Few Match Google; Does That Make It a Monopoly?

[Commentary] Why would the US government be so eager to punish Google, the country's most successful and innovative start-up in recent memory? Google is indisputably a victim of its own success. Its market share of Internet search has continued to rise steadily, encompassing roughly two-thirds of total searches. At 76%, its share of search advertising is even higher, thanks to Google's technological prowess at matching ads to people's search queries. Given the accompanying high profit margins on this lucrative business, Google displays the telltale characteristics of a monopolist: high, even dominant market share, with high profits and pricing power that are evidence of high barriers to entry for competitors. Of course, this is exactly what makes Google so attractive to investors. [James B. Stewart is a columnist for SmartMoney magazine.]