Google is complaining to antitrust officials in Washington and Europe that Microsoft's upcoming web browser puts Google at a competitive disadvantage. That's because the browser features a search box on a user's screen that steers the user to Microsoft's MSN search engine.
Google is playing politics here. Microsoft's MSN handles only about 10 percent of Internet searches in the US compared to Google's 50 percent. As long as users continue to prefer Google, they'll type it into their browser or make Google their home page regardless of what Microsoft does. If there's anyone who doesn't know how to take these simple steps, Google has enough money to let them know. Its advertising budget is immense.
We're not talking about a little startup company that's about to be run over by the Microsoft goliath. Google is more than able to take care of itself in the market. It doesn't need antitrust police protection. Google's first-quarter revenues were $2.25 billion. It's already part of the Standard and Poor's 500 stock index.
That Google is complaining about Microsoft's upcoming browser to antitrust officials on two continents shows how important politics has become to the competitive strategies of America's major hi-tech firms. Once upon a time they competed on the basis of who offered consumers the best products. They're still pumping out cool stuff, but now they're also paying armies of Washington lawyers and lobbyists to try to outmaneuver each other on the playing fields of regulation and litigation.
Google increased its spending on outside lawyers and lobbyists by more than half a million dollars last year, and is investing like mad in political advisers, consultants, and government-affairs professionals on K Street and in Brussels. Microsoft is well-represented in these dens of political iniquity, too, as is Yahoo. But Microsoft has already been bruised by American antitrust actions and is now in trouble with European antitrust authorities. Google probably figures a little saber-rattling in Washington and Brussels is a cheap way to reduce Microsoft's natural aggressiveness.
Google had better be careful when it raises the specter of antitrust. Google is now a big boy on the block. Its own strategy of adding all sorts of software features to its free web-based service that carries advertising may well be discouraging many startup software companies. They're not big enough to make money from ads. So they won't jump into the market for fear a version of their product will be offered for free by Google.
In fact, Google's free software strategy bears a striking resemblance to Microsoft's practice of bundling free software features into its Windows operating system. That also discouraged startups who rightfully feared Microsoft would steal away their markets. And look at the trouble Microsoft got itself into.
It doesn't matter how many lobbyists and lawyers Google hires. As Google becomes the dominant operating system of the Internet it could find itself in the same antitrust hot water Microsoft -- whose Windows is the dominant operating system of personal computing -- has found itself in.
Message to Google: Be careful when you turn to the antitrust police. You could be hoisted on your own free-software petard.
Robert B. Reich is co-founder of The American Prospect. A version of this column originally appeared on Marketplace.
