Google’s Larry Page took the reins after a decade of “adult supervision” for Google under Eric Schmidt, as the outgoing CEO called it. The switch comes as mobile gadgets are redefining the way people use the Internet and Google’s main ad business is under threat from fast-growing upstarts such as Facebook and Groupon. Page has yet to make his battle plan public, but industry insiders and analysts expect he will try to shore up Google’s strength in search and mobile while breaking into a red-hot social networking market that has eluded his company.
Successful childrens’ books publisher Nicholas Callaway believes paper is dead and that digital has come of age, writes Mark Egan. But Callaway isn’t worried that big publishing houses will eat his lunch. “They don’t understand the new medium, they don’t have the rights, they don’t know how to create the product and they don’t know how to get it out to the world,” Callaway told Egan. January e-book sales more than doubled from the same month a year earlier, rising 116 percent to $69.9 million, according to the Association of American Publishers. That topped sales of hardcover books, which fell 11 percent from January 2010 to $49.1 million.
The hunted became the hunter when Microsoft filed its first-ever complaint to antitrust regulators, claiming that Google thwarts Internet search competition. Thomas Vinje, who led a coalition that won EU fines against Microsoft said the software maker “has learned from its own unpleasant experiences how to cause maximum disruption for its competitors via competition law”. Google controls over 90 percent of the Internet search advertising market in Europe, well ahead of Microsoft’s Bing. And browsers such as Firefox and Google’s Chrome have eaten away at the market lead by Microsoft’s Internet Explorer.
Google launched “+1″, its version of Facebook’s “like” button, enabling you to publicly share search results that you fancy with friends, the Web and advertisers. Google found that including +1 recommendations on ads boosted the rates at which people click on them. Eventually, Google plans to let third-party websites feature +1 buttons directly on their own pages, the company said. The ability to +1 ads and for that endorsment to appear on ads on websites other than Google’s is key, writes TechCrunch’s MG Siegler, and another volley fired in the war between Google and Facebook.
Amazon.com faced a backlash from the music industry after it introduced Cloud Drive, an online “music locker” that lets customers store music files on the company’s Web servers instead of their own hard drives and play them over an Internet connection directly from browsers and on phones running Google’s Android OS. Sony Music was upset by Amazon’s decision to launch the service without new licenses for music streaming.
EBay said it will buy e-commerce service provider GSI Commerce for $1.96 billion in cash to build up its online marketplaces, as it ramps up its battle with Amazon.com. GSI is attractive to eBay because of its expertise in taking customer orders, managing them and filling them, which also happens to be an area of strength for Amazon. GSI, which owns Web businesses such as Rue La La and ShopRunner, also provides retailers such as Aeropostale and TJX’s Marshalls chains with technology, payment processing and customer care services for their e-commerce sites.
Retailers risk losing the majority of mobile device users unless they make mobile shopping easier and more engaging, writes Jessica Woh. While 89.7 percent of Americans aged 18 to 64 have mobile phones, only 49.1 percent use their phones to shop, according to marketing service Arc Worldwide. Consumers who use mobile phones to shop are able to compare prices on the go and are seen as less likely to make impulse buy, Woh adds.
Research In Motion’s quarterly net profit jumped 32 percent, boosted by strong global BlackBerry smartphone sales. But a weaker-than-expected outlook as it spent heavily on the launch of its PlayBook tablet next month, sent RIM’s shares tumbling after the bell.
Apple said top software engineer Bertrand Serlet will leave the Mac computer maker after more than a decade spent developing its signature operating system, Mac OS X. Craig Federighi, currently the vice president of Mac Software Engineering, will take over from Serlet and report to CEO Steve Jobs, Apple said in a statement.
Amazon.com opened its store for Google Android smartphone applications, ratcheting up its fight with Apple after the iPhone maker sued Amazon in a bid to stop the online retailer from improperly using its App Store trademark.