[simonh]

The thing with network effects is that we the users benefit if all the other users (or a majority of them anyway) are on the same system. The answer isn't to force diversity because that just imposes costs and inconvenience on users just as much as it hurts providers.

In a sense in a situation like this you can consider the customer to be essentially all of us as a group. Therefore as a group it makes sense for us to negotiate terms with the service provider, hence I think there's a reasonable role for government to regulate. After all our elected representatives are there to do exactly that - represent us and our interests.

Honestly I would prefer minimal or no regulatory intervention. I don't think the degree of any harm being done currently is sufficient to make imposing regulation worth the risks of getting those regulations wrong and making things worse for users. I think the degree of any current abuses are relatively trivial from a user perspective, however I do accept the basic principle that regulation may be necessary and appropriate, and companies like google need to know that and act accordingly.

In reality I'm a Brit and these are mainly US companies, so it's mainly up to you guys, but I'm sure the EU and other governments, should look at this.