Category: Menacing Monopoly

Defaults matter, and Google executives know it. That’s why they’re fine with shelling out massive sums to other companies to keep their near-monopoly on search intact.

Alphabet Inc.’s Google pays billions of dollars each year to Apple Inc., Samsung Electronics Co. and other telecom giants to illegally maintain its spot as the No. 1 search engine, the US Justice Department told a federal judge Thursday.

DOJ attorney Kenneth Dintzer didn’t disclose how much Google spends to be the default search engine on most browsers and all US mobile phones, but described the payments as “enormous numbers.”

“Google invests billions in defaults, knowing people won’t change them,” Dintzer told Judge Amit Mehta during a hearing in Washington that marked the first major face-off in the case and drew top DOJ antitrust officials and Nebraska’s attorney general among the spectators. “They are buying default exclusivity because defaults matter a lot.”

It is amazing to hear these statements coming from the U.S. Department of Justice. For years, the European Union (EU) was pretty much alone in investigating and discipling Google for its bad behavior. But finally, after decades of doing mostly nothing, the U.S. government is suing Google. It’s long overdue and extremely welcome.

Privacy and security aren’t just ideas to pay lip service to in Denmark. They really matter.

Denmark is effectively banning Google’s services in schools, after officials in the municipality of Helsingør were last year ordered to carry out a risk assessment around the processing of personal data by Google.

In a verdict published last week, Denmark’s data protection agency, Datatilsynet, revealed that data processing involving students using Google’s cloud-based Workspace software suite — which includes Gmail, Google Docs, Calendar, and Google Drive — “does not meet the requirements” of the European Union’s GDPR data privacy regulations.

Specifically, the authority found that the data processor agreement — or Google’s terms and conditions —  seemingly allow for data to be transferred to other countries for the purpose of providing support, even though the data is ordinarily stored in one of Google’s EU datacenters.

Google claims that “students’ data is never used for advertising or other commercial purposes,” but such claims have been incorrect before. And ultimately, what matters to the authorities in Europe is whether, as TechCrunch put it, compliance with the GDPR and other laws is “watertight.”

Required reading:

The one U.S. tech company that’s partnered more than any other over the last 10 years with Vladimir Putin’s censorship machine is the one that adopted the early slogan “Don’t be evil” – Google and its YouTube unit.

Google has provided substantially more user data to the Russian government and censored far more content than Apple, Facebook, Microsoft or Twitter at the request of Kremlin departments.

Following Russia’s invasion of Ukraine last week, U.S. tech giants have stopped providing some services to Russians. Apple ceased product sales, Google cut Russians off from advertising revenues, and both removed Russian news outlet RT from their app stores, as did Microsoft.

Still, digital rights groups are calling on U.S. tech firms to go even further and stop censoring content in response to Kremlin requests, which has been a precondition for doing business in Russia. None of the biggest – Apple, Google, Facebook or Twitter – responded immediately to Forbes’ requests for comment.

It’s just good business … well, at least until geopolitical conditions change and it’s not so good anymore.

Just as Apple is really into China, Google seems to be really into Russia. Its YouTube platform is quite popular with Russians, and Google likes that. But, of course, operating in a market like Russia means having to do what the Kremlin says. And acceding to the demands of a dictator and warmonger like Vladimir Putin is evil and immoral.

So if Google doesn’t want to be evil, it’s going to have to change its position.

This is an unexpected, striking, and welcome development:

More than 80 fact checking organizations are calling on YouTube to address what they say is rampant misinformation on the platform.

In a letter to CEO Susan Wojcicki published Wednesday, the groups say the Google-owned video platform is “one of the major conduits of online disinformation and misinformation worldwide.” 

YouTube’s efforts to address the problem, they say, are proving insufficient.

“What we do not see is much effort by YouTube to implement policies that address the problem,” the letter says. “On the contrary, YouTube is allowing its platform to be weaponized by unscrupulous actors to manipulate and exploit others, and to organize and fundraise themselves.” 

Wow! Talk about speaking truth to power… this is a truly impressive collective action. Good on these fact checking groups! It’s not so easy to call a spade a spade when it belongs to one of the world’s largest and most profitable tech giants. But that is precisely what they’ve done.

