Tuesday, September 09, 2008

Google Monopoly Nonsense

On the Google-Yahoo Deal:
The Wall Street Journal reported Monday that a group of major advertisers complained to the department about the deal. The Association of National Advertisers, which represents major advertisers such as Procter & Gamble Co. and General Motors Corp., warned that the deal could lead to higher prices and limited opportunities for Web advertisers.
That is the WSJ, but CNN is picking up the story too. Google's real business is actually advertising, so Procter & Gamble and General Motors must not understand that they would be better off if their competitors' prices started to increase. What they should be worried about is that the Google-Yahoo deal would cause prices to fall, which would be much harder to compete with. Unless...

Hat Tip: Russ Roberts

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