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How free is free? Speech vs. beer at the Googleplex

Business IT - Technology

In a recent whitepaper he writes "Google also has a highly developed strategy to foreclose competition by forcing the commoditization of current and potential search complement products/services. Under the ostensible cover of 'innovation,' Google funds a host of free search complement products/services that are designed to either commoditize the complement, drive competitors out of business, or force them into the Google 'partnership' orbit. 

"Tellingly, Google makes little effort to monetize these services that are often released in beta, with little interest or effort expended in making these products/services profitable. The most obvious predatory price in competition is free, especially when the price remains free indefinitely with no plans to turn these products/services into revenue producing units. Pro-competitive 'loss leaders' eventually lead to revenues and profits. There is precious little business effort by Google on this front. Why would a company continually innovate and indefinitely cross-subsidize products/services that have real costs – for free -- unless the real motive is to foreclose competition?

"More specifically, Google is expending surplus market power to create an adjacent 360° noprofit zone around Google by predatory free pricing and cross-subsidization of search complement products/services like: Checkout, Google Health, Android, YouTube, Blogger, Reader, News, Earth, Desktop, Calendar, Docs, Gmail, Social networking, photos, Translate, GOOG-411 etc."

The final comment rests with Bottin Cartographes' lawyer, Jean-David Scemama; "Google is ruining the market, their strategy is to capture the market and squeeze out the competition by creating a monopoly for itself."

I guess that would make sense if they could find a way to extract copious amounts of revenue from the products once the competitors were gone, but as Dana Wagner noted earlier, that's going to be neither easy or likely.

Google Australia declined iTWire's request to comment on this story.