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THE NEXT DIGITAL DECADE ESSAYS ON THE FUTURE OF THE INTERNET Edited by Berin Szoka & Adam Marcus

The Problem of Search Engines as Essential Facilities (Geoffrey A. Manne)

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What is wrong with calls for search neutrality, especially those rooted in the notion of Internet search (or, more accurately, Google, the policy scolds’ bête noir of the day) as an “essential facility,” and necessitating government-mandated access? As others have noted, the basic concept of neutrality in search is, at root, farcical. The idea that a search engine, which offers its users edited access to the most relevant websites based on the search engine’s assessment of the user’s intent, should do so “neutrally” implies that the search engine’s efforts to ensure relevance should be cabined by an almost-limitless range of ancillary concerns. Nevertheless, proponents of this view have begun to adduce increasingly detail-laden and complex arguments in favor of their positions, and the European Commission has even opened a formal investigation into Google’s practices, based largely on various claims that it has systematically denied access to its top search results (in some cases paid results, in others organic results) by competing services, especially vertical search engines. To my knowledge, no one has yet claimed that Google should offer up links to competing general search engines as a remedy for its perceived market foreclosure, but Microsoft’s experience with the “Browser Choice Screen” it has now agreed to offer as a consequence of the European Commission’s successful competition case against the company is not encouraging. These more superficially sophisticated claims are rooted in the notion of Internet search as an “essential facility” – a bottleneck limiting effective competition. These claims, as well as the more fundamental harm-to-competitor claims, are difficult to sustain on any economically-reasonable grounds. To understand this requires some basic understanding of the economics of essential facilities, of Internet search, and of the relevant product markets in which Internet search operates.

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Page 1: The Problem of Search Engines as Essential Facilities (Geoffrey A. Manne)

THE NEXT DIGITAL DECADEESSAYS ON THE FUTURE OF THE INTERNET

Edited by Berin Szoka & Adam Marcus

Page 2: The Problem of Search Engines as Essential Facilities (Geoffrey A. Manne)

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THE NEXT DIGITAL DECADE ESSAYS ON THE FUTURE OF THE INTERNET

!Edited by Berin Szoka & Adam Marcus

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Page 3: The Problem of Search Engines as Essential Facilities (Geoffrey A. Manne)

NextDigitalDecade.com

TechFreedom

techfreedom.org Washington, D.C.

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THE NEXT DIGITAL DECADE: ESSAYS ON THE FUTURE OF THE INTERNET 419

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420 CHAPTER 7: IS SEARCH NOW AN “ESSENTIAL FACILITY?”

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THE NEXT DIGITAL DECADE: ESSAYS ON THE FUTURE OF THE INTERNET 421

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426 CHAPTER 7: IS SEARCH NOW AN “ESSENTIAL FACILITY?”

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THE NEXT DIGITAL DECADE: ESSAYS ON THE FUTURE OF THE INTERNET 427

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428 CHAPTER 7: IS SEARCH NOW AN “ESSENTIAL FACILITY?”

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THE NEXT DIGITAL DECADE: ESSAYS ON THE FUTURE OF THE INTERNET 429

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430 CHAPTER 7: IS SEARCH NOW AN “ESSENTIAL FACILITY?”

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THE NEXT DIGITAL DECADE: ESSAYS ON THE FUTURE OF THE INTERNET 431

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432 CHAPTER 7: IS SEARCH NOW AN “ESSENTIAL FACILITY?”

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THE NEXT DIGITAL DECADE: ESSAYS ON THE FUTURE OF THE INTERNET 433

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434 CHAPTER 7: IS SEARCH NOW AN “ESSENTIAL FACILITY?”

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