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European Governments Force Google to Introduce “Choice Menu”

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The US is after Google also

As the Justice Department continues with its antitrust investigation on Google, focusing on the search giants’ dominance in the online advertising industry, the European counterpart has compelled some changes that will set regulatory precedent.

Phone users in Europe have, for the first time in many years, been presented with a menu option that allows them to choose other search companies as their default search engines. The choice menu has become a feature of new Android phones and devices running on Google software.

In 2018, the European authorities ruled that Google abused its dominance in smartphone software and gave itself undue advantage over competitors. Based on the ruling, the search giant is trying to make amends by developing new devices with new features that allow users to use search choices other than Google. But that has brewed more trouble for the Silicon giants.

The attention of the United States Justice Department has been drawn to it, and it appears ready to get Google to do the same in the US. The Justice Department is reportedly preparing a big antitrust battle with Google this summer. It is said to be one of the biggest monopoly actions taken by the United States in years.

Google has been a company of interest in Europe and the United States over the years. Since last year, the Justice Department and state attorneys generals have been investigating the company’s web practices, especially on web search and ads. Google has a huge influence when it comes to the internet. It controls about 90% of online searches and receives one-third of every dollar spent on online ads according to New York Times.

The call to break Google up over its dominance as it tends to muzzle competition has been voluminous for years, and it appears the European governments have opened a chance for the Department of Justice (DOJ) to pursue a legal challenge against the company’s influence.

But experts believe that following Europe’s line of action will do Google no harm.

“It doesn’t seem like too much of an imposition on Google’s business model, while opening the floodgates to competition a bit. The fact that Europe has gone first gives the D.O.J a benefit to see how it’s working,” said Michael Carrier, a law professor at Rutgers University Law School.

In 2018, Google was fined a record €4.34 billion with a demand that it stops its anti-competitive practices. Though the company is appealing the ruling, altering power of default to allow other companies on devices using its operating system seems like a win for Europe.

Google’s search accounts for almost 100 percent of Android smartphones and the company is paying Apple billions of dollars to be the default search choice on iphones.

In 2001, the US government and Microsoft ended their long fought antitrust battle on the decision requiring the company to alter some of its default software to allow users to switch to applications of their choice. That included allowing users of the Microsoft Windows to use browsers other than explorer.

In 2006, Google told antitrust officials that Microsoft should give Internet Explorer users a choice of another default search engine when starting the browser. And that set a precedent that has come to hunt Google right now.

But it is not the first time Google is getting caught in the controversy of monopoly. In 2017, the company and the Russian Federal Antimonopoly Service agreed, as part of settlement, that it will update its chrome browser in Android phones so that users can have choice of using other search engines as default.

Though Google has agreed to alter its default software to accommodate other companies, its terms and conditions have become a challenge that many have found unacceptable. The internet giant is limiting the number of non-Google search engines to three in any country. It is also forcing interested companies to participate in quarterly auctions to decide how much they will pay to be featured.

Gabriel Weinberg, chief executive of DuckDuckGo, said even though he sees the preference menu as a good way to increase competition, Google’s tactic is unfair to small businesses and consumers: “pay-to-play auction is bad consumers (and competition), Google knows how to work the system and consumers lose in the end,” he said.

For now, the big players in the game appear not interested in the auction, and that leaves Google and small companies like DuckDuckGo in the play. And it’s not clear if European governments are going to do something about the pattern the company has employed to administer the choice menu.

Understand How To Grow Your Business In U.S. And Establish Business in America

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Dawn Malotane-Lindsey, a South African who now lives in the U.S., runs a family company Vari-Tek LLC. In Tekedia Mini-MBA, Dawn will share knowledge and experiences on how to prepare for doing business with American companies and for establishing business in the U.S. for African immigrants.

Join Dawn, the President of Vari-Tek LLC and an immigrant like most of us, in our program, as she educates on how to find that opportunity in beautiful America.

America is a fascinating country. The first dozen people I hired for my firm came from free U.S. support (yes, excess scholarship money while in school) and when I finished, the U.S. Government through USAID wrote me a cheque. It was magical because I spoke just for 7 minutes for them to fund Zenvus.

Come over and let us co-learn and co-share experiences to advance the mission; REGISTER.

https://www.tekedia.com/mini-mba-2/

Scaling A Business And Marginal Cost Impact [Video]

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This week we are looking at marginal cost and profitable scaling in Tekedia Mini-MBA. This is the introduction video for Week 18. There are four more videos in the Digital Board for members including some modelling on things discussed in this video. Interested in the next edition? Register here for the next edition which begins June 22.

 

Week 18 Session

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Notes:  The Written Material has been updated; there is no material difference except formatting issues and numbering of a figure. Apologies for the mix-up during upload. The first edition of Tekedia Mini-MBA will come to a close on June 10th. We will share a video here on Wednesday on the certificate issuance process for those […]

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CEO of Infoprive To Lead Cybersecurity Session In Tekedia Mini-MBA

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He was formerly the Divisional Head, IT Infrastructure & Enterprise Security at Interswitch Limited, the pioneering transaction switching and electronic payment processing company in Africa. A graduate of Obafemi Awolowo University, he holds CRISC, CISM, COBIT and ISO27001 certifications. 

Adetokunbo Omotosho, CEO of Infoprive, a leading cybersecurity company, will lead the Cybersecurity session of the second edition of Tekedia Mini-MBA. Infoprive provides digital security for top leading banks, fintechs, airlines and more, across Africa and the Middle East. Some of its customers include Air Arabia, Venture Garden Group and Flutterwave.

Adetokunbo managed the first Payment Card Industry Data Security Standard (PCI DSS) compliance in Nigeria and is a respected leader in the broad digital security domain. Attend his session by joining us here.

https://www.tekedia.com/mini-mba-2/