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Eric K. Clemons

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Does Google Deliberately Engage in Deceptive Practices? Maybe and Maybe Not

Posted: 09/19/11 01:30 PM ET

Google has frequently been accused of search bias, that is, of presenting its search results in an unfair and subjective order. What does that mean? And why should anyone care?

What is search engine bias?

In one sense bias truly is the essence of any good search engine. This is Google's argument and the argument of many of its defenders. Bias simply means placing some websites ahead of others, which of course is a geometric necessity, since only one website can be first, or second, or third. Google also argues, correctly, that deciding who should be first is the very essence of a good search engine, and the sites that are ranked second, or forty-second, are going to claim that they are victims of bias. This seems to be more accurately seen as a definition of website ranking.

Let's define ranking bias, or simply bias, as follows:

Search Bias is the arbitrary ranking of websites to advance the search engine provider's own commercial interests. Bias can take many forms: (1) providing preferential treatment for a site owned by the search engine provider; (2) providing preferential treatment for a site commercially aligned with the search engine provider as an advertiser or in some other way; (3) lowering the ranking of a site that competes with the search engine provider in any of its businesses; or (4) lowering the ranking of a site that has complained about the search engine provider's business practices, or provides news coverage of an event that the search engine provider would prefer not to have publicized.
What does search engine bias look like?

We have come to accept some forms of bias. We expect paid search to be biased in favor of successful bidders; otherwise why would anyone pay for keywords? We expect paid search not to be too biased in favor of bidders, otherwise why would anyone trust sponsored sites on the top of the search list? Google has balanced the pressure for bias, but not for too much bias, by combining a site's bid and the site's quality score. The bid and quality score yield a combined ranking score, which is called rank by relevance by Google and called rank by revenue by other analysts. A site that has an overall quality score ten times higher than a competing site would presumably need to bid only 10% as much to have an equal combined ranking score. Under rank by relevance, the higher quality site is given a lower price for the top spot, since it is the spot most desired by consumers. Alternatively but equivalently, under rank by revenue the higher quality site once again is given a lower price for the top, because doing so is most profitable for Google. And yet, an inferior site, one that sells counterfeit, defective, or expired products, should have much lower product costs and much higher gross profits per click, and therefore might be able to bid far more for a top spot. When this happens an inferior site becomes more profitable for Google, and is allowed to buy the top.

At some price per click bids from each, Google should be indifferent between the two websites; should we be indifferent as well? The recent Non-Prosecution agreement, the $500 million settlement, and the scandal over Larry Page's involvement all suggest that Google's interests and those of the larger public may not be fully aligned in paid search.

Consumers do not expect deliberate manipulation of search order when reporting the results of organic (free) search, which would make bias of organic search both deceptive and commercially effective. Manipulation of organic search order would include altering rankings through any mechanism, manual or algorithmic, to advance Google's own business interests. There are numerous factors that would need to be assessed to determine if Google's secret black box algorithms are fair or not, including a determination of what fair would mean, and including a determination of what Google actually does. Ben Edelman of Harvard shows data that he believes demonstrates bias; Danny Sullivan of SearchEnglineLand disagrees. Without seeing inside Google's algorithms it's hard to be sure, although there is currently ongoing litigation in the EU that alleges deliberate manipulation to advance Google's own offerings. Other forms of bias are harder to detect. What if Google advances the ranking of websites that have large numbers of ads on them? What if Google allows websites to increase in organic ranking because they have increased in total hits, which can be strongly influenced by their visibility in paid ranking? This last practice would be a strong incentive to pay for keywords, simply to (indirectly) increase ranking in organic search.

We simply don't know. We have allegations and litigation, but we simply don't know if Google search is unfairly manipulated. Again, why should we care? Wright and Manne are quite explicit -- they are not concerned with manipulation unless one can clearly demonstrate harm to consumers.

When is search engine bias a deceptive practice, harmful to consumers?

The manipulation of paid search has the potential to be harmful to consumers. There is a large body of literature that suggests that prominent advertising is indeed assumed by many consumers to be an indication of quality. A provider that features on the top of Google search may therefore be seen as a high quality provider by many consumers. Surely a high ranking in paid search must be credible to and must influence the behavior of a large number of consumers, since if this were not true then selling keywords would not succeed as Google's principle source of revenue.

Misrepresentation or bias in organic search is likely to be most damaging to consumers, in large measure because consumers have come to expect neutrality in organic search. Indeed, they have been promised such neutrality. This is promised as the first of ten things listed in Google's own statement of its mission and its guiding principles:

1. Focus on the user and all else will follow.

Since the beginning, we've focused on providing the best user experience possible. Whether we're designing a new Internet browser or a new tweak to the look of the homepage, we take great care to ensure that they will ultimately serve you, rather than our own internal goal or bottom line. ... Placement in search results is never sold to anyone ...

Admittedly giving something to yourself in organic search, or demoting a competitor in organic search, does not violate the precise wording of the paragraph above, but it surely violates my reading of it.

Isn't this just normal business practice?

