The respectable LSE professor Willem Buiter has ‘taken up’ the debate on regulating search and is all in favor. In fact, he proposes to regulate Google (not search), and more precisely to break it up and put it out of business if possible.

I must say that I do like his style of writing and I agree that Google’s treatment of privacy and copyright are important issues to discuss. But unfortunately, the content of the essay is not all of high quality: it’s a kind of Google bashing that could ultimately do more harm than good, because the debate about Google in Europe needs economists like Buiter to explain what’s going on or even better to lay out a vision for the policies and laws of the future.
Copyright and theft
I have a particular problem with Buiter’s claims about copyright and Google. He claims that some of Google’s services are (or should be) illegal under copyright law:
Google has been making available copyrighted material for download on its websites for years (books through Google Books, music through YouTube, newspaper material through Google News), often without obtaining prior consent of the copyright holder and generally without making any payments to the copyright holders. There is a word for that kind of behaviour: theft. Just because you steal using internet technology does not make it anything other than theft. As an author, this naturally concerns me.
It’s hard to defend that YouTube is illegal altogether, simply because users can upload infringing videos. In addition, Youtube is more and more positioning itself as a partner for the audiovisual industry, because it seems need them to monetize the service. It would be helpful to get an economic perspective on that.
The Google Book Search scanning program is more complicated. From Buiter, one would expect an analysis of the public welfare benefits of a comprehensive full-text book search service.
Finally, the word ‘theft’ obfuscates the nature of the protection of intellectual labor through legally enforced monopolies for a period of time. This protection can hardly be called property. It’s not unfair to profit from each others intellectual work. The whole idea of copyright protection is to make it profitable for society as a whole. A university professor and successful author should know that.
With these superficial remarks Buiter does not add anything to the debate about copyright and Google, other than his name and some exaggerated qualifications in defense of an industry that opposes change but should be looking for answers instead. His claims are normative without economic foundation. If anything, the news, music and publishing industry probably need the platforms provided by companies like Google and Yahoo to retain some control over consumption of creative products.
Privacy
Buiter’s complaints about privacy and the importance of default settings are more to the point. He is rightly concerned about the unprecedented collection of user data by companies like Google and Yahoo and the access to that information by government agencies. But I dislike and distrust his reference to the maltreatment of copyright in this context. Politically, these issues are of a completely different nature.
Can we trust Google not to abuse the information they collect? Of course not. This is a profit-seeking company. Its owners, CEO and top managers are typical amoral capitalists who want to make as much money as they can without ending up in jail. Their ruthless, unethical behaviour as regards copyright, Of course we cannot trust them. They must be regulated and restrained by law so we can sleep at ease even though we know we cannot trust them.
I do agree that Google and others should develop an anonymous search experience and use an opt-in for their behavioral targeting program because I think that access to information and ideas should remain free (as in freedom). But default settings are hard to regulate, as an economist should know, because there are so many different products and services, default settings are part of the innovation, it’s partly a matter of technological design and legally speaking contractual freedom poses a hurdle to reckon with. It’s to simple to compare this with H-bombs. This is precisely the type of ‘do no evil’ engineering ethics that makes it harder and not easier to debate the real issues.
Buiter’s opt-out?
Buiter finishes his rant by claiming that he will start deleting everything from Google. Maybe he should also ask the FT to remove his blog from Google search (by adding its directory to this file), remove his website and publications, and tell his agent to stop advertising his speaker qualities through Adwords. Or maybe Google does offer something valuable? I hope Buiter will reconsider and come up with some more realistic proposals.
(sidenote: I took the first part of the title from a reaction to his article at the FT site.)