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Reasons and sources of

Google’s monopoly
1. Heavy investment required :- The users of search engine will use a search
engine on the basis of :-
- The quality of the results
- The speed of the result
- Freshness of the result
For a search engine to encompass all these parameters is a very cost consuming
task. Which will take around billions of investment. Explosive investment would be
required by a competing search engine to come at par with google. Another search
engine can be made which can compete with google with less cost, google refreshes
its 10 billion web pages monthly, the other search engine can do that every 6 months
which will save a lot cost.

2. Maturity of technology :- Almost all the web technology and internet


technology like web servers, etc. have been relatively well developed. There
is no scope for farther inventions and discoveries in this field, so that makes it
very difficult to enter the market with an innovation or new invention .
Even if any search engine comes up with a useful new invention, due to the
size of the web it will take time to spread all over the web and until then google
will catch up and sabotage your success.

3. Operations data:- Google is based on innovation made by cofounders Brin


and Page, and there are patents on these innovations and these patents
contribute to Google’s monopoly.
These innovations are augmented from accumulated data, they are
accumulated from day to day working of google system. A competitor with
same level of technology and server will still take a lot of time to accumulated
such amount of data that google has and it will take it years to catch up with
google.

4. Economies of scale:- Google has more than twice the size of traffic to its
nearest competitor and five times the traffic from its second nearest
competitor.
And as the traffic is so huge google enjoys economies of scale, as more the
number of traffic more will be the income and less will be the cost and the cost
decreases with increase in volume.
5. Tracking data:- Google has this tracking data with which what it can do is,
that it can totally avoid spamming which will increase the quality of its search
and will increase the productivity of the search. Tracking data also allows
google to control its click-frauds, which others wise affects its AdSens system.
This advantage allows Google to achieve a higher level of automation and
therefore lower per-partner-site cost in managing its AdSense advertising
partners.

6. Google’s anticompetitive practices :- Google uses manual censoring which


suppresses access by its users to competitive services such as directories.
Search results that show towards small business directories are heavily
suppressed by google.
Its is also used by google to suppress other competitive websites which
compete with google activities in other fields.

7. Declining captive audiences :- Many MSN users use MSN just because it is
by default built in, but those users who don’t want beginner features and
would want advance features high performance will always opt for google. A
mature user always opts for google instead of using the built in MSN or
internet explorer. This will ultimately increase Google’s share in the market.

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