The Harm Caused by the Google Monopoly to the Economy

Monopoly comes from a Greek word mónos meaning single. This occurs in scenarios where only one supplier delivers goods and services to the market (Mansfield, 2015). Monopoly power thus is the ‘long hand’ monopolists have in dominating the marketplace.

Google Monopoly

It is an honest opinion that Google as a monopoly is harmful to the market, especially for it competitors. Google has been fined $2.7 Billion in E.U. for wrongfully using its platform to benefit itself. In Google Shopping, Google has been able to utilize this means in marketing its own products. The only problem is that it has done so and kicked other competitors out of the competition. An example of how is when searching; at least the first three pages searched will contain Google ads. Meaning that other competitors can be found from the fourth page and so forth. It is a compulsory rule to compete on merits in Europe. This has seen Google getting a large sum in fines for using uncommon grounds for competition.

Monopoly Power and How They Harm the Economy

Monopoly powers affect the economy in many different ways. All these ways are those that affect the economy negatively. If an economy is run under a monopoly then the company gets to control the prices by itself. There is no competition existent in the marketplace meaning whichever price set by the company will be the price customers will have to pay. If a client knew there was an option to choose from, they would choose the one they feel comfortable with. In the same weight, if the company had competition, they would strive to match their competitors or do better. If only one company produced goods and services to their entire market, then there would be no use in quality development since it is the only product available. The customers have no choice but to purchase what is provided for in the market. Monopolies accumulate profits and power very fast. They may use this to gather more power for themselves and even use it to influence politics and policymaking. The company might as well decide to limit their supply of goods and services without any severe repercussions.

Permission of Some Degree of Monopoly

Under certain conditions and scenarios, monopoly power can be beneficial to the society. However, these situations and durations are very clearly defined. Monopolies may be beneficial because of their ability to produce using less, much lesser than competitors in the same specialties. These monopolies need proper regulation from governments that take stern measures so that the people can actually benefit from these monopolies (Melvin, 2015). Remember that monopolies are mainly focused on their prices so keeping them on guard and offering them incentives might help with the production and distribution of the needed products. Government-granted monopolies such as patents and trademarks offer opportunities for creative works from entrepreneurs, innovators, composers and the likes. This actually creates something to strive for in a monopolistic setup. This comes with incentives and opportunities for people from different walks of life to work on their expertise while gaining needed experience. These, being monopolies, have to be for limited while as well while offering good services while they last.

Conclusion

Monopoly power has its benefits and its disadvantages. It is important to understand when and when not to use such structures. For companies with much exposure and market dominance like Google, it is important to know and understand proper rules and regulations to avoid penalties and fines as in the case of Google.