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Much of modern telecom regulation is about preventing the extension of market power for oligopolistic markets to relatively competitive markets. One method used to do this is bundling two products, one from the former and the other from the latter. Conventional antitrust envisaged both the products being sold for a price, or of one being given “free” with the other. In the case of the flurry of competition-law proceedings around Microsoft, one issue was the bundling of the Explorer browser (available for free download) with the Windows operating system. Finally the consumers are being given an explicit choice at the behest of the European Commission, and they are taking it.
Miguel Helft October 11, 2007, New York Times For more than two years, a large group of engineers at Google have been working in secret on a mobile-phone project. As word of their efforts has trickled out, expectations in the tech world for what has been called the Google phone, or GPhone, have risen, the way they do for Apple loyalists before a speech by Steve Jobs. But the GPhone is not likely to be the second coming of the iPhone and Google’s goals are very different from Apple’s. Google wants to extend its dominance of online advertising to the mobile internet, a small market today but one that is expected to grow rapidly. It hopes to persuade wireless carriers and mobile-phone makers to offer phones based on its software, according to people briefed on the project.