | For real, do we have any more influence in this ?
           | 
           | Looking at what's happening now, Apple and Google are not
           | under scrutiny because of our collective petitioning or
           | votes, it's solely because of competitors with deep enough
           | pockets to duck it in court.
           | 
           | As a proof of that, there's no one to fight Facebook so not
           | much effectively changes on that front, despite all the
           | outcry and editorials thrown at them.
        
         | AmericanChopper wrote:
         | Anybody can figure out what Apps are popular, or are well liked
         | by their users. Any 3rd party could operate the Apple App
         | Store, and Apple (or anybody else in the world) would still
         | know what apps were popular on it, and Apple would still be
         | able to implement them as features/apps for their own operating
         | systems. To resolve the conflict you're describing, an
         | operating system vendor would have to be prohibited from
         | distributing software.
        
         | emkoemko wrote:
         | imagine your Netflix and have to pay Apple massive % to be on
         | their devices... then comes Apple with its own service and they
         | can charge less because they don't charge them self's the %
         | giving them very anti competitive advantage.
        
           | charcircuit wrote:
           | No, it would be a competitive thing. In chess capturing your
           | opponents pieces to weaken them is a valid strategy you will
           | see in any tournament. Capturing Netflix's marketshare by
           | offering a cheaper alternative is competitive. Putting your
           | enemy in disadvantaged positions is just part of the game.
        
             | fauigerzigerk wrote:
             | I don't understand how your analogy is even remotely
             | relevant. In chess, both sides can make the exact same
             | moves. Neither side can change the rules. Neither side can
             | impose any extra costs on the other side in an asymmetric
             | way. It's a classic example of a level playing field, and
             | it's the exact opposite of the asymmetric roles that Apple
             | and Netflix play on the iOS platform.
             | 
             | The only way in which your analogy could possibly apply is
             | if you're saying Netflix is free to create its own mobile
             | OS ecosystem where they can impose asymmetric rules and
             | taxes on Apple TV. But it's neither possible nor desirable
             | for every app maker to create their own OS and perhaps even
             | their own hardware.
             | 
             | The definition of "competitive" you seem to be using here
             | is not useful.
        
               | charcircuit wrote:
               | >The only way in which your analogy could possibly apply
               | is if you're saying Netflix is free to create its own
               | mobile OS ecosystem where they can impose asymmetric
               | rules and taxes on Apple TV
               | 
               | That is an option for Netflix. If they made their own
               | platform they could offer a more competitive price.
               | 
               | Apple was created in 1996. Netflix was made in 1997.
               | Maybe a good strategy of having a dominant streaming
               | platform in 202x would have been to launch a mobile
               | platform. Netflix had the same chance as Apple to take
               | that path, but they didn't. Apple can now capitalize on
               | good moves that it made in the past. In chess you can't
               | just recognize that you are in a bad position and then
               | ask a tournament organizer if you can be reset into an
               | equal position again. Either you continue playing that
               | bad position, or you resign.
               | 
               | >But it's neither possible nor desirable for every app
               | maker to create their own OS and perhaps even their own
               | hardware.
               | 
               | If you have no choice but to charge more than your
               | competitors and you can't justify the extra cost with
               | extra features or whatever and people stop using your
               | service and you go bankrupt then you have lost the game.
               | 
               | >The definition of "competitive" you seem to be using
               | here is not useful.
               | 
               | It seems useful to me. It's the basis of what makes this
               | game interesting.
        
               | fauigerzigerk wrote:
               | _> That is an option for Netflix. If they made their own
               | platform they could offer a more competitive price._
               | 
               | It may be an option for Netflix. It may be an option for
               | Facebook. But it's not an option for 99.999% of app
               | makers and it would be bad for consumers. Very bad.
               | Imagine you had to buy one device per service you're
               | using. I don't want to buy a Netflix device to watch
               | Netflix movies. This is just bonkers.
               | 
               |  _> It seems useful to me. It's the basis of what makes
               | this game interesting._
               | 
               | No. It's more than just useless. It is a great
               | demonstration of how every ideology becomes insanity if
               | you take it to its extremes.
        
               | paulryanrogers wrote:
               | This ignores the network effects for users and
               | integration costs for developers. Once a competitor gains
               | monopoly/monopsony/oligopoly position with those factors
               | introducing a new challenger becomes nearly impossible at
               | any cost. Ask Microsoft.
               | 
               | Anyway, Apple began in 1976, not 1996. And by '96 they
               | had both an established hardware brand and decades more
               | expertise than when Netflix launched.
        
               | andygcook wrote:
               | Apple was founded in 1976, which is a full twenty years
               | before Netflix.
        
           | taylorhou wrote:
           | interesting point. I wonder if an incremental regulation can
           | be passed whereas if the marketplace decides to become a
           | participant/competitor, those in which it competes against no
           | longer have to pay the marketplace fees to "even the playing
           | field" at least from a financial standpoint.
           | 
           | doesn't even have to be regulation. these companies can do it
           | in good faith but alas, life's not fair.
        
         | 32gbsd wrote:
         | we love these large companies. less people to trust, plus free-
         | ish services
        
         | epistasis wrote:
         | > Amazon sees what products are successful and profitable, then
         | makes knock-offs which they promote over the originals. And
         | now, reading into this, Google is manipulating their ad markets
         | using inside knowledge.
         | 
         | This is nothing new, as brick and mortar retailers have store
         | brands for popular products as well.
         | 
         | While I'm glad that the move to the internet lets us reevaluate
         | some of the social relations, I have a reeeeaaaaal hard time
         | finding any way that this sort of thing harms consumers.
        
           | makeitdouble wrote:
           | This is a tired argument.
           | 
           | Amazon doesn't work like a supermarket: a closer analogy
           | would be a shopping mall also providing cash registers to the
           | stores. Amazon doesn't buy from the producers nor act as a
           | distributor on most transactions. The risk is all
           | externalized, and they face minimal penalty (no loss of shell
           | space, no stocking risk) by having their product alongside
           | the original one.
        
           | brutal_chaos_ wrote:
           | It's a difficult argument, but perhaps one on quality could
           | be made (IANAL and maybe talking out my ASS). By having
           | Amazon promote their lesser-quality-but-supposed-same-product
           | the consumer is being hurt. I argue this as I have spent too
           | much on Amazon Basics. One specific case, USB cables, I had
           | to go buy am alternate brand of the same product soon
           | thereafter.
        
             | epistasis wrote:
             | Agreed that this will happen, but I also think this is
             | exactly the same thing that's expected of store brands:
             | cheaper, but could be of lower quality.
        
             | mjevans wrote:
             | The Amazon brands I see as the ONE product they should (in
             | theory) never allow co-mingling on and thus the safe one to
             | buy for a known quality.
        
           | lenkite wrote:
           | "This is nothing new, as brick and mortar retailers have
           | store brands for popular products as well".
           | 
           | The analogy seems spurious to me. Do brick and mortar
           | retailers charge other brands for being a market-place ?
           | Don't they actually _buy_ products of other brands ?
        
             | kreeben wrote:
             | Some super markets carry your favorite brand of frozen
             | chicken nuggets, others do not. Makes me think there are
             | agreements between producers and retailers and that those
             | agreements are all about money.
             | 
             | I bet there are clauses in those agreements that state that
             | the retailer should "make my brand of ketchup the first
             | brand that customers see" and that they cater to that
             | clause "for a small fee".
        
             | thow-01187 wrote:
             | Yes, this is the crucial difference
             | 
             | Brick and mortar stores are dealers, Amazon is a broker.
             | Dealers have inventories - they purchase items from the
             | suppliers and resell them - if they misjudge demand,
             | they're left off with useless goods. Brokers simply
             | facilitate a transaction between two parties - there's no
             | risk involved. The fact that brokers get to charge a higher
             | mark-up than dealers is just bizarre
        
               | lotsofpulp wrote:
               | > Dealers have inventories - they purchase items from the
               | suppliers and resell them - if they misjudge demand,
               | they're left off with useless goods.
               | 
               | Everything is negotiable. If a retailer has more power
               | than a supplier, then the retailer can demand a
               | guaranteed sale clause in the contract, requiring the
               | supplier to take back unsold goods and refund them.
               | 
               | https://www.comcapfactoring.com/blog/walmart-vendor-
               | financin...
               | 
               | https://factor-this.com/walmart-supplier-financing/
        
               | PeterisP wrote:
               | The major brick and mortar stores are _not_ solely
               | dealers, they often have various deals where they sell
               | items on consignment and do not pay for inventory until
               | after they 're sold, require payment for "shelf space",
               | etc. That's transparent from a customer perspective, but
               | from a supplier viewpoint they're often quite close to
               | brokers in practice.
        
