IncrediMail, Google, Adsense and Powerful Entities (Natural Monoplies)

ImageIncredibleMail is an e-mail client, which produces multimedia emails, screensavers and wall papers. I do remember giving it a try when it initially came out in 1999. It allowed for beautiful “stationary” in the emails, when the the stationary concept was somewhat new.

IncrediMail was in the news yesterday because Google disabled their Adsense account, and since adsense revenues are a significant portion of their total revenue, the market reacted negatively to the news and the stock dived by 41%.

It seems that Google didn’t like IncrediMail’s “opt-in” policy of how the search results were being served to the IncrediMail’s clients. In fact, I see that one of their products, Magnetic, claims “The product offering includes pages generating keyword searches, resulting in revenue for the company.” I can see how this might violate Google’s TOS. IncrediMail doesn’t know exactly why their account was disabled.

And when Google turns off the Adsense account, you not only not get any future revenue, but all the “earned” money gets frozen too, and you permanently lose it.

There is a whole mob complaining about why IncrediMail didn’t prepare for the loss of Google and that they shouldn’t have put all their eggs in the Google basket.

To me it seems that IncrediMail didn’t rely on just one source of revenue- they had three sources:(i) subscription service, (ii) licensing revenues and (iii) Adsense.

I think this is more of an issue with Google. It has become so much more powerful and so much ahead of it’s competitor, that one has no choice but to use them. Google has become defacto monopoly or natural monopoly.

I am not suggesting that Google unfairly cancelled IncrediMail’s account; IncrediMail probably pushed the envelope on serving search engine results without getting full consent of the consumer.

In the current state of Internet web 2.0 environment, one does not have any choice but to rely on Google. You can go with Yahoo or use some other widget, but the results won’t be as good as Google without spending incredible amount of time - so why bother? In fact, till recently, if you used Google Adsense, its TOS prohibited you from having any other ads that provide contextual ad content on the same page.

I agree with an unknown senior executive at Time Warner:

Sometimes I don’t know what to think of Google. We have the best relationship of anyone with Google. On the other hand, you always have to worry when someone gets so much more powerful than all the competition out there. This is why I come down to this: I hope the government starts understanding this power sooner rather than later.

GoogopolyI admit that I have multiple Google/Gmail account. I am sure it is against their TOS and I worry that one day I will turn on my laptop and try to check my mail, and I will get a message “your gmail account has been disabled”. I wouldn’t know for sure as to why it was disabled and I would have no place to turn to get my data. Google doesn’t tell you why it is punishing you - and that scares me!

The one company that I love the most is Google and one company that scares me the most is Google!

We all need to understand the power that Google has.

2 Responses to “IncrediMail, Google, Adsense and Powerful Entities (Natural Monoplies)”

  1. By Jay Lee on Jan 15, 2022 | Reply

    I hate to love google. I use them everyday but it worries me that they have so much information

  2. By Rosa Lee Back on Apr 3, 2021 | Reply

    Oh yes I been try to put Incredvile mail on my computer for over six weeks I gat mad and tuck ever thang of my comprter put it all back still no Incredvile mail so I stop yes I mad at Yahoo,Google and the rest It you and me that want Incredvile mail and I thank we should get Incredvilemail along with are other Email Think you all Over and Out

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