July 2013

[Commentary] In addition to diverse search tools, Google’s assets also include a powerhouse of advertising services (AdWords, etc.), communication and publishing tools (Drive, Hangouts), developmental resources (OpenSocial), social platforms (Google Plus), map-related products (Google Maps), streaming entertainment (Google Play), statistical tools (Analytics), operating systems (Android, Chrome OS), desktop and mobile Web applications (Gmail), and even hardware (Galaxy Nexus). And yes, while Google’s search business continues to grow and expand successfully, it isn’t without potential competitors in major areas of its permeating business model.

And while there may be obvious competitors like Microsoft and Apple, there are other partners that could also become more fearsome competitors over time. Two that come to mind are Amazon and Salesforce. As Amazon continues to become the e-commerce giant, it may be able to siphon advertising revenue by diverting e-commerce traffic away from Google, and Salesforce’s combination of sales data with social insight may redirect real spend away from search into the more social arenas online.

[Hughes is CEO of The Search Agency]

Allowing states to tax online purchases could produce about 1.5 million new jobs and a $563 billion boost in gross domestic product, according to a report from famed conservative economist Arthur B. Laffer.

The study, which was co-authored by Donna Arduin, analyzed the economic impact of online sales tax legislation if states lowered other tax rates, such as personal income taxes. The authors argued that sales taxes are "the least damaging to a state's economy and employment." "Using additional sales tax revenue resulting from federal e-fairness language to lower other taxes is a distinctly pro-growth policy. It’s a win/win for states," they wrote. They concluded that the lack of an online sales tax encourages consumers to evaluate products at local retailers, but then buy the products from out-of-state websites.

The House Homeland Security Subcommittee on Cybersecurity held a hearing on the President's executive order mandating the development of a cybersecurity framework, and it is clear the issue of whether that framework becomes regulation by proxy remains a concern to Republican leadership on the subcommittee.

Hearing witnesses from the National Institute of Standards and Technology (NIST) and the Department of Homeland Security assured the subcommittee that the they were still focused on a voluntary framework and that the "buy-in" from industry stakeholders would be critical to the success of the program. But Robert Kolasky from the Department of Homeland Security, who is among the officials overseeing the cybersecurity standards-setting process, said the Administration still believed a "comprehensive suite" of legislation was needed to buttress the order. Those include facilitating information sharing with government, something the president could not order, privacy and civil liberties protections, incentivizing adherence to voluntary best practices and data breach reporting requirements.

Sprint’s new unlimited wireless plan, announced after its $21.6 billion acquisition by Japan’s SoftBank, did not deliver the aggressive price cuts that some analysts had expected. But cheaper plans could be coming. Masayoshi Son, SoftBank’s chief executive, hinted that further price cuts could be in the works as the company invests to upgrade Sprint, America’s No. 3 wireless carrier.

“We will be aggressive in technology, price packages, services on every front,” Son said. “At the same time, we will improve the network to be the world’s best,” he said. Son has been behind a sharp decline in prices for broadband and cellphone services in Japan. Expectations are high that Son will bring that strategy to Sprint, which has struggled with subscriber defections for years and that Mr. Son will inject healthy dose of competition to America’s mobile industry.