heisje - 10:35 am on Jun 19, 2010 (gmt 0)

I belong to those who have grave concerns regarding monopolies, and the dominant position of Google in particular. I belong to those who would welcome viable competition under any circumstances, and in this respect any legitimate moves from Google's competitors are well received.

However, there is a fundamental fallacy in labeling the creation of a strong duopoly (Google on one side and Yahoo + Bing on the other side) as an advance in competition. Much sooner than later, these two dominating poles in the market will find an equilibrium among themselves, and they will take us all for a *really good* ride.

1.- Substantial revenue share *reduction* (percentage-wise) comes to mind (re: AdSense, etc) even if there is a temporary upward improvement before matters start going (gradually but steadily) south.

2.- Substantial ad cost *increase* (re: AdWords, etc), even if there is a temporary downward improvement before matters start going (gradually but steadily) up, up and away.

3.- Substantial involvement in eccommerce, in multiple and innovative forms, grabbing a large percentage of consumer & business revenue.

All of us (excluding non-profits) are constantly looking for ways of monetizing to the max. our sites - so what makes you think that G and (Y+B) think otherwise? The two market poles will collude eventually, they will partition the market and create a mutually advantageous profit boom for themselves you have never seen before. This is what lingers in their dirty little minds & plans, oh you "little guy" - not bleeding each other to death by competition!

Now, go on celebrating . . . .


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