               | mthoms wrote:
               | The consignment model and paying for shelf space are the
               | _exception_ in retail though, not the rule.
               | 
               | They tend to exist only where there is a huge asymmetry
               | in power between retailer (usually large chains) and
               | suppliers.
        
               | PeterisP wrote:
               | Isn't _most_ of retail done by large chains with a huge
               | asymmetry in power?
        
             | xioxox wrote:
             | In the UK, the big supermarket Tesco were criticised
             | heavily for how they charged their suppliers for various
             | things:
             | https://www.theguardian.com/business/2015/mar/30/tesco-
             | reduc...
        
             | joshuamorton wrote:
             | Surprisingly no (or at least not always). Think for example
             | of the displays of idk, stacks of holiday branded coke near
             | the entrance of Walmart. Coca cola pays Walmart for that
             | space and a coke employee likely puts the product there.
             | 
             | Joe's corner store and Walmart work differently, only one
             | negotiates brand deals.
        
           | mabbo wrote:
           | Maybe it was never right that those stores were also doing
           | that.
           | 
           | There's also a matter of the level of dominance that the
           | platform has. Something like half of e-commerce takes place
           | on Amazon; most online ads are via Google; and Apple
           | literally invented the name "App Store".
           | 
           | As for consumer harm, when the market is manipulated to
           | remove competition, we are all harmed. Not today, not
           | directly, but every day after that.
        
             | epistasis wrote:
             | I think the solution is two fold: 1) strong anti-monopoly
             | law, and 2) holding brick and mortar retailers to the same
             | standard that we apply to online retailers.
             | 
             | I think that you'll find that most grocery retailers have
             | nearly as large a monopoly inside their geographic area as
             | Amazon does in the retail space.
        
         | winternett wrote:
         | Just think about all the development and financial data and
         | ideas that google has a direct untraceable back door into
         | through running gmail, android phones, and chrome browser
         | alone...
         | 
         | I have resorted to using an old school notepad for my
         | development ideas pretty much. A software company I used to
         | work for got shuttered just 3 months after a big software
         | company paid the startup a visit to observe operations back in
         | 98, I've always been wary of corporate espionage since.
        
           | da39a3ee wrote:
           | That's not what the comment you're replying to is talking
           | about. They may not be trusted to control a marketplace,
           | doesn't mean we have to entertain silly conspiracy theories
           | about them reading your google docs! As another comment says
           | below, there is no way that can be happening because google
           | engineers would not keep it secret! Regarding your paper
           | notepad, I keep paper by my laptop also, it's a nice medium.
           | But seriously, to think it's protecting you against IP
           | espionage is (a) tinfoil hat territory and (b) almost
           | certainly a massive overestimation of your IP. You don't want
           | to go through life miscalibrated in this regard; apart from
           | anything else it will confuse those for whom you are a role
           | model.
        
           | rapnie wrote:
           | It always completely astounded me how countless professional
           | businesses are casually and mindlessly handing over their
           | most private internal communication and metrics to Google on
           | a platter. And aren't Google's privacy policies and ToS's
           | stating that all collected information can be used to
           | "improve their own services" or something along those lines?
           | Does that include 'extract business advantage' from your
           | data? I don't know and IANAL, but I'd prefer some separation
           | from such an ad-tech giant with my corporate intelligence.
        
             | ReaLNero wrote:
             | (Not a Google engineer)
             | 
             | Google's engineers are notoriously loose-lipped (which is a
             | good thing!!!). There's no way they would be able to keep a
             | secret like this. Anytime a customer's private data gets
             | accessed, you either a) need approval by someone or b)
             | "break the glass", which is only reserved for oncall fires.
             | Either way, it gets audited.
             | 
             | The only way I would believe something like this is if an
             | executive/higher up requests data access, gets it, and the
             | person auditing looks the other way.
        
               | capableweb wrote:
               | The last case of ad bidding proves that while not
               | everyone at Google knows whats going on, they are abusing
               | the data they are sitting on.
        
               | extropy wrote:
               | Which case is that?
        
               | [deleted]
        
               | underwater wrote:
               | That's assuming that there isn't another back channel to
               | access that data.
               | 
               | And even if they don't access file or email content,
               | metadata like access data like Play Store performance,
               | Google searches for competing products, and Google
               | Analytics data, might seem like fair game.
        
               | dannyw wrote:
               | How does Google respond to secret FISA orders which by
               | law cannot be audited or known by anyone but the direct
               | receiver and one pre-screened attorney?
        
               | judge2020 wrote:
               | Most businesses on Google Workspace don't see the US
               | government as an adversary. If they do, they encrypt
               | things or don't use Workspace.
        
               | extropy wrote:
               | This. If US government on your things to worry about
               | list, you host in Russia Cloud or China Cloud. Or roll
               | your own data center in some non US allied country.
        
               | dannyw wrote:
               | That's not my point. My point is by law Google must have
               | secret and extremely challenging to audit processes for
               | accessing user data, which can be abused for corporate
               | espionage.
        
               | amelius wrote:
               | Who says Google doesn't have some secret group with
               | security clearance, and only top management knows of its
               | existence?
        
               | ThePowerOfDirge wrote:
               | You missspelled Baidu and CCP there.
        
               | roenxi wrote:
               | Google employs a huge number of engineers. It can
               | assemble a very tight lipped group of people if it wants
               | to.
        
               | somehnacct3757 wrote:
               | You can perform these analyses with 'anonymized' data to
               | both observe the broad trends across a huge dataset, and
               | still claim you haven't invaded privacy.
               | 
               | With the scale of surveillance data available to Google,
               | this is how they have their cake and eat it too.
               | 
               | Once you know that note-taking apps (e.g.) are a hugely
               | growing space, it's easy to use publicly available data
               | to find the startups making a splash. Not once did
               | Google's data tell them Startup X is an acquihire target.
               | And yet, here they are at Startup X's door.
        
               | CamelCaseName wrote:
               | Sure, but that sounds much better than Google peaking
               | into Startup X's emails and determining how much runway
               | they have left, how management feels about their ability
               | to succeed, etc.
        
               | Zababa wrote:
               | I'm not sure that's true. For example the video about
               | serving 5 petabytes of data took 11 years to come out:
               | https://news.ycombinator.com/item?id=29082014
        
               | BiteCode_dev wrote:
               | "It's to fight terrorism, don't tell anyone"
        
               | freeflight wrote:
               | So Google has all the "checks&balances" in place, and
               | corporate managed to turn them into a flawless and
               | perfect system?
               | 
               | And the source for that claim is not even a Google
               | engineer, but apparently somebody who heard how Google
               | engineers are "notoriously loose-lipped".
               | 
               | From which loose-lipped Google engineer did you get that
               | information about "needing approval", "breaking glass"
               | and "audits"?
               | 
               |  _> The only way I would believe something like this is
               | if an executive /higher up requests data access, gets it,
               | and the person auditing looks the other way._
               | 
               | It's much easier to believe once you remember how Google
               | actually makes its money [0].
               | 
               | In that context it not only becomes believable, but it
               | actually fits perfectly into their MO [1].
               | 
               | [0] https://www.eff.org/deeplinks/2020/03/google-says-it-
               | doesnt-...
               | 
               | [1] https://www.theregister.com/2016/03/09/google_venture
               | s_yield...
        
               | joshuamorton wrote:
               | [I work at Google]
               | 
               | Your first link explains how Google doesn't actually give
               | your data to anyone else. Your second link is about a
               | company that Google Ventures invested in. The equivalent
               | would be that some company claims a YC-backed startup
               | stole some of their IP, and that somehow YC is at fault,
               | which is silly. Google isn't even a party to the lawsuit
               | (further, it's not clear that the company who sued even
               | won and to an extent it looks like they might be a patent
               | troll).
               | 
               | > From which loose-lipped Google engineer did you get
               | that information about "needing approval", "breaking
               | glass" and "audits"?
               | 
               | A bunch of it is public: https://cloud.google.com/access-
               | transparency. Access Transparency provides the access
               | logs to the customer, and Access Approvals allows a cloud
               | customer to prevent Google from accessing their data
               | without approval from the company. But yes, you could
               | also go searching HN for discussion of these topics and
               | probably find quite a lot from people.
        
