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When one company have more than 90% market share then: Yes, we do need an alternative. (Google market in search has been reported to be as high as 94% in countries like Denmark).

If a company manages to upset Google then that company ceases to exists online, regardless of the validity of Google reason to blacklist that company. Ideally no search engine would be above 20% market share (20% being a random low number I just made up).

Right now websites and marketing material/money is directed at Google exclusively, making it continually harder for new search companies to succeed.

I agree with you. Google has too much power over small webshops. If you somehow come in bad standing at Google you can just shut down your operation, because you won't make much money.

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