Some interesting quotes and articles based on the Google antitrust ruling. First the importance of user data in an article from the NYT: https://lnkd.in/eptJtEuR "At every stage of the search process," Judge Mehta wrote, "user data is a critical input that directly improves quality." "Google’s multibillion-dollar default deals ensured that the company had a huge data advantage in search, the government claimed. It also presented studies in behavioral economics that concluded people rarely switched from the automatic settings, even if doing so was not a daunting technical task. Consumer behavior was not forced but strongly steered by the power of defaults." Next up, the potential impact to Apple and Firefox from Fortune. There's a lot of revenue on the line. https://lnkd.in/e3azEr_m "The ruling immediately prompted speculation about the impact to Apple, which receives as much as $20 billion from Google every year in exchange for putting the search engine front-and-center on its iPhones via the Apple Safari web browser. " "And that’s not the case for another partner of Google’s located in the fallout zone of Monday’s ruling: Mozilla, the non-profit tech org that makes the Firefox web browser. According to the Mozilla Foundation’s 2021-2022 financial statement, which is the most recent published, $510 million out of its $593 million in revenue came courtesy of Google’s search payments." "In court, Google countered that its search engine was the leader because it was a superior product; that data was important but clever software was its real advantage; and that its contracts were deals freely entered into by its industry partners. But Google struggled to credibly explain why it paid so much to get preferred distribution if its search software was clearly the best technology. Those payments made sense, the government insisted, to ensure that Google was the winner, with its monopoly entrenched." And here is Bloomberg about Apple shifting to AI and chatbots. https://lnkd.in/eBEXz2dW "Apple is weaving OpenAI’s ChatGPT capabilities into its software and expects to do the same with Google’s Gemini chatbot. Over time, the company could steer consumers toward AI and Siri instead of the web browser. That would give Apple the opportunity to reach new, nonexclusive agreements with AI providers — including Google — that don’t run afoul of the US government.
user data plays a crucial role in search quality, but the antitrust implications are fascinating as they can reshape alliances. what do you think about these shifting dynamics? Glenn Gabe
Freelance Writer at Self Employed
5moI'm really glad that Microsoft exists right now. Otherwise Google could just monopolize the entire Web and get everyone to act like that's completely normal. And if it takes billions of dollars a year to compete against Google then it's not possible for a VC-backed startup to challenge it.