2020年10月20日 星期二

On Tech: Why the government is suing Google

Maybe all Google needed to keep from acting like a monopoly was more effective government oversight.

Why the government is suing Google

Ruru Kuo

The U.S. government sued Google on Tuesday claiming that the company is an illegal monopoly. My colleagues called it “the government’s most significant legal challenge to a tech company’s market power in a generation.”

This legal case is going to be loud, confusing and will most likely drag on for years. More confusing lawsuits against Google from U.S. states are probably coming, too. What will be most important to remember are the big questions at the heart of this: Does Google break the rules to stay on top? And if so, does that hurt all of us?

So, yes, this is about politics and legal minutiae, but ultimately this case boils down to whether the technology that we use could be better, and whether the American economy could be more fair.

And through all this drama, I have a lingering question: Is the government suing Google because the government itself wasn’t doing its job?

All of the activity that the Justice Department now says is evidence of Google maintaining an illegal monopoly over search and search advertising has been known for years and could possibly have led to a crackdown by agencies like the U.S. Federal Trade Commission and the Justice Department. Those agencies are responsible for keeping watch on companies for signs of potentially abusive behavior.

ADVERTISEMENT

And yet, under both Democratic and Republican presidents in recent years, Google faced few substantive government enforcement actions for anything it did that made the company stronger and harder to unseat. If you let your kid act up again and again without consequences, should you be surprised that it keeps happening?

In Tuesday’s lawsuit, the Justice Department accused Google of shutting out rivals through tactics like paying phone companies and others to ensure that Google’s web search engine has a prominent position on Android smartphones and on iPhones. This behavior, the government lawsuit said, holds back competition that could make better products for all of us.

But this activity hasn’t been a hush-hush conspiracy cooked up in underground bunkers at Google headquarters.

We’ve known for years that Google pays Apple billions of dollars each year to make sure its search engine is the one that people encounter on their iPhones and in the Safari web browser. It’s not a secret that Google had contracts with phone companies that required them to include Google apps on smartphones and make its search engine practically inescapable.

ADVERTISEMENT

The European Union’s antitrust regulators fined Google over similar tactics in 2018. The E.U. required changes to Google’s behavior, although some competitors have said they are ineffective.

Reading the U.S. government’s lawsuit, I was mostly left wondering why it’s happening now. Almost all the substantive allegations about Google abusing its power could have been made — and were — years ago. The E.U. case, which started in 2015, dredged up very similar facts.

Novelty is not required to prove that Google is an illegal monopoly, of course. But still, if the lawsuit is treading on familiar ground, why did it take so long?

And again, could the F.T.C. or the Justice Department have stepped in to ask hard questions about this behavior before now? Would that have slowed Google and prevented the need for a Big Bang and risky lawsuit to try to change what the company does? (Google said on Tuesday that the government’s lawsuit is “deeply flawed,” and that people use its online services because they choose to.)

ADVERTISEMENT

There are, to be sure, complex legal questions involved here. The government can’t just declare that Google stop doing stuff like this just because it makes the company stronger. But I do wonder if more effective oversight by every corner of the government in the last decade would have done with less fuss what this antitrust lawsuit is trying to do — kept Google from tilting the game to its advantage.

In recent conclusions of a congressional investigation into the power of big technology companies, lawmakers who normally disagree about everything did agree on one thing: America’s antitrust watchdogs have fallen down on the job. (To be fair, Congress should shoulder part of the burden here. It writes the laws that dictate what the F.T.C. and Department of Justice do, and it sets their budgets.)

House members said that the F.T.C. and others too often left unchallenged Big Tech’s pattern of getting more powerful by acquiring competitors, and that the agencies did not crack down when these companies broke the law and their word. I couldn’t agree more.

For one small example, look at what happened in 2013. The F.T.C. said that it was getting harder for people to tell the difference between regular web search results and paid web links on Google’s search engine. This risked hurting both those trying to use the site, and companies that had no choice but to spend more money with Google to get noticed.

The F.T.C. urged Google and others to make it more clear when people were seeing web search results rather than paid links.

What happened since that warning in 2013? Not very much. If anything, it’s gotten even more difficult to tell Google’s ads from everything else.

That’s one small example, and that activity wasn’t highlighted in the Justice Department lawsuit against Google. But it shows that big companies — if their behavior is unchecked — will continue to test the limits of their power.

For more from my colleagues: Steve Lohr explains what you need to know about the lawsuit against Google. And Brian X. Chen writes about how Google’s changes over the years have kept us in the company’s infinite loop.

If you don’t already get this newsletter in your inbox, please sign up here.

Before we go …

  • If you’re getting a new iPhone, do not buy it because of 5G: Brian X. Chen, the New York Times consumer technology columnist, said the new iPhone 12 is a “solid upgrade” from past Apple models. But the phones are pricey, and people should not buy one expecting to be wowed by 5G, the latest wireless internet technology that is a big marketing pitch for the new iPhones.5G, simply, is a mess,” Brian wrote. “At this point, it should not be the primary reason to splurge on an expensive handset in a pandemic-induced recession.”
  • The job of election officials now includes fighting internet garbage: Colorado election officials are fighting back against false information about voting in unusual ways, my colleagues Nick Corasaniti and Davey Alba reported. They have said they would buy internet ads to pop up if people search Google about bogus rumors, and the state set up a disinformation fighting team led by a former U.S. counterterrorism official.
  • Maybe don’t take the advice of “MeRich4259”: Fake reviews on Amazon have been a problem for a while, but Bloomberg News reported that about 42 percent of 720 million Amazon product reviews in a recent analysis were suspicious — and the share has increased as people have shopped online more in the pandemic.

