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
ATO investigates 25 tech giants in tax hunt
Prepared to take tax evaders to court.
 
Immigration, Customs restructure IT leadership
Customs CIO promoted into transformation role.
 
NBN Co begins FTTB rollout
Will bring service to 6000 apartments.
 
 
Google logo wide-angle perspective
Sign up to receive iTnews email bulletins
   FOLLOW US...
Latest articles on BIT Latest Articles from BIT
Franchisees, here's something you should know about
Jan 23, 2015
You need to know the Code if you are a franchisee or franchisor as the penalties are significant.
Xero users rejoice! Quoting has finally arrived
Jan 23, 2015
It has taken years, but Xero has at last added integrated quoting to its online accounting software.
You can now get a no-contract wi-fi tablet from Telstra
Jan 17, 2015
Telstra has began selling wi-fi tablets out of contract without paying extra for cellular ...
Get your business ready for 2015: mobile payments
Jan 2, 2015
These handy apps from MYOB, Xero and others can reduce your administrative load and improve ...
Xero prepares for key feature coming in 2015
Dec 19, 2014
Xero users will be able to track how their business is comparing to other Xero users.
Latest Comments
Polls
Who do you trust most to protect your private data?







   |   View results
Your bank
  36%
 
Your insurance company
  5%
 
A technology company (Google, Facebook et al)
  9%
 
Your telco, ISP or utility
  8%
 
A retailer (Coles, Woolworths et al)
  4%
 
A Federal Government agency (ATO, Centrelink etc)
  18%
 
An Australian law enforcement agency (AFP, ASIO et al)
  14%
 
A State Government agency (Health dept, etc)
  7%
TOTAL VOTES: 2927

Vote
Do you support the abolition of the Office of the Information Commissioner?

   |   View results
I support shutting down the OAIC.
  27%
 
I DON'T support shutting the OAIC.
  73%
TOTAL VOTES: 908

Vote