ICOMP puts Google 'cost' at $430m a year

 

Microsoft-sponsored group urges more competition in search.

Google's dominant position in search could be costing Australians up to $430 million in "lost time", according to the latest salvo by Microsoft-sponsored lobby ICOMP.

The group filed a submission to the Productivity Commission's retail industry inquiry prepared by economic consultancy ACIL Tasman.

The submission argued that Google had the incentive and ability to reduce the "efficiency of search" in order to drive more business its way.

“We estimate that, if this incentive is acted on and search efficiency is reduced by 10 percent, the annual cost to Australians in terms of lost time would be approximately $430 million,” the report alleged.

ACIL Tasman alleged that about $1.5 billion in gross national product improvements could be had in Australia by improving competition between online search providers.

It was the latest muscle-flexing by ICOMP in a coordinated campaign that has also seen it demand intervention by the consumer watchdog ACCC.

Google this week survived an earlier long-running suit from the ACCC over the distinguishment of sponsored links from organic results.

An ICOMP spokesman declined to comment on the arrangements between it and ACIL Tasman for production of the report, citing "commercial in confidence".

A Google Australia spokesman said the figures seemed hypothetical, drawing an inference of inefficiency because users and marketers were seen as blindly reliant on Google.

The spokesman referred additional questions to a prepared fact sheet that asserted there was nothing that said people had to search Google to get to anything else on the Internet.

"Users can type in a website directly. They can can ask their friends on Facebook. They use Twitter or Amazon and more..," it said.

Meanwhile, Google’s potential abuse of its dominance is being aired in hearings before a US Senate sub-committee.

As one report observed, committee members seemed to agree that Google enjoyed an excessive concentration of market power. However it was less clear what was to be done about it.

Copyright © iTnews.com.au . All rights reserved.


ICOMP puts Google 'cost' at $430m a year
Google logo wide-angle perspective
 
 
 
Top Stories
Can the ATO use IT to shed its old-school reputation?
Inside the ‘reinvention’ at the hands of new management.
 
JB Hi-Fi's new CIO gets 'clean slate' for change
New AusPost, Tabcorp exec to get his hands dirty.
 
 
 
Google logo wide-angle perspective
Sign up to receive iTnews email bulletins
   FOLLOW US...
Latest articles on BIT Latest Articles from BIT
Xero updates Android app
Aug 5, 2015
A new Android version of Xero Touch - the mobile companion app for the Xero cloud accounting ...
The 5 Windows 10 privacy issues you should be aware of
Jul 31, 2015
There are a few unsettling details when it comes to Windows 10 privacy
Windows 10 is here! (For some)
Jul 29, 2015
Delivery of the free upgrade versions of Windows 10 began today - have you got yours yet?
Microsoft reveals Microsoft Send, a new enterprise chat app to rival Slack
Jul 27, 2015
Microsoft Send is MSN Messenger for grownups, and you could be using it at work very soon
Developers offered $500,000 grants to find HoloLens uses
Jul 8, 2015
Can augmented-reality end up in business?
Latest Comments
Polls
Should law enforcement be able to buy and use exploits?



   |   View results
Yes
  14%
 
No
  51%
 
Only in special circumstances
  17%
 
Yes, but with more transparency
  18%
TOTAL VOTES: 842

Vote