Google Taking the Stand Again

byDaverh

1.6K followers

3 months ago

It looks like Google's antitrust issues are looming large again.

A federal judge ruled that Google has a monopoly over online search and advertising. U.S. District Judge Amit Mehta decided that Google used its dominant market position to suppress competition and hold onto its monopoly status through anti-competitive practices.

Google used anti-competitive practices to limit competition, control the market, and maintain or increase its market power.

Anti-competitive Practices

What do anti-competitive practices do? What does it mean to the consumer? The practice:

• Limits choices
• Increases prices
• Stifles innovation

One of the key points in the ruling was that Google maintained its search engine's default status on various web browsers through exclusive agreements, effectively stifling competition.

Exclusive agreements include making deals with suppliers or distributors that prevent them from doing business with competitors.

Another tactic is predatory pricing, which involves lowering prices to drive away competition and then raising prices.

There is too much involved in anti-competitive practices to unpack here, So I will throw out words, and you can draw your own conclusions. Bundled with the term could be:

• Price rigging and bundling are where you have to buy this to buy that product.
• Exclusion - a supplier or retailer is restricted to buying from or selling to only one company
• Market Allocation - Competitors agree to divide markets among themselves
• Abuse of Dominant Position to impose unfair conditions or prices on customers or suppliers.
• Mergers and Acquisitions - Gobbling up competitors
• Bid Rigging - Ensuring that contracts are awarded to predetermined winners.
• Denying competitors access to essential facilities or infrastructure needed to compete in the market.

This decision follows a significant antitrust trial that highlighted Google's monopolistic behaviors in digital advertising​ a year ago. Magus was writing about it then.

The U.S. Department of Justice and several state attorneys general have filed a civil antitrust suit against Google.

This lawsuit alleges that Google monopolized various digital advertising technologies, harming competitors and increasing advertising costs for businesses and consumers​.

The ruling and ongoing legal actions against Google are seen as landmark cases that could have far-reaching implications for the tech industry and antitrust enforcement.

What Could it Mean to Affiliate Marketers?

If Google were to be broken up or severely regulated, other search engines would naturally rise to fill the void.

The playing field would be leveled. Competition would be allowed, encouraged, etc. Bing is already picking up steam, but has a long way to go to catch up with the Google monster.

Innovation is always a natural result of drastic change. Competition could lead to lower ad prices, PPC costs, and even more targeted marketing at search engines reflecting individual marketers' niches.

In short, the antitrust ruling against Google could lead to a more competitive, fair, and innovative online business environment, benefiting affiliate marketers through lower costs, a better choice of traffic sources, and better tools and platforms.

This post has many woulds, coulds, and maybes, but one thing is certain. Google will appeal the ruling.

These are interesting times, and the outcome of this suit will be interesting. Should Google be regulated or broken up, or will a hefty fine be enough to punish it?

Take care.

Dave

~Sources include Law .com and the US Dept of Justice.