Hugs to this

We want to hear from you. Tell us what you think of this newsletter and what else you’d like us to explore. You can reach us at ontech@nytimes.com.

If you don’t already get this newsletter in your inbox, please sign up here.

Need help? Review our newsletter help page or contact us for assistance.

You received this email because you signed up for On Tech with Shira Ovide from The New York Times.

To stop receiving these emails, unsubscribe or manage your email preferences.

Subscribe to The Times

Connect with us on:

facebooktwitterinstagram

Change Your EmailPrivacy PolicyContact UsCalifornia Notices

The New York Times Company. 620 Eighth Avenue New York, NY 10018

Let’s not get serious

Deficits aren’t a threat, and never were.
Jacquelyn Martin/Associated Press

Today’s column was about the case for large-scale deficit spending if we get a Democratic president and Senate. As I said in the column, it was mainly about the economics; the political discussion will come later, maybe Friday, depending on how many outrageous and horrible things happen over the next couple of days. But I thought I could use this newsletter to get a bit ahead of the curve.

So let me tell you what worries me about the prospects for doing the right thing economically.

One possibility is that Trump beats the odds and wins, or at least gets within stealing range. If that happens, however, macroeconomics is going to be the least of our problems.

Another, more likely possibility is that Republicans hold the Senate. In that case the G.O.P. will simply sabotage Biden every way it can. I know that sounds harsh, but does anyone really doubt it?

But even if Democrats take both the White House and the Senate, they’ll face a problem: the Very Serious People will surely reappear.

Who are the VSPs? I think I stole the term from the blogger Atrios, who used it to describe all the influential people who thought it was sensible to support the Iraq War because all the other influential people were supporting it. In economics, the VSPs became critically important — and destructive — in the aftermath of the 2008 financial crisis.

ADVERTISEMENT

Here’s what happened: When the housing bubble burst, leading not just to a plunge in home building but a slide in private spending across the board, the economy was in desperate need of fiscal support; because the private sector wasn’t willing to spend, it was essential that the public sector pick up the slack. But this meant running budget deficits — and in 2010 or thereabouts it somehow became conventional wisdom that debt and deficits were a huge threat, far more important than mass unemployment.

Where did this conventional wisdom come from? Not from the markets, which showed no concern whatsoever about U.S. solvency. Not from the math, which didn’t suggest any problem with running large deficits for multiple years. Not from history: advanced countries like Britain for much of the 20th century and Japan for much of the 21st so far saw debt exceed 150 percent of GDP without experiencing any kind of crisis.

But going on about debt, talking about the need to make tough choices, sounded serious and hardheaded. It sounded even more serious because all the other serious-sounding people were saying the same thing.

Oh, and obvious phonies like Paul Ryan, who pretended to care about deficits when all they really wanted was to cut social programs and hobble President Obama, were treated with great respect.

ADVERTISEMENT

As far as I can tell, it’s now almost universally agreed that the result of all this seriousness was a premature withdrawal of government support that greatly slowed economic recovery. But let me tell you, those of us arguing against the deficit obsession in real time felt pretty isolated.

So now we’re in another crisis, and once again we desperately need to maintain government spending despite big deficit numbers. Will we actually do what needs to be done?

It’s a given that Republicans, who ignored deficits under Trump, will proclaim imminent economic doom. Nothing can be done about that.

What’s still unclear is how centrists and the news media will react. Last time around they went all in on deficit panic, lionizing those who spread it. Will they do it again?

ADVERTISEMENT

To be fair, much of the reporting I’m seeing looks much better than what we went through in 2010-11. On the other hand, I’m still seeing a fair bit of giving credit where it isn’t due, with news reports saying things like “Republicans are concerned about budget deficits.” Dear colleagues in the news media: you don’t know that. You only know that Republicans claim to be concerned about deficits, and there is in fact very good reason to believe that they’re hypocrites whose only goal is to undermine Biden.

So, will the elite get serious about the budget deficits we’re likely to see in the months and maybe years ahead? Let’s hope not.

Quick Hits

Not in Britain, apparently.

How Very Serious People set the stage for Brexit.

Republicans ready to hate deficits again.

Feedback

If you’re enjoying what you’re reading, please consider recommending it to friends. They can sign up here. If you want to share your thoughts on an item in this week’s newsletter or on the newsletter in general, please email me at krugman-newsletter@nytimes.com.

Facing the Music

Not about Joe BidenYouTube

No, no, I meant infrastructure.

IN THE TIMES

Need help? Review our newsletter help page or contact us for assistance.

You received this email because you signed up for Paul Krugman from The New York Times.

To stop receiving these emails, unsubscribe or manage your email preferences.

Subscribe to The Times

Connect with us on:

facebooktwitterinstagram

Change Your EmailPrivacy PolicyContact UsCalifornia Notices

The New York Times Company. 620 Eighth Avenue New York, NY 10018