Tim Vanderhook, former CEO of MySpace, today shared a detailed account of how Google allegedly contributed to the demise of the once-dominant social networking platform. In a LinkedIn post, Vanderhook outlined a series of strategic moves by Google that he claims systematically dismantled MySpace's market position in the mid-2000s.
MySpace, which rose to prominence in the early 2000s, became the world's largest website in 2006. Its success was largely attributed to its strong presence in the music industry, with licensing agreements from all four major record labels for music videos and streaming audio. The platform also hosted over 40 million songs from unlicensed artists, making it a launching pad for emerging musicians.
According to Vanderhook, Google's acquisition of YouTube in late 2006 marked the beginning of MySpace's decline. By integrating YouTube into its ecosystem and securing music video licenses, Google positioned YouTube as a direct competitor to MySpace's music stronghold. This move effectively challenged MySpace's dominance in the online music space.
Vanderhook alleges that Google's control over search traffic played a crucial role in MySpace's downfall. He claims that Google manipulated search results to prioritize its own properties, including YouTube, over competitors. This manipulation allegedly directed traffic away from MySpace, significantly impacting its visibility and user engagement.
The acquisition of DoubleClick by Google further exacerbated the situation, according to Vanderhook. He suggests that this acquisition allowed Google to redirect advertising dollars and traffic away from MySpace, further diminishing its online presence.
In 2011, Google launched Google Plus, its own social networking platform. Vanderhook points out that Google integrated Google Plus with its other services, including YouTube, Gmail, and search. This integration allegedly led to an artificial boost in Google Plus's visibility and user base. Within weeks of its launch, Google Plus reportedly gained 10 million users, and by the end of 2011, it had amassed 90 million users.
Another strategic move highlighted by Vanderhook was the introduction of the 'social' inbox in Gmail. This feature filtered notifications from competing social networks into a separate tab, potentially creating the impression of reduced activity on those platforms. Vanderhook suggests that this move accelerated the decline of competing social networks, including MySpace.
Vanderhook also raises concerns about the manipulation of Comscore numbers, which were widely used by journalists and analysts to gauge website performance. He alleges that Google's control over search and traffic allowed them to influence these metrics, shaping the narrative around MySpace's decline and Facebook's rise.
The former MySpace CEO argues that Google's actions went beyond fair competition, describing it as a calculated takedown using monopolistic power. He suggests that Google's ability to control various aspects of the internet ecosystem, including search, content, advertising, email, and user identity, gives it unprecedented power to shape the online landscape.
Vanderhook's account challenges the commonly held belief that Facebook was primarily responsible for MySpace's decline. Instead, he paints a picture of Google as the "silent executioner," using its dominant market position to systematically dismantle MySpace's online presence.
It's important to note that these allegations come from a former competitor of Google. Google has not yet responded to these claims.
The timing of Vanderhook's revelations is significant, during a major antitrust trial Google is facing in the United States. The U.S. Department of Justice and a coalition of state attorneys general are accusing Google of illegally monopolizing the search and search advertising markets.
Vanderhook's account raises broader questions about the power of tech giants and their ability to shape the internet landscape. It highlights the complex interplay between different online services and how control over key infrastructure like search and advertising can potentially be leveraged to influence market dynamics.
The story of MySpace's decline serves as a cautionary tale about the rapidly changing nature of the internet and the potential vulnerabilities of even the largest online platforms. It underscores the importance of ongoing discussions about antitrust regulations in the tech industry and the need for measures to ensure fair competition in the digital space.
As the antitrust trial against Google unfolds, Vanderhook's allegations may provide additional context to the broader debate about the power of tech giants and their impact on competition in the digital marketplace.
Key points from Tim Vanderhook
- MySpace became the world's largest website in 2006, dominating in social networking and music.
- Google acquired YouTube in late 2006, positioning it as a competitor to MySpace's music offerings.
- Google allegedly manipulated search results to prioritize its own properties over competitors.
- The acquisition of DoubleClick by Google reportedly allowed for redirection of ad dollars and traffic away from MySpace.
- Google Plus, launched in 2011, gained 90 million users by the end of the year, allegedly due to integration with other Google services.
- The introduction of the 'social' inbox in Gmail potentially created the impression of reduced activity on competing social networks.
- Vanderhook claims that Google's actions went beyond fair competition, describing it as a calculated takedown using monopolistic power.
- The account challenges the common narrative that Facebook was primarily responsible for MySpace's decline.
- These allegations come a day before the start of a major antitrust trial against Google in the United States.