The Google: EU Action Generates a Meh
June 24, 2021
I read “Europe Is Finally Hitting Google Where It Hurts Most.”
Here’s a passage I found interesting:
The fact that it owns the biggest search engine, video streaming website and e-mail client isn’t the top cause for concern — it’s that the finances of all three are tied together through the ads that pay for them.
Yep, but I would suggest that Google is doing the synergy thing better than most mom and pop outfits.
Here’s another interesting statement:
The problem is that Google holds all of the power. In the auction house analogy, the company is the buyer’s agent, the seller’s agent and often the seller too. It has both the opportunity and incentive to A) overcharge advertisers who have no visibility into the value of competing bids; and B) send more revenue toward its own websites. It can decide to direct my advertising spend towards YouTube, rather than another video site.
I think Google is holding the cards in the online ad game. To make the game more profitable, Google can pull cards from its other data decks. Will the EU try to end the game or just walk out of the Googlegarch’s casino?
Stephen E Arnold, June 24, 2021
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