Reuters is reporting that with the recent news of the Yahoo and Google deal Senator Herb Kohl from Milwaukee has promised that he will look deeply into the deal because there are competitive/monopoly problems. Here is his statement:
“Democratic Sen. Herb Kohl of Wisconsin said the deal between Google and Yahoo “raises significant competition concerns.”
“The consequences for advertisers and consumers could be far-reaching and warrant careful review, and we plan to investigate the competitive and privacy implications of this deal further in the Antitrust Subcommittee,” Kohl said in a statement.”
The rest can be found here.
Of course, the Public Choice perspective can be found in this article by Bloomberg.com. Microsoft is saying that this will violate Anti-Trust laws and it just so happens that it was them that was also bidding for Yahoo and lost. Go figure!
Tell me where does a search engine really hurt consumers? That is the point of Anti-Trust regulation, right? We do not get charged when we search. Not one penny.
The argument is then made that it hurts the businesses trying to advertise that Google will be able to charge whatever price it wants. Wrong! Businesses will just go to other search engines and put Google out of business. If you cut their revenue their search engines will suffer and a competitor like MSN or Dogpile will be able to pick up the slack.
Senator Kohl go back to your own monopoly the NBA, where you own the Bucks. If I wanted to build an NBA team in Milwaukee to compete with yours would the NBA let me? No! I would have to be approved and probably denied because of cutting into your revenue.
The government is the only thing that grants monopolies and Senator, you have one in your backyard!