Suppose Google is found to promote its own services ahead of services from others, promoting YouTube videos ahead of those from other video services and demoting competitors like Foundem. Suppose Google is found to punish firms that compete directly with it, or that complain about its business practices1. Why is this a problem? Everyone knows that if you want an executive program from the Harvard Business School, the Wharton School, or a conference from the Financial Times you go to their websites; everyone knows that you do not learn about a Wharton program at a Harvard website. Why is this any different? Why should Google be the place to learn about competitors' browsers, video services, or Cloud offerings?

First, in some sense Google comes close to being a common carrier, although it is not yet regulated as one. With near-monopoly power in search, it should have obligations to provide some degree of neutrality. This is strengthened by consumers' expectations of neutrality. Most importantly, if consumers have been promised fair search and are not getting it, this is deceptive. If this increases consumer costs or decreases consumer choice, or if it increases sellers' costs in a way that is passed on to consumers, then consumer harm results. Is bias automatically self-correcting?

Is it impossible for bias to exist or to continue when choice is one-click away? For a variety of theoretical reasons we would expect that search bias is almost certainly not self-correcting unless it becomes extreme. Surely Google understands this, and surely Google constantly tests for and monitors consumer acceptance. There is a range of reasons why consumers might not detect or react to significant and potentially harmful search bias. This is addressed more fully by Oren Bracha and Frank Pasquale.

Consumers would need to know that what they were getting was demonstrably inferior, and often they do not. Google search is seldom so blatantly biased as to be obvious. If consumers get something adequate, and they do not know the full range of choices, they may not detect that something better is missing.

There is a constant drumbeat of posts claiming that if Google search were biased then it would be demonstrably inferior, and if it were demonstrably inferior then Google would fail. The historical record in a range of other commercial search sites, from Sabre and Apollo in the 1980s to hotels.com more recently, suggests that this is not true.

Summary -- What should the Subcommittee ask Eric Schmidt?

Clearly, the manipulation of search could be harmful to consumers. Could is a very wimpy word to use before a hearing, but hearings come before investigations, investigations precede any litigation, and litigation precedes any findings of fact or findings of law. The point of the Subcommittee Hearings and the FTC investigation are to determine if there is reason to believe that consumers have been harmed.

I would want to see the following questions addressed in Eric Schmidt's testimony:

  • To what extent does Google monitor consumers' understanding of Google's business practices? Is there a reason why the purchased spots on the top of the pages were originally labeled "sponsored links" rather than "ads"? If so, was it because consumers trusted sponsored links more, because at the time they did not know that they had been purchased? Do consumers always know when a spot has been purchased today? Is this true of purchased spots in the middle of the page, or of spots on maps? Will this be true of mobile messages sent to consumers in response to contextual cues like texting friends about dinner?
  • Do consumers know that search is not really free to them? Do they understand the value of the information that they are disclosing about themselves to Google, and the compensation that they could receive for that information elsewhere? Do they care?
  • Under Google's rank by revenue business model it is indeed possible for inferior sites to achieve high placement if they are willing to pay enough; this occurs even if Google is aware of the sites' low quality score. To what extent is Google aware of the possibility of direct and immediate consumer harm? To what extent does Google take steps to ensure that no truly harmful or truly dangerous entity is allowed to bid its way into a prominent spot?
  • To what extent does Google actually preference its own businesses? To what extent might this harm competitors' ability to compete, now or in the future?
  • As Google and the rest of the search industry moves beyond 10 blue links and begins to offer their own retailing sites, the prospects for preferencing their own sites becomes greater, and more dangerous. I have already written about the potential danger of Bing's travel site. With Google's much larger market share, the recent launch of its own travel site poses potentially far greater risks to competitors, to airlines, to competition in air travel bookings, and ultimately to consumers. How will Google ensure fair competition in travel bookings?
Demonstrating harm to consumers is essential to demonstrating the need for government action. The mere assertion of the possibility of harm is not sufficient to justify legal or regulatory intervention. However, the potential for harm cannot simply be dismissed without more information.

1For example, Copiepresse, which represents Belgian newspapers, complained about Google's use of their content and found that they were no longer listed in Google search at all. The resulting loss of traffic eventually led them to cooperate.

 
 
 
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03:04 PM on 09/21/2011
Wait a second. How does "Placement in search results is never sold to anyone" align with search term bids? How is that not selling placement in search results?
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HUFFPOST SUPER USER
Chaton de Malheur
History will not be kind to Conservatives
08:12 AM on 09/21/2011
It's obvious to me that Google has made drastic changes in retrieving and presenting information. There was a time when you could easily connect with other people discussing esoteric topics by turning over an obscure reference in a comment forum from eight years ago. Now Google puts results from their pet cash cows near the top of the list, page after page, even when the reference doesn't quite match what was entered for the search. You have to go 20 pages deep to get to "real" results, and even then, they're peppered over repetitive links to their money-makers.

