Google Case Study

There have been various types of legislation and regulations passed by the government in order to ensure that harmful monopolies are not created in our society. Three of these important regulations and policies include economic regulation, social regulation, and the antitrust policy. Economic regulation is defined as a “type of government regulation that sets prices or conditions on entry of firms into an industry”. Examples of agencies that are economically regulated include the Federal Communications Commission, the Federal Reserve System, and the Security and Exchange Commission. Social regulations are government-imposed restrictions that are used to discourage or prohibit harmful corporate behavior and are intended to protect the health

Additionally, there are other online companies that compete against Google- including Facebook and Apple- thus placing it in a competitive market as opposed to a monopoly. In the Internet market, the barriers of entry are low, so it wouldn’t be very difficult for one to create their own search engine and essentially “compete” against Google. At once, Google was in its state of infancy, with competitors such as Microsoft and Yahoo, to which they eventually surpassed in terms of users. Google remains victor against its competitors by constantly changing and making updates to its products, thus attracting more consumers and making it unnecessary for the government to intervene. Google serves as the model for a “successful company” since it was born into a market in which there were two big competitors and it eventually surpassed them and bought out various Internet sites. If Google’s success was punished, other companies would be discouraged from growing and competing against other firms in this market since it will not be able to reach the success of Google without various anti-trust policy