Thoughts on Tech, Deals, and Markets

Thwarted Google-Killer

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TradeComet.com, which runs a tiny B2B search engine, SourceTool.com, is suing Google for “starving” them of traffic by raising their AdWords CPC prices from $.05-.10 to $5-10.  The Bloomberg article says that the price increase was to “protect Google’s monopoly and prop up a partner Web site for business searches.”  It’s laughable to think that Google actually targeted a site of SourceTool.com’s size.  100b market cap companies have bigger fish to fry.

But it’s indicative of what I think will be an important trend–Google’s near-monopolistic power over a huge market will attract growing legal scrutiny, and eventually the DOJ will break it up.

On that note, I wonder if the recession will catalyze civil litigation, particularly troubled businesses suing healthy ones.  I have no data on the topic, but it seems intuitive in the same way that global economic downturns historically lead to trade wars.

Written by sandykory

February 18, 2009 at 7:20 am

Posted in Uncategorized

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