Google is a dangerous monopoly -- more than Microsoft ever was

Steven Christopher
Economics Article 3/22/11

Joe Wilcox starts in the article talking about Google’s search and advertising dominance and perceptions about the company’s growth. He explains that the sudden realization of Google’s monopoly started two years ago, starting with invention of the Google DoubleClick. Apparently, with the introduction of this new product came the significant boost that Google needed to start abusing power. Google controls the large majority of products in many areas, such as browsers, mobile operating systems, and advertisement. Through different developments, Google has made a monopoly, created an oligopoly, and a monopolistic competition.
This article proclaims that Google is the world’s largest monopoly. A monopoly is defined as a single seller with complete control over an industry. “The US Justice Department went after Microsoft in May 1998 out of fear the company would become the Internet’s gatekeeper. That never happened with Microsoft, but it most certainly is occurring with Google. Its business is all about profiting from information.” (Wilcox) Here, Wilcox clearly explains that Google controls the information online, and they are profiting off of it so well, they are able to keep all competition away. Google will always control the vast majority of information because of its browsers, such as the Chrome browser and mobile browsers.
Google reaches the level of monopolistic competition with its retail trade in operating systems for personal devices. A Monopolistic competition is defined as a market structure in which there are many sellers supplying good that are close, but not perfect, substitutes. In such a market, each firm can exercise some effect on its product’s price. “The Android mobile operating system was released in 2009, which sales rose 961 percent year over year in 2009.” (Wilcox) The Android mobile operating system showed that although there were other products on the market, the Android phones were the best substitutes to other phones. Google recently released a new operating system for mobile phones and net books called Chrome OS. With this introduction, Google swiftly became the leading supplier. Google clearly has the vast control over the market. “Google has erected a mobile applications stack, by leveraging together Android, Chrome, disparate Google Web applications and search services.” (Wilcox). Google is a market structure they supplies good, that are not perfect, but substitutes to other operating systems, and web browsers.
Oligopoly is defined as a situation of imperfect competition in which an industry is dominated by a small number of suppliers. In this article Wilcox proves that Google is a dominating industry. Google is one of few industries that control the ability to produce an operating system and browser. Google is also one of the few industries that control a large majority of E-books. “Google negotiated making millions of books freely available online via Google search.” (Wilcox). This is a demonstration of power that clearly indicates that Google is one of the few companies that controls this industry. Google has the resources, influence, and power to make these developments possible and impossible for other companies.
The Google corporation controls and influences information, operating systems, browsers, and new age technology. In recent years it is clear that Google has become a great monopoly, caused an oligopoly, and created a Monopolistic competition. Although the cooperation is liked and respected by most people, it is starting to hurt other businesses and corporations in specific areas because they cannot compete with Google. “Google is a dangerous monopoly. Being a monopoly isn't illegal in the United States, although in Europe it seemingly is so.” (Wilcox) Monopolies like Google need to have a boundary which does not allow them to take control, and push companies out of competition.

http://www.betanews.com/joewilcox/article/Google-is-a-dangerous-monopoly-more-than
Wilcox, Joe. "Google Is a Dangerous Monopoly -- More than Microsoft Ever Was Betanews." Betanews Technology News and IT Business Intelligence. Web. 22 Mar. 2011. .