           | pjmlp wrote:
           | You forgot Chromebooks, that everyone around here is so eager
           | to advocate, basically running their business on Google's
           | infrastructure.
        
             | ChuckNorris89 wrote:
             | _> You forgot Chromebooks, that everyone around here is so
             | eager to advocate_
             | 
             | Got a source for that?
        
               | pjmlp wrote:
               | Have fun, https://hn.algolia.com/?dateRange=all&page=0&pr
               | efix=false&qu...
        
             | squarefoot wrote:
             | I would advocate Chromebooks and Chromeboxes only because
             | once I remove the bootloader protection, flash the coreboot
             | firmware and install whichever OS I want, from my point of
             | view they're wonderful little machines. But from normal
             | users perspective, once they discover that the hardware is
             | locked to prevent the install of anything but ChromeOS,
             | they are garbage, and probably it is what they become once
             | the user has enough of the Google ecosystem then ditch them
             | well before their physical obsolescence. Locking down
             | hardware to prevent installation of other operating systems
             | should become illegal.
        
               | j-bos wrote:
               | Do you recommend any guides for removing the bootloader
               | protection?
        
       | agent48 wrote:
       | h
        
       | numair wrote:
       | > antitrust complaint against _Alphabet 's Google_
       | 
       | There's gonna be high-fives and cigars for all of the lawyers and
       | lobbyists who have successfully executed on the strategy to spin
       | off the ultra-high-revenue-generating but secretly-ultra-toxic
       | asset into a standalone entity before the heat got turned on. J&J
       | is trying to do this with the whole talc thing but it's probably
       | too late.
       | 
       | I am totally, totally impressed by Google's government and legal
       | people. They've gotten the company out of almost every mess
       | unscathed, and even done _something_ to erase its most senior
       | executives' rumored associations with Jeffrey Epstein. It's truly
       | remarkable. In my ultimate fantasy, they'd be working for the
       | greater good, rather than _against it_ , but alas.
        
         | judge2020 wrote:
         | The spinoff isn't as significant as you might think - all the
         | restructure did was aid in financial reporting and further
         | separate things like Verily from the Ad business.
        
       | lazyeye wrote:
       | Excellent!
        
       | eoo wrote:
       | Breaking down Google is not gonna work.
       | 
       | I guess that the simplest solution is to forbid Google from being
       | in the ad exchange business. Take down AdX and most of the
       | monopolizing effects they have on the ecosystem would be
       | dampened.
        
         | Andrew_nenakhov wrote:
         | Splitting Android and Chrome would be good enough for a start.
        
           | thebean11 wrote:
           | Better to split off YouTube so it has to compete with search
           | for ads.
        
       | zwaps wrote:
       | It is mentioned in the article, but Google lost an appeal in the
       | EU recently, related to ranking of its price search engine. But
       | one wonders whether that's really such a big deal for Google.
       | 
       | An interesting detail instead arises from the other cases. The
       | one case Google apparently WANTS to settle out of court is the
       | case on the use of data!
       | 
       | Now, this should tell the careful reader quite a bit about what
       | Google thinks is really important here.
        
         | IncRnd wrote:
         | > The one case Google apparently WANTS to settle out of court
         | is the case on the use of data!
         | 
         | Generally, companies want to settle out of court in order to
         | bring a case to a defined conclusion and limit future
         | liabilities. Along that vein, it's not an accident that this
         | case is now news after the judgement in the EU.
        
           | zwaps wrote:
           | I should have been more clear. Google is settling this case
           | because it matters, and because it does not want to have a
           | public court judgment on the matter of data usage.
        
       | kaycebasques wrote:
       | Supposing substantial antitrust actions are taken against Big
       | Tech, would that have any effect on rank-and-file salaries in
       | software? Big Tech kinda sets the bar regarding salaries, no?
       | When MSFT was hit with antitrust action did it have any effect
       | like this? Or is it an apples/orange comparison?
        
         | heavyset_go wrote:
         | The last time Adobe, Apple, Google, Intel, Intuit, Pixar,
         | Lucasfilm and eBay got hit with antitrust action, engineer
         | compensation soared and has been on the rise since.
         | 
         | Ultimately, prices are not determined by costs, and that
         | applies to the labor market, as well.
         | 
         | [1] https://en.wikipedia.org/wiki/High-
         | Tech_Employee_Antitrust_L...
        
         | djbusby wrote:
         | I've been in tech since 1997, spent some time at MS (back in
         | NT4,Win2k). The only wage pullback I've seen was dot-com
         | implosion. It lasted maybe two years of slightly reduced pay.
        
         | MeinBlutIstBlau wrote:
         | My lead has been working for 30 years as a dev and has told me
         | his salary has been pretty consistent throughout so I don't
         | believe that's the case. The coastal cities project absurd
         | salaries but when I look at indeed across all of the US,
         | 60-120k is pretty standard depending on entry to senior. If
         | they got knocked down a peg, I highly doubt a lot of people
         | working for google or microsoft would be vying for the lame
         | boring "conservative" work environments in the midwest or
         | south.
        
         | R0b0t1 wrote:
         | Higher wages. More market competition.
        
         | adam_arthur wrote:
         | Price of labor is a function of supply/demand. Developers still
         | in very short supply vs demand. But profitability sets a
         | ceiling on how much you can afford to pay.
         | 
         | It seems to me that if antitrust action were taken that really
         | eats into FAANG profits, that industry pay would decline. Not
         | overnight of course, but gradually in real terms. May still
         | rise in nominal terms.
         | 
         | Startups/companies have been forced to raise wages over time to
         | compete with FAANG.
        
           | larsiusprime wrote:
           | Unless of course deadweight loss from monopoly power n FAANG
           | is causing the industry as a whole to be less productive and
           | competitive. In that situation antitrust against FAANG could
           | actually cause wages to rise.
        
             | adam_arthur wrote:
             | Industry would be more competitive if FAANG were regulated
             | appropriately IMO.
             | 
             | But a lot of comp in tech is benchmarked against FAANG.
             | Specifically if you are a startup trying to hire top
             | 80th-90th percentile people. If their pay fell, I'm pretty
             | confident the top end of industry pay would as well,
             | despite more competition/productivity. Median pay likely
             | unaffected.
             | 
             | Even when you consider the low marginal cost to produce
             | SaaS and similar, the same is true of any competitor. So
             | you'd expect a highly competitive cloud (e.g.) landscape to
             | be low margin despite low cost to provide.
             | 
             | Looking specifically at Azure, AWS, Google Cloud... They
             | become somewhat of a local monopoly over their customers
             | due to costs of switching. The higher barrier/cost to
             | switching to a competitor, the greater pricing power the
             | company has. Even considering that the first choice has a
             | lot of competition.
             | 
             | Anyway, long story short, I think regulation that enables
             | low cost of switching is inevitable in the longer run. As
             | this provides the most competitive landscape, this highest
             | net benefit to society. Would need to be crafted
             | intelligently though.
        
             | heavyset_go wrote:
             | > _Unless of course deadweight loss from monopoly power n
             | FAANG is causing the industry as a whole to be less
             | productive and competitive._
             | 
             | It's this. Apple and Google control the _entire_ mobile
             | software market. They tax it excessively, to the point that
             | they get a 15% to 30% cut of almost every mobile app
             | transaction, and have for decades. If a business can 't
             | afford to give up 15% to 30% of their total revenue,
             | forever, then they're effectively prevented from bringing
             | their mobile apps to market. Apple and Google also
             | effectively decide what apps are distributed to the vast
             | majority of Americans, as their app stores are responsible
             | for 99% of all mobile app downloads[1].
             | 
             | It's insane that a duopoly has been allowed to heavily tax
             | and stifle innovation over entire markets in the mobile
             | space for more than a decade now. The entire mobile app,
             | operating systems and payments markets are dominated by two
             | companies, and they're doing everything in their power to
             | remain dominant, at the expense of consumers and healthy,
             | efficient markets.
             | 
             | [1] https://www.businessofapps.com/data/app-revenues/
        
       | kaycebasques wrote:
       | > The lawsuit also highlights Google's use of a secret program
       | dubbed "Project Bernanke" in 2013 that used bidding data to give
       | its own ad-buying an advantage. For example, in a 2015 iteration
       | of the program, Google allegedly dropped the second-highest bids
       | from publishers' auctions, accumulated money into a pool and then
       | spent that money to inflate only the bids belonging advertisers
       | who used the company's Google Ads. They otherwise would have
       | likely lost the auctions, the states alleged.
       | 
       | Can someone rephrase this and possibly explain like I'm five? I'm
       | not following the mechanics...
        
