Is Google a monopoly?

[liowkc]

According to some statistics, Google controlled nearly 70% of the US search market and 90% of UK searches. From this angle, clearly Google is a monopoly.

But it lacks 2 characteristics that are usually associated with monopoly:

charging excesively for its products (Google products are practically free)

and

insurmountable barriers of entry for new entrants (new entrants can come into the market and compete with Google)

So what do you think?

[Antster]

Yes it counts as a monopoly, simply because it's virtually the only search engine that people use. As long as people think of Google as being the only search engine worth using, it will be a monopoly.

[hwang]

Well it's an open market. Whether they monopolize or not they still can't overcharge because the effect won't be seen in short term. After all, the characteristics associated with "monopoly" may not exactly points to it. There are bound to some that differ.

[Llamalord]

Just in the same sense microsoft is a monopoly lol. Good old super corps

[hwang]

Well in this case Microsoft is far different cause it is overcharging and forcing consumers to switch to use their new vista version by ending support for the older versions. I think Microsoft is the classic example of a *real* monopoly.

[Antster]

Yes, I suppose Google isn't a proper monopoly because they can't charge.
And, I agree, Microsoft is one of those company's that abuse their monopoly status, making it the 'real' monopoly you were talking about.

[Llamalord]

They charge for use of adsense (as in to host your site on a ad) and lets face it, if your on adsense then you dont need to worry about much else.

[hwang]

Well adsense nowadays are facing stiff competition. Although none can still get close to them at the moment but I see Adbrite has a future ahead. It could be a very good competitor to match google someday so Google has to be wary.

[liowkc]

Perhaps the classical economics definition of monopoly power doesn't apply but I do sense of the great power of google, monopoly or no monopoly. And it scares me.