Google's illegal monopoly: Can we live without it?

Published Aug 12, 2024, 2:33 AM

A US federal judge has ruled that Google’s search business is an illegal monopoly in a landmark case widely seen as the Biden administration’s efforts to clamp down on Big Tech. How did Google become the world’s most powerful search engine that it became part of our vernacular and what would the internet look like without it? We asked Oo Gin Lee, tech industry observer and PR practitioner, Gloo PR to give us his take on Asia First with Andrea Heng and Hairianto Diman. 

Now Asia first on CN A 938,

I want to move to our top international headline. Now, you know how you're trying to remember something and as you try to figure it out, you just instinctively say, let's just Google it. There we go.

That's because the name has become part of our vernacular. We no longer search for something, we no longer look it up, we Google it. But do you remember the days when we do just that? But on the other search engines, we had other search engines like Yahoo and being an MS N even, right? Do we say that? Can you Yahoo that can you y Yeah, it, it doesn't roll on the tongue as easily, right? In fact, your internet browser was actually different from your search engine if you recall.

Now, Google wasn't just a search engine. It eventually became nearly everyone's default internet browser on your Google Chrome, right?

Um And it had also so many indisposing tools that we find, you know, completely unable to live without today. Exactly the chrome we're talking about the chrome. But do you know Andrew this dominance is a double edged sword? You know, it has sure, you know, it has written a lot of money for them. It has gained their popularity with us all, you know, on their platform,

but it has also landed them in hot soup. You know, most recently in the US federal judge there has ruled that Google violated antitrust law spending billions of dollars to create an illegal monopoly

and become the world's default search engine. Now, this is momentous because it's seen as the first big win for us, authorities taking on big tech's market dominance. So let's get the thoughts of Eugen Lee now, former tech editor and tech industry observer. Now he's also the founder and managing director of Glup. Very good morning to you Jin Lee.

Search engines like Yahoo were already around before Google was first introduced in 1998. Now, having only been around for a little over two decades, what was the one thing that brought Google the dominant now,

guys,

actually, my, my, my career in tech journalism started in the year 2000. And I do remember this very vividly in those days, there were a lot of other search engines like Yahoo Excite Infosec Vista. And you know, this was just about the time the internet really took off, right?

Um I'm not sure if you guys remember you are significantly younger, but in the days Yahoo actually was a directory. The idea behind Yahoo was you would go to this place and do everything there. And that's, and that's how they made the money right by keeping you within Yahoo. And of course, the main reason you started to go Yahoo was of course try to use search engine.

Um I remember this because in the year 2000 people started talking about Google, right? This new search engine that is clean, all you have is a blank page and the search bar and, and you know, I think Google became very easy because it was the best search engine system and I think it still is the best search engine system.

But what was it that gave Google the edge exactly over these other search engine, your alta vista, your Yahoo and being back in the.com era.

Um ok, there was no bing then, but, but basically what Google did was I think at the time it was a start up and he kind of prioritized consumer

consumer benefit, right? Instead of thinking of making money, it came as a start up. So of course you win the consumer interest, right? And, and the only way to do it then was of course to build a better product. Ah, what, what Google did was it? It tells you when you, when you key in something as social engine to try to give you the best answer

they are looking for. Whereas a lot of the other ah, brow search engines then they, they had some deals with people and they are trying to keep you on to the page and trying to, you know, there are a lot of money involved in this. I think Google started up with no money. Its main job was to use better algorithms to let you get to the result you are looking for.

Yeah. J but many companies also have turned to Google to advertise their products and services. Now, in 2023

Google advertising made up about 77% of its parents company Alphabet's total sales. How much of this has played a part in how far they've come in dominating the search engine platform.

Um If you think about how Google makes its money, it really makes money from search, right? Ah And to make your money off search, you must first be the main search engine. It's quite clear, you know, to all of us that Google is the king of search today, both on your mobile as well as on your desktop. So once you have that, once you have people using a search engine, then that's where the business comes in.

It makes a lot of money from, from uh search advertising, right? Uh I think you've heard of things like a words and ads and these are all various schemes in place for, I think for decades now uh where Google makes its money. Uh and, and, and the issue with this case or, or, or the DOJ case, right? Any trust case is that they are saying that uh because Google really kind of kind of is the the monopoly in the search engine

business, right. So it makes deals with browser makers and wireless carriers to kind of put it as the default search engine on the platforms. And then as a as a result affects choice and competition. So that that is the crux of it. One of

the the most interesting part of this case was to deal with Apple. So, you know, Apple on your ios on ipads has a default search called Safari sofa actually uses Google search by default. And it is a deal that Apple makes with Google where Apple gets a share of the revenue. I read that Google pays them over $10 billion a year just to keep itself as a default. So what, what the the US Department of Justice is saying that this actually stifles competition, right?

So I wanted to exactly raise that case. Now the federal judge in the US has ruled it a monopoly. Other countries have also penalized Google for similar reasons, anti competitive business behavior, anti trust. How significant is this US ruling for Google compared to past penalties? And could this actually set a precedent for other countries that haven't yet penalized Google for the same reason?

So antitrust or competition law is really a domestic legislation.

Ah, it means that in every country, the law is different. I used to be a lawyer though. It's I'm very rusty now I've been in media for over 20 years. Ah, but, but you see the thing in the European Union, this antitrust and anti condition law is very, very stringent and, and you can tell the US is lagging behind the European Union legislation. So, in a way,

ah, the, the true intent of why the government is taking its action in the US, it's, it's hard to say. I think this politics, us trying to uh you know, keep up to the eu laws, I won't go there, right? But what might happen is they may ask Google to stop certain business practices or they might even break up Google into different parts. Yeah.

So it is, it is, it is significant but uh the antitrust laws only applies to each country. So for example, if the US courts say that, OK, we're going to break up Google into constituent companies, this will not affect its operations in, let's say in Singapore or in other parts of the world. So you have to, you have to go to each country's domestic legislation.

So jean, with whatever that's happened. Now, how do you think this will shape the internet space from here? Do you think there will be any change to it?

I think it's gonna be really interesting, right? Because you see, if you put yourself in Google shoes, it's, it's kind of you got the best search engine product, right? So,

and, and you know, the big tree has for decades. Now, the big tree has been Microsoft, Apple and Google. These guys are out to get each other. I mean, none of them are, I don't think any of them are, are, are altruistic, right? This is, this is business. OK? So, I mean, nobody forced Apple to use Google as social engineer, but they did, right? Because it was the only option really. And it's getting money out of it. So now, now they are saying that, well, you know,

the fact that there's no other option stifles competition. I can't, I can't go to a competitor. I can't make my own product better. You know, Microsoft for a long time has been trying to pay money to Apple to be preloaded on safari. But Apple says there's no price that Microsoft could ever offer to preloading. Right? So it is really just

all these three guys fighting each other. Ah, which is good in a way. Uh, there is, there is competition and, and, you know, there's consumer choice. Yeah. But, but I think everybody watching because this is only the first of many antitrust killers to come. There's one on, on Apple. Yeah. Coming up.

Ah, and, and you know, all, all of them have any trust cases.

Yeah.

And it will certainly be an interesting space to watch, for sure. Ah, Jin Li, we will have to end it here, I'm afraid. But thank you for bringing light to this situation to this.

In particular is going to be a big development considering, especially that the US has now found us companies um viable and liable for anti trusts and anti monopoly behavior. So, thank you very much for sharing your thoughts with us this morning. That's Wu Jian Lee. He's a former tech editor and tech industry observer. He's also the founder of Glue Pr.

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