         | seanhunter wrote:
         | It's hard not to think this would be outright fraud rather than
         | an antitrust issue to be honest. It will be interesting to see
         | how this claim holds up.
        
           | BrianOnHN wrote:
           | Have you watched The Billion Dollar Code?
        
         | dillondoyle wrote:
         | I was going to ask the same thing. Also using some info from
         | the WSJ comment below.
         | 
         | - WSJ: "Texas alleges that Google used its access to data from
         | publishers' ad servers--where more than 90% of large publishers
         | use Google to sell their digital ad space--to guide advertisers
         | toward the price they would have to bid to secure an ad
         | placement."
         | 
         | - This is bid optimization & bid shading no? Both helping
         | buyers place a high enough winning bid. And then also offering
         | bid shading probable. With a second price auction the winning
         | bid clear price is 2nd price + .01 or whatever. All DSPs offer
         | this and use the open market data?
         | 
         | - Next WSJ graph seems like the crux of the insider trading is
         | not really accurate? If all major bidding platforms (dsp's)
         | offer this feature. e.g. it doesn't " unfairly compete against
         | rival ad-buying tools and pay publishers less on its winning
         | bids for ad inventory." ?
         | 
         | - "Google allegedly dropped the second-highest bids"
         | 
         | - So publishers still got paid the highest bid?
         | 
         | - Or maybe see above about bid shading. Maybe this could lower
         | the clearing amount paid to the publisher? E.g. $10, $7, $5
         | bids. Drop $7, winning price is now $5.01 ?
         | 
         | - "accumulated money into a pool and then spent that money to
         | inflate only the bids belonging advertisers who used the
         | company's Google Ads"
         | 
         | - I don't understand this. The WSJ article also doesn't mention
         | what money is pooled.
        
           | [deleted]
        
           | nuclearnice3 wrote:
           | I don't fully understand the mechanics either, but one point
           | of clarification that might help.
           | 
           | > - "Google allegedly dropped the second-highest bids" >> -
           | So publishers still got paid the highest bid?
           | 
           | During the relevant period and until end of 2021, Google is
           | running a second price auction. The highest bid wins and then
           | pays the second highest bid.
        
             | dillondoyle wrote:
             | Yeah that's what I wrote in the later part the $10,7,5
             | example I thought might be the case.
             | 
             | If that's the flat out only thing literally happening, I
             | can't think of a reasonable reason that would be in the
             | best interest of the publishers paying google to sell
             | supply side.
             | 
             | it's all jumbled when you control all sides of the auction
             | and infrastructure which is the real problem IMHO.
             | 
             | Maybe I can see a scenario where bid shading is conflated
             | here a bit or at least complicates the scenario.
             | 
             | For instance 'drop' the 2nd bid maybe means placing a lower
             | bid instead of 'deleting' one.
             | 
             | all DSPs have a good sense of what will win the auction and
             | offer bid shading to buyers.
             | 
             | Just trying to think through that line of thought. For
             | instance I buy political ads. Google knows that video
             | inventory X usually sells for $30 CPM, but my settings have
             | $50 CPM max bids because during the election it's hard to
             | get scale sometimes. my DSP would bid shade lower to say
             | $30.01 on that individual impression, and if I happen to be
             | the 2nd price maybe that is 'drop' they are refering too?
             | 
             | IDK i don't think traditional news media reporting here
             | will ever give enough information / they understand enough
        
               | waterloosong wrote:
               | fair enough, reverse engineering media reporting on legal
               | documents can be tricky
               | 
               | You need to realize just one more thing: to ensure that
               | there is no peeking into bids of other networks, the
               | actual code of the auction could be executed on a remote
               | server. But only a naive implementation would ask every
               | ad network client to send all their ad bids to the
               | server; on the other hand having ad networks send only
               | the highest bid would not be enough for a second-price
               | auction...
        
         | ignoramous wrote:
         | This summary by Jason Kint is pretty digestible:
         | https://twitter.com/jason_kint/status/1451621332983103492
        
           | dillondoyle wrote:
           | Ok. So basically if i'm reading that correctly? :
           | 
           | - google is basically offering bid shading on both sides of
           | the transaction. (RPO on pub side according to this tweet) -
           | Both dynamically increasing floor to buy NyTimes.com based on
           | the current likely bid - And for buyers increasing/decreasing
           | bid to pay the best 2nd price auction clearing price
           | 
           | which imho is the main problem that should be legislated; you
           | can't own all sides of a transaction AND the pipes. instead
           | of trying to convince a jury of some complicated insider
           | trading monopoly confusing mess.
        
         | vrc wrote:
         | This article explains it somewhat [1]. Still not much more
         | detail, but more nuance than the Reuters piece.
         | 
         | I guess the claim was that they manipulated where bids were
         | placed based on who had the highest bid. So that if a non
         | Google advertiser was going to win the auction, they removed
         | the second highest bid if it was a Google advertiser s.t. the
         | price paid for the slot dropped (second price auction). So in
         | effect, they maintained a higher payout for pubs when Google
         | programmatic bidders won by dropping the second price floor on
         | non Google-programmatic winners. Thus making more money AND
         | converting people towards programmatic.
         | 
         | I believe their counter argument is that the data they had
         | actually just made programmatic better from the start by
         | predicting these outcomes, no fraud needed
         | 
         | [1] https://www.wsj.com/articles/googles-secret-project-
         | bernanke...
        
           | zulban wrote:
           | I think you may have missed the mark on "explain like I'm
           | five".
        
             | waterloosong wrote:
             | Who wouldn't.
             | 
             | This is a second price auction that we speak of. Every ad
             | company is polled to send no more than two bids. Naturally
             | those would be the two highest bids from thousands that
             | they handle. So let's say that Google first and second bids
             | are G1 and G2, Facebook F1, and F2, some other company C1
             | and C2 and so on. So if those bids are sorted in descending
             | order it may look like, for example,                 A1 >
             | B1 > A2 > C1 > B2 > C2 > ...
             | 
             | In this example, the ad belonging to A1 gets served, the
             | price is the value of bid B1.
             | 
             | That's why it is called "second price" auction. If it was a
             | first price auction, the A1 advertiser would pay A1 bid
             | price, and could save some money by bidding slightly lower,
             | but still more than B1. Neither of these companies know up-
             | front what the other bid will be, but with a second price
             | auction there is no need for it, the A1 advertiser pays the
             | amount of B1 bid.
             | 
             | Same goes for bids G1 and G2, they don't know what other
             | bids will be. It could end up like this:                 G1
             | > G2 > C1 > ...
             | 
             | From time to time Google overhauls their AI. Let's say for
             | simplicity that the two highest bids from Google are the
             | same ads, the new bid for G1 is G'1 and the new bid for G2
             | is G'2. Though it could change who wins the auction, for
             | instance if it ends up like this                 G'2 > G'1
             | > C1 > ...
             | 
             | or C1 > G'1 > G'2 > ...
             | 
             | Or it could change only what the price is, for example if
             | it ends up like this, the price will lower from G2 to C1
             | G'1 > C1 > G'2 > ...
             | 
             | Or if there is some minimum bid value Z required by
             | publisher and it it would be G'1 > C1 > Z > G'2, it would
             | be only G'1 that is passed to the auction. "Google
             | allegedly dropped the second-highest bids from publishers'
             | auctions".
             | 
             | The "inflate only the bids belonging advertisers who used
             | the company's Google Ads" is a mixture of G'1 > G'2 > G2 >
             | ... and G'1 > C1 > G1 > ... and that sort of stuff
             | 
             | There is no accumulating money in a pool, keeping it to
             | spending later on something; there is a need for balancing
             | the two effects above, so that the overhaul won't go
             | overboard either way.
             | 
             | The case of C1 > G'1 > G1 > ... is missing from the Reuters
             | snippet. If it is in the lawsuit, it would end up as
             | "secretly forcing the advertisers who used competing ad
             | network to pay more", I guess
        
         | waterloosong wrote:
         | A good introduction to that topic is About Enhanced CPC:
         | https://support.google.com/google-ads/answer/2464964
         | 
         | "ECPC works by automatically adjusting your manual bids for
         | clicks that seem more or less likely to lead to a sale or
         | conversion on your website"
         | 
         | Of course, it is based on historical data
         | 
         | But you end up having a quite complicated code calculating the
         | auction bid.
         | 
         | I doubt that you could code it easily based on a cursory
         | reading of the About Enhanced CPC page.
         | 
         | Even more futile is guessing what specific details of that code
         | function that project Bernanke optimized, if your only source
         | is the lawsuit doc and newspapers relating it
        
         | 1vuio0pswjnm7 wrote:
         | See paras. 148-154
         | 
         | https://ia601404.us.archive.org/8/items/gov.uscourts.nysd.56...
         | 
         | There may be more details in the 3rd amended complaint that was
         | just filed. Has anyone found a copy online.
         | 
         | It would be surprising if anyone could ELI5 the mechanics of
         | Project Bernanke in a HN thread. If they could, the state AGs
         | would probably like to hear from them. :)
        
         | [deleted]
        
       | 1vuio0pswjnm7 wrote:
       | Google does not want documents produced to the DOJ to be shared
       | with the state AGs.
       | 
       | https://ia601404.us.archive.org/8/items/gov.uscourts.nysd.56...
       | 
       | Judge Castel reminded them that they must produce those documents
       | to the state AGs.
       | 
       | https://ia601404.us.archive.org/8/items/gov.uscourts.nysd.56...
       | 
       | Perhaps this team can benefit from the discovery conducted by the
       | DOJ.
        
