Google

Google

Introduction

Google Incorporation is an American corporation which is a multinational corporation founded by Sergey Brim and Larry Page. Google has made its mark over the years by specializing itself in internet related products and services. These services and products include online and software advertising technologies, searching and cloud computing. Google was founded in the year 1998. Its main headquarter is located in California, United States of America. Google became a dominant firm and has remained a dominant firm till now. According to the Net market share, Google is the leading search engine in the world on comparative basis. This can be proved by looking at the figures that shows that search traffic and its global share of Google is around 85% whereas Bing and Yahoo have 4% and 7% respectively. However, for this reason and others, antitrust authorities have placed Google under investigations for some reasons. So now Google the most dominant firm has been up for the investigations. The EU Competition Commission is the most cutting edge to inhale vigorously down its neck. Google has never been suspected for a scandal or a crime but this time around, if Google's market behavior is analyzed especially its display and search model of advertising, it can be concluded that such investigations are most welcome. It is because the whole world needs to find out the truth whether Google is abusing other market powers by dominating them illegally or not.

Discussion

In the year 2010, Google had been successful in earning 28 billion dollars on advertising only (David, 2009) as advertising on an online platform is one of the fastest growing businesses in the world. Different companies working on online advertising are earning around 600 billion dollars on the recognition of their brand through online advertising. According to the financial table of Google, they earned 23% more in 2010 than what they earned in 2009. This is not a normal figure to be considered and therefore for this type of a boom in profits for Google, antitrust authorities have been on high alert as it attracted their attention and are now worrying for the dominance of Google in the online market for advertising. The European Commission in the year 2010, started off with an examination on potential misuses concerning the particular treatment for Google benefits in its search engine that is free, the control of the estimating framework for the supported connections, and restrictiveness provisions or different limitations for publicists utilizing Google administrations. Further complaints have also been put forward in front of the Italian, US and German. This was done to protect unfair competition placed by Google for the content providers and other publishers in the market.

The French rivalry power has additionally done an interview finishing up in December 2010 that "Google holds a predominant position on the publicizing market interfaced to search engines" and that "rivalry law can apply points of confinement to Google's activities and give a reaction to the intense stakes carried to light by the performing artists, ...