DOES GOOGLE HAVE COMPETITION? DYNAMICS OF THE HIGH TECHNOLOGY MARKETS Google is especially known for its search business, In fact, many people now say they "googled it" when explaining that they searched the Internet for information on a particular subject. Google's market share of the search markets is estimated to be about 75 percent in the United States and an even higher 90 percent in Europe. In fact, many argue that this level of market share gives Google an effective monopoly in these markets. Of course, this level of market share has given Google significant power with advertisers and customers, power which the firm can use against its competitors. For example, the Federal Trade Commission (FTC) in the United States has stated that Google has pressured sites such as Yelp, TripAdvisor, and even Amazon to allow it to obtain information on users of their sites. Additionally, the FTC argued that Google has prevented advertisers from placing advertisements on other search engines. But, the FTC also stated that Google had violated no laws. Google's two largest rivals in the search business are Bing and Yahoo, both of which have about 12+ percent of the market. Yet, with continuing changes at other Internet-based com- panies, firms such as Amazon and Facebook Google may become important search market rivals in the near future by changing the focus of online shop- pers. These companies now compete for advertis- ers in a number of markets Google is much more than a search business. It has entered many mar- rexphotostwo497914 kets and is doing research on and/or preparing to enter many more markets. For example, Google recently opened its first Google retail shop in London and plans to open several more. The intent is to compete, at least partially, with Apple's successful retail stores. In another service market, Google recently introduced Android Pay as a competitive response to Apple Pay and Samsung Pay (also in response to Apple's service product). Google has introduced a new flight search tool, Google Flights, that helps customers find the best (including cheapest) airplane flights. This new ser- vice competes with several such services but especially with its large rival Expedia (originally started by Microsoft) which acquired Travelocity and Orbitz (two major competitors) in 2015. Google has also recently entered several other new markets, such as the insurance search market (e.g., for the best auto insurance), and is offering wireless connection to the Internet competing with large telecommunications providers AT&T and Verizon. It is also planning en- tries in the smartphone and smartwatch markets. The smartwatch product is being developed in an alliance with TAG Heuer and Intel. The Google prototype smartphone will operate with a core product and multiple components. It will be similar to a Lego product where a customer can change screens such as adding a large screen to watch a major sporting event (e.g., the Super Bowl). Of course, these smartphone and smartwatch products will compete directly with Apple products and other companies as well. Thus, Google competes in many markets and with multiple rivals. In some markets, Google dominates such as information search. But in other markets, it is a new entrant with a small market share competing against established and major companies (e.g., airline flight search and wireless Internet services). In some markets, Google is a primary actor (e.g., search) offer- ing major new services, and in other markets, it is a responder (e.g., Android Pay). As a result, Google's competitive actions are exceedingly complex with competitive dynamics across multiple markets and competitors