         | dotancohen wrote:
         | > Google does not want documents produced to the DOJ to be
         | shared with the state AGs.
         | 
         | Are the documents produced to the DOJ public? Can attorneys
         | general not use any public information?
        
         | judge2020 wrote:
         | Can document discovery really be this sweeping? Or is this some
         | sort of request where the plaintiff can review potential
         | documents before those documents are submitted into discovery
         | and argued on?
        
       | syspec wrote:
       | I didn't find it in the article, but what is the complaints goal?
       | To break up google from its advertising business?
        
         | codyogden wrote:
         | No. It likely won't break up Google. It really would have
         | little effect on the consumers, in my opinion. This is about
         | protecting the interests of large advertisers and publishers.
         | 
         | https://storage.courtlistener.com/recap/gov.uscourts.nysd.56...
        
         | ZhangSWEFAANG wrote:
         | I don't think there is one unified goal but a series of
         | suggested changes.
         | 
         | For example, in the linked article
         | (https://www.reuters.com/technology/dozens-us-states-sue-
         | goog...),
         | 
         | "The states want the consumers to get their money back. They
         | also called for civil penalties and a court-imposed monitor to
         | ensure Google eases the process for consumers, app developers
         | and smartphone makers to use or promote alternatives to the
         | Play Store and the official payment system for 20 years. In
         | addition, the states seek to stop Google's payments to Samsung
         | and developers."
        
           | judge2020 wrote:
           | That's a very different case. The HN article is about the Ad-
           | rigging system abuse, not the consumer choice app store
           | lawsuit.
           | 
           | > accuses Google of using monopolistic and coercive tactics
           | with advertisers in its efforts to dominate and drive out
           | competition in online advertising.
        
             | [deleted]
        
         | judge2020 wrote:
         | Would be nice if a case number were included. I can't find it
         | anywhere in any of the original articles reporting on the
         | Texas-led lawsuit, unfortunately.
        
         | chiefalchemist wrote:
         | If it's antitrust then some sort of breakup would be the ends.
        
       | eitland wrote:
       | Still waiting for investigators to look into Chrome.
       | 
       | In 2009 we were finally getting rid of IE and the web browser
       | market was a healthy ecosystem with lots and lots of innovation
       | happening.
       | 
       | Today we are soon back on a browser monoculture with the owner of
       | the most popular product being a company that has enormous
       | interest in killing certain parts of the ecosystem and also has a
       | long history of killing of their own products.
       | 
       | How did it happen? In my opinion: massive abuse of power in two
       | other markets (search and ads) to push their way into browsers as
       | well. (Well, I'm feeling I might have been too generous above: I
       | could add 2 more - video and office tools - by pointing how they
       | selectively make Google Docs and YouTube perform worse in
       | Firefox, being so brazen about it that just changing the headers
       | so that Firefox identifies itself as Chrome makes the problems go
       | away.)
        
         | moonchrome wrote:
         | Safari/WebKit on iOS is a far worse offender. Part of the
         | reason you can't escape the app store tax is because WebKit
         | intentionally gimps webapps.
         | 
         | Even Microsoft wasn't this dirty with IE, you could always
         | install other browsers.
        
           | judge2020 wrote:
           | I mean, this won't work in court since being forced to use
           | WebKit isn't unique - it's just a technical requirement to
           | developing on iOS. Just as you're forced to use specific
           | Apple APIs to access sensor data or draw stuff to the screen,
           | you're forced to use a specific APIs to run JavaScript code.
        
             | the8472 wrote:
             | > it's just a technical requirement to developing on iOS
             | 
             | It's not a _technical_ requirement. It 's purely policy.
             | Nothing but policy stops others from compiling their own
             | runtimes for iOS.
             | 
             | Sensors are different, you need to access the hardware.
             | Browsers are just general purpose software.
        
           | nojito wrote:
           | Good luck trying to win a monopoly argument on an OS without
           | a majority marketshare.
        
           | cute_boi wrote:
           | There is one good aspect of safari. Because of fear of
           | loosing ios customer many website still works and doesn't
           | shouts at you "This website only works on chrome".
           | 
           | And Microsoft is worst company than apple in browser till
           | today. Their product Skype doesn't even work on Firefox. And
           | in macos you can easily switch firefox but in win11 good
           | luck.
        
           | eitland wrote:
           | I hear this a lot.
           | 
           | I'll listen
           | 
           | - when Safari has anyone near the marketshare across all
           | mobile devices as Chrome has on desktop and mobile.
           | 
           | - Apple has spent billions on promoting it
           | 
           | - has intentionally gimped several top ten web properties for
           | other browsers
           | 
           | until then this is a problem for iOS users, including me, not
           | an internet problem.
           | 
           | I get it, Safari is annoying, but lets not compare Apple
           | fleecing their own users (including me) with Google trying to
           | finish off what Microsoft failed to: to kill the open web.
        
         | sershe wrote:
         | Simple product (almost everyone wants more or less the same
         | things and/or things are hard to compare, like security) and
         | zero cost of switching is how it happened. It is expected that
         | it would produce this distribution.
         | 
         | I've started on Firefox before it was Firefox (2003?), then
         | switched to Chrome when Firefox became slow, then switched back
         | to Firefox when something annoyed me about Chrome (I don't even
         | recall what), then switched to Firefox when I wanted more
         | customization (how do I still live without custom tab colors?
         | sigh), then switched to Chrome again because Firefox started to
         | clamp down on extensions/customization and also it was kinda
         | slow again. As far as I can tell, Firefox is currently in
         | really bad shape... but I would switch instantly if I thought
         | it was better.
         | 
         | Google makes the best browser (IMO/so far/for an average user).
         | There only compelling reason for an average user to use a
         | different browser is lack of information.
        
         | diggan wrote:
         | Yeah, reminds me when Google purposefully blocked Firefox from
         | accessing Inbox. Changing the user-agent revealed that they did
         | that for no other purpose than "performance wasn't what we
         | wanted" while the application worked fine as it was, proved by
         | just changing the user-agent. They also let people use other
         | applications that are slow in Firefox, like Google Photos, but
         | somehow Inbox was different.
         | 
         | Gist: https://gist.github.com/VictorB/1d0f4ee6dc5ec0d6646e
         | 
         | HN comments at the time:
         | https://news.ycombinator.com/item?id=8606879
        
           | eitland wrote:
           | Thanks! I've added it to my collection.
           | 
           | I called authorities again earlier this week and they
           | promised to get back to me if they need more evidence.
        
           | dlubarov wrote:
           | If you believe Google blocked Firefox for competitive
           | reasons, how would you explain
           | 
           | - The Google engineer's explanation
           | (https://news.ycombinator.com/item?id=8495498) - do you think
           | he was just plain lying?
           | 
           | - The Firefox performance bug he mentioned
           | (https://bugzilla.mozilla.org/show_bug.cgi?id=1087963). Do
           | you think Google engineers went out of their way to search
           | for new performance bugs in Firefox, then figure out how to
           | introduce those bugs in Inbox's code?
           | 
           | - If Google wanted to use Inbox support to hurt competitors,
           | why would they invest engineering resources in making an
           | Inbox app for iOS? Considering that Android vs iOS
           | competition has much more impact on Google's business than
           | Chrome vs Firefox competition (e.g. see how much Google pays
           | to be the default iOS search provider).
        
