I read a article that Google's aquisition is approved. Recently, the Microsoft, dominant software company, tried to take over Yahoo. And Google, dominant serching company, now try to take over DoubleClick. In the searching service industry, the advertising power is very important. And it decides the market share of the company. Google occupied almost 70 percent of the search market. And the second is Yahoo.
The EU approved Google's extension. Even before that time, EU thoroughly regulated monopoly. But now Google has the rights to occupy the Europe market. On the other hand, Microsoft didn't get approval to merge Yahoo. Microsoft is already a huge and monopolic company in software market. If Microsoft occupy the searching and displaying market, Microsoft can become a supernational company. In America, the antitrust law is very powerful. Then, why the government don't regulate Google? It's because the government admited somewhat monopoly. But they regulate the conglomerate monopoly.
What are advantages of that companies by taking over other internet companies? The article says it's because the share of ad banners. You see everyday ad banners everywhere. And you might think 'Why companies try these things? I think it's wastes of money.' . But actually the influences of that ads are very effective. And that's the reason companies try to influence their share in the ads market like banners. Google's aquisition will bring many powerful influences in search market.
I think the monopoly is the common flow of the world. But excessive monopolies must be regulated by governments or nonprofit organizations. If we could't defend this flows, and someday the basis of capitalism will crumble
20700067 entry 4
reference: http://www.businessweek.com/technology/content/mar2008/tc20080311_855889.htm?chan=innovation_branding_top+stories
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