Google Business Model: Users are the Product, Not the Customer
I found a very interesting article by Nathan Newman, written for the Huffington Post that address how Google operates it’s business model and the reasons for an anti-trust investigation. The article “You’re Not Google’s Customer – You’re the Product: Antitrust in a Web 2.0 World” addresses how Google collects person information from users of their “free” products – Google.com, Gmail, Google Apps, Android, Chrome, Chrome OS, Google TV – and uses it increase their internet advertising monopoly.
He argues that the business model it to create free products which attract users to their devices to grow their ability to collect data and target ads. While the vast majority users don’t read the privacy policies on websites, or may not even know how to locate them, they should be concerned. He lays out why in the article.
Using this model of Ad supported products they have managed to destroy entire markets for this type of software by giving it away to users, and have made it nearly impossible for any type of competition to challenge them. Google talks about innovation, but their business model stifles or prevents new competition in certain areas. So when the competition is stifled what’s the motivation for them to continue to innovate? Nathan explains why regulators need to address these issues and other issues with Google.



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