       | Angostura wrote:
       | > Apple's App Store insider knowledge lets them discover popular
       | apps, then boot them off the platform when they decide to
       | compete.
       | 
       | Do you have examples, I'm aware of a few examples where Apple
       | built features in that used to be 3rd party apps. But kick them
       | off?
        
         | skinkestek wrote:
         | I'm fairly sure there was a high profile case this spring (was
         | it when Apple announced they'd let you use an iPad as a second
         | screen?)
         | 
         | I'm even more sure there was something going on even more
         | recently with a third party apple watch keyboard for blind or
         | something who got booted because "they abused accessible
         | features" or something that had never been a problem before,
         | and it so happened that Apple had a solution ready on their own
         | launch a few days later.
        
         | quitit wrote:
         | One of these things is not like the others - and making an
         | "everyone is doing it" kind of statement really understates the
         | seriousness of what Google is doing.
         | 
         | Google's actions here systematically undermine auctions to
         | their direct financial benefit, while delivering sub-optimal
         | results for advertisers. In a way that is not an accident, but
         | deliberately engineered and even given snappy project names
         | that allude to the exact purpose of the deception. A better
         | comparison is how certain banks were found to be reordering
         | transactions to maximise the number of overdraft fees owed.
         | 
         | Apple only have a handful of apps and of those fewer are paid
         | apps (they're the pro-level tools). To claim that apple uses
         | its knowledge of the store to make app duplications, then boot
         | the original concepts off the store is plainly false.
         | 
         | An example given below by another reader is talking (I believe)
         | about a company called Luna which produces a dongle that allows
         | the mac to share their screen onto an iPad. Apple has always
         | had this feature through the screen sharing service (I did the
         | same, without a dongle, using VLC on a gen 1 iPad, long before
         | Luna had a product - thus the feature is arguably obvious.)
         | Over the years Apple have increased the functionality and ease
         | of use of the screensharing features as their hardware has
         | become more capable of running them - including the latest
         | macos update which expanded these features further. Luna
         | however feels they should have a monopoly on any screensharing
         | functions with their dongle hardware. I'm yet to hear a
         | convincing argument from this developer.
         | 
         | I think the core issue is that the app store is large and
         | invariably any changes Apple make to their own software can be
         | tenuously attributed as copying of some random title on the app
         | store. Common-sense arguments such as: apple don't charge for
         | the feature, the feature is obvious, or the feature is merely
         | an enhancement of an existing feature, are readily discounted
         | in favour of depictions of an evil mastermind preying on
         | utterly tiny revenue sources.
        
       | dantheman wrote:
       | It'd be great if states actually focused on real problems like
       | education and medicine instead of going after tech which provides
       | services for free and is generally liked.
       | 
       | No one is blaming tech for debt or financial ruin.
        
         | krono wrote:
         | You cannot be serious. Where do you think all that money went?
        
           | Nasrudith wrote:
           | Serious zero sum financial thinking there - assuming
           | profiting from a transaction means the other party must be
           | worse off. And implicitly applying the thieves's syllogism
           | too that is "you have it, I want it, therefore you stole it
           | from me".
        
           | danielmarkbruce wrote:
           | Self driving cars, free email, free docs, sheets etc.
           | 
           | It is a serious point. Protecting advertising companies from
           | each other is a perplexing choice of resource allocation
           | given the alternatives.
        
             | ajvs wrote:
             | "don't go after monopolies which are abusing their
             | dominance to keep everyone else poorer"
        
             | onion2k wrote:
             | Given the choice between free email and Google paying
             | enough tax to improve the entire education system of the
             | US, why do you think people would pick email? Do you
             | believe _everyone_ is stupid?
        
               | danielmarkbruce wrote:
               | It's an antritrust suit.
        
               | charcircuit wrote:
               | >why do you think people would pick email
               | 
               | I don't like taxing so I would never advocate for taxing
               | a person or a company.
        
             | krono wrote:
             | So big tech gave all this stuff away without asking or
             | taking any sort of compensation (i.e. free), and yet
             | they've managed to accumulate levels of influence and
             | wealth previously only beholden to sovereign states.
             | 
             | Coincidentally, around the same time big tech came into
             | being, the nation that birthed, nurtured, and protected
             | them started losing its world dominance to rival
             | sovereignties that took the opposite approach in dealing
             | with these generous givers by monitoring their behaviour,
             | limiting their power and influence over the nation and its
             | citizens, enforcing compliance with national policy (for
             | good or bad), and extracting a fair share of the profits in
             | return for their use of public infrastructure.
        
               | danielmarkbruce wrote:
               | They took the money they made in search ads and built a
               | lot of products they give away, yes. The wealth is all
               | from search ads.
               | 
               | The US had a little moment of time where it was the
               | dominant power. It wasn't the dominant power in 1900 and
               | it won't be in 2050. The idea that the decline is because
               | of Google etc defies a much simpler explanation. As soon
               | as China moved off of straight communism they were bound
               | for dominance due to their population and general work
               | ethic. There is no reason that over the long term China
               | should have lower GDP per person than the US. Hence
               | they'll have about 4x the total GDP and be able to spend
               | 4x as much on military due to their 4x population size v
               | US.
        
         | liveoneggs wrote:
         | Google's abuse of the market takes money away from small
         | businesses (buyers of ads, sellers of ads, displayers of ads)
         | and consolidates that money back into Google's hands. It has a
         | direct trickle down effect on financial ruin by making it less
         | and less possible to operate a small business. The stealing of
         | this money also raises prices on everything else (google-caused
         | inflation) which harms consumers.
        
         | ViViDboarder wrote:
         | Why not all of the above? The AG is an attorney. Their job is
         | this kind of action, not education or medicine.
         | 
         | The AG should be doing this and the appropriate people should
         | be doing their jobs to improve education and medicine as well.
        
         | lenkite wrote:
         | Yep tech companies should continue to cheat and break laws as
         | long as they offer some free stuff to folks. We should kneel
         | and worship them as gods.
        
         | Oddskar wrote:
         | > provides services for free
         | 
         | It's not free when _you_ are the product being sold.
        
       | Goety wrote:
       | They found the gap in the armor.
        
       | [deleted]
        
       | ZhangSWEFAANG wrote:
       | What incentive is there for states to sue over monopolies? Is it
       | simply to advocate for their constituencies?
        
         | dkjaudyeqooe wrote:
         | Upholding the law? Having a functioning market and economy
         | perhaps? It's the government's job to regulate the market.
         | 
         | Abusing your (near) monopoly position to drive out competition
         | is illegal.
        
           | t-3 wrote:
           | > Abusing your (near) monopoly position to drive out
           | competition is illegal.
           | 
           | Yes, but it happens so often with so little attention paid
           | that stories like this more often make me think a politician
           | is looking for election funding rather than trying to enforce
           | the law.
        
             | mhh__ wrote:
             | Is that looking a gift horse in the mouth?
        
               | t-3 wrote:
               | Not really, when any investigations or actions are likely
               | to be indefinitely delayed as soon as a lobbyist writes
               | check. If they actually do something other than slap-on-
               | the-wrist fines that don't even do damage, you won't hear
               | me complaining, but I don't have high expectations. The
               | EU seems to be far more interested in reigning in big
               | tech, but they don't seem to be any more succesful, and
               | their most substantive efforts have had lackluster
               | results (I mean, really, is anyone's privacy improved by
               | having more javascript popups added to _every single_
               | page? Does it even lower the _potential_ for tracking and
               | abuse, let alone reduce the actual commission of such
               | acts?).
        
               | ziml77 wrote:
               | Is it possible the EU is being careful because the major
               | tech companies that it would want to punish are all
               | American? People over here could see those actions as the
               | EU trying to take down American companies so that
               | companies in EU countries can take an overwhelmingly
               | dominant position. I would imagine that perception could
               | lead to restrictions and tariffs just like we've applied
               | to China.
        
               | pgeorgi wrote:
               | I'm not sure the EU cares:
               | http://fingfx.thomsonreuters.com/gfx/editorcharts/EU-
               | GOOGLE-...
        
               | pgeorgi wrote:
               | > I mean, really, is anyone's privacy improved by having
               | more javascript popups added to every single page?
               | 
               | How about app stores implementing "privacy dashboards"
               | where you can see what data an app collects and how it
               | uses it? With the idea that app makers become more
               | careful in what they do because it becomes so obvious.
               | That's a result of the GDPR.
               | 
               | Things take a while when the law is designed for not
               | being used as a ban hammer but to coerce better behavior.
               | The DPAs are mostly working in the background to get
               | actors into compliance. Every time you see a lawsuit over
               | such things, a multi-year process broke down to the point
               | where that's the last recourse.
        