And what a great characterization of the problem… “allowing its platform to be weaponized by unscrupulous actors.” That is, indeed, what is going on here, and it’s important that be recognized. YouTube’s algorithms are notorious for dragging users down conspiracy theory rabbit holes. If you watch one flat earth video, YouTube will recommend a bunch more to you. Because YouTube’s proprietors want you to spend all day — or at least as much of your day as you are willing to give up — consuming content. The more you stream, the better. And if you get exposed to disinformation along the way, well, that’s just a cost of doing business, isn’t it?

Just shameful:

Russian opposition activists said Google had taken down videos and documents they were using to organize a protest vote in this weekend’s elections, the latest sign of rising pressure from the Kremlin on American internet giants.

The actions by Google in response to government demands involved blocking access inside Russia to several YouTube and Google Docs links being used by allies of the imprisoned opposition leader Aleksei A. Navalny to coordinate protest voting in each of the country’s 225 electoral districts, said the activists, members of Mr. Navalny’s team. On Friday, Google and Apple removed the activist group’s protest-voting app after Russian officials threatened to prosecute the American companies’ employees inside the country.

Google did not immediately respond on Sunday to a request for comment.

Apple, of course, did it too.

It just goes to show that powerful Silicon Valley companies cannot be trusted to stand up for their users against authoritarian governments like those in Russia or China. They fold because the bottom line is more important than people’s rights and freedoms. And because they’re afraid of the power those regimes have over their operations beyond U.S. shores.

Protecting your privacy isn’t the only reason not to install Google Chrome:

Short story: Google Chrome installs something called Keystone on your computer, which nefariously hides itself from Activity Monitor[1] and makes your whole computer slow even when Chrome isn’t running. Deleting Chrome and Keystone makes your computer way, way faster, all the time. Click here for instructions.

Long story: I noticed my brand new 16″ MacBook Pro started acting sluggishly doing even trivial things like scrolling. Activity Monitor showed *nothing* from Google using the CPU, but WindowServer was taking ~80%, which is abnormally high (it should use <10% normally).

Big, big props to Loren Brichter for making this website and thoroughly documenting this issue. 

Loren is a former Apple employee who created Tweetie and Letterpress earlier this century. There is a Wikipedia entry with more information about him, written from somewhat of a fan perspective.

Will the United States Department of Justice blow its opportunity to hold the Monster of Mountain View accountable for its domineering, monopolistic business practices? That’s a concern that many people both inside and outside of the DoJ have, as this New York Times story documents.

The Justice Department plans to bring an antitrust case against Google as soon as this month, after Attorney General William P. Barr overruled career lawyers who said they needed more time to build a strong case against one of the world’s wealthiest, most formidable technology companies, according to five people briefed on internal department conversations.

Justice Department officials told lawyers involved in the antitrust inquiry into Alphabet, the parent company of Google and YouTube, to wrap up their work by the end of September, according to three of the people. Most of the 40-odd lawyers who had been working on the investigation opposed the deadline. Some said they would not sign the complaint, and several of them left the case this summer.

Trump and Barr’s inappropriate politicization of the Department of Justice and their desire to use it as a vehicle to drive positive coverage for Trump’s reelection campaign could significantly hurt the case’s chances of success. State attorneys general are also interested in holding Google accountable, but many fear the DoJ is on the verge of sabotaging its own chance at a major antitrust legal victory, and thus may not be inclined to join in the action, whenever it ends up being filed.

Never seen a company willing to take on both Google and Apple before simultaneously… this is really something.

Epic Games has filed suit against Google over alleged antitrust violations, just hours after seeing Fortnite dropped from the both the Google Play Store and iOS App store and filing a similar lawsuit against Apple. Epic’s complaint alleges that Google’s payment restrictions on the Play Store constitute a monopoly, and thus a violation of both the Sherman Act and California’s Cartwright Act.

Epic’s hit game Fortnite was removed from the Google Play Store earlier today.

Where the Apple complaint opened with a description of the company’s iconic 1984 ad, Epic’s complaint against Google focuses on that company’s now-infamous “Don’t Be Evil” mantra. “Twenty-two years later, Google has relegated its motto to nearly an afterthought,” the complaint alleges, “and is using its size to do evil upon competitors, innovators, customers, and users in a slew of markets it has grown to monopolize.”

Quite right. Quite right.

We have long had a category here on GW called “Menacing Monopoly” (which this post is filed under), and it’s very fitting that Epic is calling this behavior out for everyone to see. We wish them the best with their suit and hope that it leads to a future in which many app stores become available for both iOS and Android…. or else public regulation over the stores currently controlled by Apple and Google.