How Much Longer can Google (& Facebook) DOMINATE Online Advertising?

How Much Longer can Google (& Facebook) DOMINATE Online Advertising?

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Key Points

  • A group of US lawmakers introduced the Competition and Transparency in Digital Advertising Act, which would forbid any company with more than $20 billion in digital advertising revenue from owning multiple parts of the digital advertising chain.
  • Senator Lee believes that the lack of competition in digital advertising is allowing companies to charge monopoly prices, which hurts American businesses and consumers.
  • Google said that the bill is wrong and will have negative consequences.
  • Google is being sued by the Department of Justice and 14 state attorneys general over antitrust allegations.
  • There are many lawsuits against Google for antitrust violations.
  • There are 2 bipartisan bills that may become law soon, which forbid Google from giving its own products preference on the platforms it owns and operates.
  • Google has become a powerful company due to its ubiquity and ability to remain free while hurting competitors.
  • Google was an industry-changing upstart that quickly became the market leader.
  • Google’s success in the ad business is attributed to its 2007 acquisition of DoubleClick.
  • The FTC did not pursue a case against Google in 2011, instead getting agreements from the company to change some business practices or deciding that their actions were justified because they improved Google’s services and its users’ experience.
  • Google has become a large and powerful company, and is now being scrutinized by the government for antitrust violations.
  • Google allegedly hurts competition e.g. Yelp by putting its reviews above others in search engine results.
  • Google dominates most markets, making it difficult for others to compete.
  • The US has antitrust laws to prevent companies from using their dominance to hurt competition.
  • The DOJ and 38 states are suing Google because they allegedly paid Apple and Mozilla to make them the default search engine on their browsers. That money is the vast majority of Mozilla’s funding, and a not-insignificant chunk of Apple’s profits, too.

“People don’t decide to use Google, that decision is made for them,”

Kamyl Bazbaz
  • Google denies that the DOJ’s lawsuit would help consumers.
  • Google has been sued for making deals with companies to be the default search engine.
  • Google is being sued because it is impossible to compete with the company’s ad tech business.

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