           | philjohn wrote:
           | There seems to be other equally pressing market capture
           | targets to go after - Sinclair broadcasting being one
           | example.
           | 
           | It seems interesting that "Old Media" is coming off unscathed
           | and the ire is all directed at "New Media".
        
         | Nasrudith wrote:
         | Standard careerism demagoguery (remember Backpage?) and trying
         | to bully for favorable coverage for themselves. The ignorants
         | see "Big Tech" as a traditional media company and are mad they
         | aren't playing ball.
        
         | [deleted]
        
         | koalaman wrote:
         | Call me cynical, but I've always assumed these and the european
         | efforts are bought by companies that are threatened by Google.
        
       | dkjaudyeqooe wrote:
       | "Project Bernanke" ie, a licence to print money.
       | 
       | I bet they're perhaps regretting their witty code name right now.
        
         | 0xcde4c3db wrote:
         | For the unfamiliar: in his role as Chair of the Federal
         | Reserve, Ben Bernanke became somewhat infamous for his
         | endorsement of "quantitative easing" as a response to the 2008
         | financial crisis. This was (oversimplified) a mildly fancy way
         | of flooding banks with newly-printed money to offset the impact
         | of falling asset prices. Bernanke became known in some circles
         | as "Helicopter Ben" in reference to an earlier speech in which
         | he (in turn) approvingly referenced Milton Friedman's thought
         | experiment of a "helicopter drop" of cash to the general public
         | as a method for boosting liquidity in the economy [1].
         | 
         | (I feel compelled to point out that as far as I can tell, there
         | doesn't seem to be a solid consensus that quantitative easing
         | was objectively poor policy under the circumstances; a lot of
         | this discourse apparently fell somewhere in the gray area
         | between good-natured ribbing, vacuous memeing, economics school
         | schisms, and mockery of the ostensible hypocrisy of "fiscally
         | conservative" Republicans).
         | 
         | [1] https://en.wikipedia.org/wiki/Helicopter_money
        
           | chalst wrote:
           | It's worth noting that the main beneficiaries of QE are the
           | fixed-income desks at commercial banks, unlike the actual
           | helicopter money proposal, which would benefit the people
           | most hurt by recessions, holders of debt outside the
           | financial system.
           | 
           | It says a lot about the quality of public discourse on
           | finance that the debate around QE has mostly been around
           | whether it is inflationary, and not who benefits from this
           | rather peculiar way of dealing with the failure of
           | traditional monetary policy at the zero lower bound.
        
         | IncRnd wrote:
         | That they would even use that name indicates they hold
         | themselves superior and beyond reproach. That bubble seems
         | about to burst now.
        
       | perth wrote:
       | Not sure if this was mentioned but does anyone else think it's
       | sleazy that Google tries to poach employees from other companies
       | via Foobar[1]?
       | 
       | [1] https://foobar.withgoogle.com
        
         | Nasrudith wrote:
         | No - fuck anybody who thinks employers own their employees. We
         | want "poaching" - that is a healthy labor market.
        
         | BrianOnHN wrote:
         | What's that?
        
           | perth wrote:
           | Google hijacked my search result with that fine recruiting
           | method at work a few weeks ago. I checked it out with a
           | burner Google account and it seems like it was a recruiting
           | method where they have you solve programming questions on
           | that service[1]. I did a few of the "levels" and they're all
           | just tricky programming questions. However..
           | 
           | Even not signed into an account, which, I don't sign in to
           | any Google services at work in interest of protecting IP,
           | Google was able to track enough via cookies / me being on an
           | si corp network to throw that to me.
           | 
           | [1] Pic I took on my phone: https://i.imgur.com/7X7ybUv.jpeg
        
             | Jensson wrote:
             | Google has done that for about a decade.
        
               | perth wrote:
               | And.. does doing something questionable for a long time
               | make it good? Shouldn't abusing their dominance in the
               | search engine marketplace to poach employees be a pretty
               | big anti-trust thing?
        
             | sidibe wrote:
             | It has nothing to do with you being on a corp network. I've
             | gotten that on my personal computer
        
               | perth wrote:
               | Then how do they choose who to flip the switch on for it?
               | Purely fingerprinting of searches completely at random
               | with no direction?
        
               | sidibe wrote:
               | I don't know how it's decided but yeah pretty sure it's
               | just based on searches and randomness. Someone searching
               | for programming terms related to openings and willing to
               | answer the questions is likely to be a good candidate
        
               | perth wrote:
               | I'm still skeptical that location/network address doesn't
               | have a "weight" in the equation; but yeah it could be un-
               | related you make a good point.
        
             | judge2020 wrote:
             | Foobar is well-known and sometimes super easy to guess. For
             | a few years before 2019, you could get it by simply
             | searching "python list comprehension". It's just a way to
             | find people searching certain stuff and encourage them to
             | work at Google. Having an automated system pre-screening
             | people in this way vastly improves the quality of
             | applicants that come in.
             | 
             | https://news.ycombinator.com/item?id=17289580
        
               | perth wrote:
               | Ok well this ycombinator post you linked confirmed my
               | suspicions that the challenge is targeted based on
               | location/network address.
               | 
               | > "ISTR that only works from the USA."
        
               | iamstupidsimple wrote:
               | Nope. I've had foobar from outside the US.
        
       | Jerry2 wrote:
       | I find it sad that all this is coming from state AGs and not from
       | the DOJ and FTC. It just shows how corrupt our federal
       | institutions are due to regulatory capture [1].
       | 
       | I still remember how Google escaped antitrust enforcement during
       | the Obama presidency. There was a "revolving door" for Google
       | execs and White House officials who would fill positions at both
       | places [2].
       | 
       | When FTC prepared a massive report of Google's antitrust
       | violations [3], the enforcement was quashed as a result of White
       | House lobbying by Google's lobbyists (most of whom worked for the
       | government a year or two prior.) [4]
       | 
       | Lots of emails were released under FOIA showing how (former)
       | Google execs who were at the White House told the FTC not to
       | bring on the lawsuit. [5] [6]
       | 
       | [1] https://en.wikipedia.org/wiki/Regulatory_capture
       | 
       | [2] https://theintercept.com/2016/04/22/googles-remarkably-
       | close...
       | 
       | [3] https://graphics.wsj.com/google-ftc-report/
       | 
       | [4] https://archive.md/74r5F
       | 
       | [5]
       | https://www.theregister.com/2016/08/18/google_had_obamas_ear...
       | 
       | [6] https://www.wsj.com/articles/google-makes-most-of-close-
       | ties...
        
         | nverno wrote:
         | The DOJ has a lawsuit against Google in the works, it's even
         | mentioned in the article. [[I'm hesitant to provide a citation
         | as I'm not sure of the latest source]]
        
           | vmception wrote:
           | Also aside from corruption and capture, there are external
           | forces.
           | 
           | States really have little leverage, they want competition but
           | could really just wind up completely unserviced as a
           | corporation says bye bye to their irrelevant market.
           | 
           | The feds dont go heavy handed as they have the capability to
           | and massive leverage, but actually debilitating a company
           | could be giving the market to the other remaining companies
           | which from their perspective is worse because they created
           | the monopoly.
        
             | AnthonyMouse wrote:
             | > States really have little leverage, they want competition
             | but could really just wind up completely unserviced as a
             | corporation says bye bye to their irrelevant market.
             | 
             | The state of Texas has a GDP similar to that of Canada, the
             | state of New York to that of Russia, the state of
             | California to that of France. Are these irrelevant markets?
             | Even Vermont, all the way at the bottom, is beating out El
             | Salvador, Honduras, Haiti, etc.
             | 
             | Also note that multiple states are joining together in the
             | same suit.
             | 
             | Even if a corporation was willing to abandon an entire
             | state over this, then all the people in that state would
             | need something else, and that something else would become
             | big enough for third parties to have to care about it and
             | thereby become a viable competitor everywhere. Which might
             | just be the best thing that could happen.
        
               | vmception wrote:
               | When a service has a little asterisk that singles out
               | some states they dont operate, its not necessarily
               | because of a specific law, it can be in response to
               | specific regulatory action against that service that they
               | opted not to deal with
        
             | djbusby wrote:
             | So? Do nothing and let the current monopoly get stronger?
        
               | vmception wrote:
               | They just try to make their stance clear that they want
               | competition to be more organic than whatever they are
               | reacting to. Monopolies arent prohibited, anti-
               | competitive practices are sanctionable.
        