I deeply resent having the internet hijacked in this manner. There needs to be a main public search engine, uncensored and unfiltered by any criterion not chosen by the searcher, that will turn up anything and everything. Non-commercial access to information over the net is every bit as important as our national network of libraries. By purchasing a rank in search results, a company is usurping the searcher's prerogative in getting to the information they actually want. This practice is despicable because there is no way for the searcher to opt out. This practice IS DECEPTIVE because no distinction is made between a purchased ranking and an "organic" ranking. The company purchasing top placement is pretending that it would naturally appear where it does in your search results. The more purchased placements there are in your search results, the more FAKE your search is.
03:16 PM on 09/21/2011
The problem is that any search site needs to be profitable, unless it is run by the government, which is a REALLY bad idea.

Even if it were a non-profit, it would need to make enough money to maintain it's servers and pay it's employees, as well as R&D to keep their search algorithms relevant. How can they make money?

It could be a pay site, but really, how many people will pay for something that is free elsewhere? Most people really don't see the problem with Google.

They could sell ads that were obviously ads (no deception), but what companies are going to do that when they can pay Google, who is much more popular, to slip their ads in deceptively?

While I agree with your sentiment, I just don't see a way out of it.
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durant
Editor & publisher of Europeforvisitors.com
05:29 PM on 09/20/2011
Let's not confuse promoting one's own content with "engaging in deceptive practices." There's nothing remotely deceptive about Google's displaying a Google Map or a YouTube listing on its pages. As for the notion that Google "comes close to being a common carrier," that's hardly the case in the United States, where Microsoft's Bing has been nibbling away at Google's market share and now controls about 30 percent of the search market.
10:25 AM on 09/20/2011
I think the real issue here is that the people using search are not the consumers. Google's product is advertising, so the consumers who we need to know if they are being harmed are the purchasers of advertising.
09:01 AM on 09/20/2011
It's important to recognize that it isn't simply a matter of bias in the ordering of the ol' "ten blue links," but rather potentially an ongoing campaign to alter search page layouts to tilt away from third party content and in favor of Google "owned and operated" properties. Examples here would include YouTube; a wide variety of content related to Google Places (local search); including third-party reviews vs. reviews written on Google; travel search; etc. If you check Google's financials, they are doing relatively poorly with their ongoing efforts to realize revenues from advertising partnerships with third parties, and of late they have been doing quite well with their "owned & operated properties" (and always have, given that they take home roughly 100% of the revenue there). Might this motivate a bias in long-term planning and what Google does or not display in search results? Certainly. Is it illegal? I don't know. What should people ask Google in the hearings? They should ask about the extent to which Google's research into possible new verticals/markets was aided by their access to private data collected via Google Search, Google AdWords, and Google Analytics, essentially a better-than-fair means of spying on future competitors, while claiming good faith as their vendor or partner in the past.
11:44 PM on 09/20/2011
Nice comment. Yes, the move away from 10 blue lines to preferencing of Google sites is interesting. When Sabre preferenced American Airlines' flights and Apollo preferenced United's sites this got both regulatory attention and attention from the courts. I have posted on why I think this kind of preferencing is dangerous from Google or Bing ... and it should be more dangerous from Google if only because Google's share is larger. Is it manipulative? Sure. Is it deceptive? That depends on what Google has promised consumers and on what consumers believe. Is it illegal? That depends on a lot of things that have not been established yet ... ranging from deceptive practices covered by the FTC Act / Section 5 and intent to monopolize covered by the Sherman Act / Section 2. We don't know. That's why there are hearings and investigations.
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HUFFPOST SUPER USER
signgrrl
typeface geek
08:36 AM on 09/20/2011
i never google, i always ask dot com. ask does not save your searches and sell them to whoever wants them.
02:05 PM on 09/19/2011
Google's Eric Schmidt along with a Stanford Computer Science professor Sebastian Thrun had involved into crimes which had endangered human lives. Schmidt and Thrun's side had murdered Stanford student May Zhou and they had plotted a murder on me as well, during their fight with Stanford to threaten me and to terrorize Stanford people. Schmidt and Thrun had not paid for their crimes so far. But this case is regarding to people's lives, and when it regards to people's lives, there should not be any compromise nor any dubious or obscure points left.

more details Look-inside-dumbfounded [ http://tysurl.com/BsEnQ4 ] ...and it did happen as Eric Schmidt predicted so far, that police did not find out who murdered Stanford student May Zhou [ http://www.mayzhou.com ], which is very scary ... Schmidt side told me: if they can't win the case at judicial authorities, they could take my life as easy as getting rid of a bug ... it is problems in Stanford Computer Science Department with their Professor Sebastian Thrun's case that led to May Zhou's death ... who actually setup order in Stanford Computer Science Department? ... Thrun, Schmidt, Scheler, and Thrun's bosses in Stanford Computer Science departmet are all in debt to Stanford student May Zhou's death.

--- An unheard of sandal in history of college education.

When I disclosed his crimes, Eric Schmidt ran out of grounds and publicly sent me life threatening message [ http://tysurl.com/dsyyGp ]
02:11 PM on 09/19/2011
Eric Schmidt is being publicly disgraced.while dare not deny any accusations above to the public. Eric Schmidt has not but would have to pay for his debt in these crimes.
08:04 AM on 09/20/2011
These comments are over the top. I am interested in knowing the details of their operations so i can assess the presence or absence of deception. But these seem like personal attacks on their Chairman and I do not endorse this.