               | nverno wrote:
               | I think it is a safe bet that there will always be new
               | monopolies developing. There are always new markets, and
               | benefits often don't scale linearly with growth.
               | 
               | It's a complicated, error-prone business, trying to
               | disrupt monopolies effectively in such a way that is
               | actually beneficial to the community. If you think about
               | it, the cost/benefit analysis is based largely on
               | economic predictions which are never that accurate.
        
               | AnthonyMouse wrote:
               | > I think it is a safe bet that there will always be new
               | monopolies developing. There are always new markets, and
               | benefits often don't scale linearly with growth.
               | 
               | Find a monopoly and you'll probably find a regulation
               | propping it up.
               | 
               | For many of these tech companies it's DMCA 1201 and other
               | things that prohibit adversarial interoperability.
               | 
               | If you have a law that lets you boot competitors out of
               | adjacent markets once you have dominance in one of them,
               | you take over the other one too. Then nobody can compete
               | with you unless they can replace you in both markets,
               | meanwhile you enter a third.
               | 
               | The first thing we need is to get rid of such laws.
        
               | MereInterest wrote:
               | https://en.wikipedia.org/wiki/Natural_monopoly
        
               | AnthonyMouse wrote:
               | This tech stuff isn't a natural monopoly.
               | 
               | The defining characteristic of a natural monopoly is that
               | customer is paying a large amount per unit to cover costs
               | that stay the same no matter the amount of usage. The
               | per-unit cost for most of this tech stuff is
               | approximately zero, and the ones that aren't zero (e.g.
               | semiconductor manufacturing) have significant unit
               | production costs and are not a natural monopoly either.
               | 
               | It's also questionable whether even "natural monopolies"
               | would be monopolies absent regulation. It's more
               | _efficient_ to have a single power grid, but if there was
               | no law granting a statutory monopoly to a single provider
               | and the existing provider became abusive, somebody would
               | build a parallel power grid. Because having two would
               | cost twice as much as having one, but that 's still less
               | than paying five times as much to an unrestrained
               | monopolist. So the result of unregulated "natural
               | monopoly" still isn't a monopoly, it's just competition
               | which is unusually inefficient.
        
               | mrep wrote:
               | I would argue it basically is because the high fixed
               | costs are from paying the developers to write and
               | maintain good competitive software and the marginal cost
               | of each new user is basically free.
               | 
               | That exactly matches wiki: "A natural monopoly has a high
               | fixed cost for a product that does not depend on output,
               | but its marginal cost of producing one more good is
               | roughly constant, and small."
        
               | AnthonyMouse wrote:
               | The traditional definition wasn't really contemplating
               | software, because the important thing that makes it a
               | natural monopoly is that building a second one would
               | cause the user to have to pay a lot more. If you have one
               | power grid, it costs a billion dollars to operate, so the
               | average user has to pay $1B/N where N is the number of
               | users on the grid. If you have two power grids, now the
               | average user has to pay $2B/N, which is twice as much,
               | and most importantly, is a large difference.
               | 
               | With software, there are so many users that the
               | difference between $X/N and $2X/N is still ~zero. You can
               | have two providers, or ten, and you're in no danger of
               | them being unable to recover their development costs even
               | at low prices. The cost of paying a number that rounds to
               | zero twice is well worth the benefits of competition.
               | 
               | In other words, the barriers to entry are low (absent
               | some artificial constraint). It isn't that the fixed
               | costs are _high_ , they're only "high" relative to the
               | essentially non-existent unit cost. That's totally
               | different. It means that if you want to enter the market
               | for email clients or messaging apps or phone games, that
               | can be done by an individual or a small business. A small
               | business can't build their own power grid.
        
               | djbusby wrote:
               | Shouldn't the DOJ _not_ be concerned with the economic
               | impact? Isn 't their objective Justice not Economic
               | Prosperity?
        
               | nverno wrote:
               | In the US, they are concerned with economic impact, they
               | do a whole in-depth economic cost/benefit analysis as
               | part of determining if it's worth breaking up a
               | monopolist. Whatever 'justice' means in this scenario
               | seems highly subjective. If a monopolist was providing by
               | far the best/cheapest goods and services, more people
               | might prefer that scenario to an alternative competitive
               | market with less benefit on average.
               | 
               | It's arguably unjust for the government to handicap
               | specific people, but also unjust for others not to feel
               | like they all have a fair shot to capture the market. Any
               | time people, not fate, are in charge of handicapping some
               | people will think they are getting the shaft.
        
               | robbedpeter wrote:
               | That sounds rational, but it's not. There's nobody,
               | public or private sector, nobody at all that can make a
               | real economic assessment of the value of a service line
               | Facebook or Google. Those who claim otherwise are stupid,
               | lying, or selling something. Markets and economics are
               | unpredictable systems that have nothing to do with models
               | of rational actors behaving in their own self interest.
               | They're fundamentally extensions of chaotic biological
               | systems and inherently resistant to oracles as a matter
               | of mathematical reality.
               | 
               | What would be rational is if we actually endeavored as a
               | society to make sure everyone is accountable to the same
               | rules to the same degree. By using this magical thinking
               | / cost benefit analysis, we're simply incentivizing
               | victory for the best storytelling middleman.
        
               | nverno wrote:
               | I think the difficulties/uncertainties you mention here
               | are a large factor in the feds reluctance to break up
               | monopolies. I have no personal opinion on these methods
               | without taking a much deeper dive into the details. It
               | does seem like the big breakup of Ma Bell worked out
               | well, though.
               | 
               | The statement "everyone is accountable to the same rules
               | to the same degree" could be either pro- or anti- federal
               | action.
        
         | hellbannedguy wrote:
         | During Obama it didn't seem like the problem it is today.
         | 
         | I'm not saying it wasen't a problem, but America thought these
         | FANG companies were solving our problems.
         | 
         | I never liked Google Executives going to the White House, but I
         | don't think it was because Obama sold out. Tech was very new.
         | Google honestly wanted to help.
         | 
         | It seemed like every young guy wanted to be Zuck. Hell even
         | Zuck thought he could run for president one day.
         | 
         | It was all so inspiring. Now it's just ugly.
        
           | DannyBee wrote:
           | I was there in DC with Google from 2006-2012, and I think
           | that's a fair view. We got asked if we could help, and wanted
           | to help, so we tried where we could. Of course now everyone
           | just wants to paint everything with malicious and negative
           | intent so I'm sure someone will in response, but it really
           | was just a bunch of smart techies trying to help.
           | 
           | (Can't speak generally to zuck, but at least from what I saw
           | people didn't really view Facebook and zuck the same way)
        
           | earthscienceman wrote:
           | You lived in a bubble, nobody wanted to be Zuck in my circles
           | and he was mocked ruthlessly for how out of touch and selfish
           | he was. His comment about becoming president was seen to
           | reinforce that. Facebook was also widely seen as rapidly
           | becoming the place for drama and vapid political commentary.
           | This was ... college during 2008, so not exactly last year.
        
             | bcrosby95 wrote:
             | Yes, no one I knew wanted to be zuck.
             | 
             | But I'm surprised you could find much drama or political
             | commentary through all the app spam of the late 00's in
             | Facebook.
        
             | stemlord wrote:
             | Same here, so many of us have been eagerly waiting for this
             | bs to unfurl for a very long time now.
        
           | GeekyBear wrote:
           | >During Obama it didn't seem like the problem it is today.
           | 
           | The career antitrust officials at FTC thought Google should
           | be prosecuted, but the political appointees (of both parties)
           | that control the agency shut down their investigation.
           | 
           | >The investigators, who handed the document to the five FTC
           | commissioners who would decide whether to launch an antitrust
           | suit, found in 2012 that the search company's "conduct has
           | resulted -- and will result -- in real harm to consumers and
           | to innovation in the online search and advertising markets."
           | 
           | https://www.cnet.com/tech/services-and-software/google-
           | cause...
           | 
           | Meanwhile, the EU proceeded with their own antitrust
           | investigation into many of the same issues and Google was
           | found to be guilty.
        
           | IncRnd wrote:
           | > During Obama it didn't seem like the problem it is today.
           | 
           | > I'm not saying it wasen't a problem, but America thought
           | these FANG companies were solving our problems.
           | 
           | You are unintentionally projecting what you believed to be
           | the truth, thinking that others also believed the same as
           | you. I can assure you that not all of America thought those
           | FANG companies were solving our problems.
        
         | [deleted]
        
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