Google and Assertions of Control: Google, Too Much Control? Never
June 3, 2022
Technically Google does not own the Internet, but we know the search engine giant controls it. Google wants to keep the status quo in its favor, but Vox via Recode explains that a new antitrust bill could ruin it: “How Much Longer Can Google Own The Internet?” US lawmakers led by Republican Senator Mike Lee of Utah introduced the Competition Transparency in Digital Advertising Act. The bill is bipartisan and bicameral and it would prevent any company that has more than $20 billion in digital ad revenue from owning multiple parts of the advertising network. This bill would primarily target Meta and Google.
Google would be forced to choose between the roles of buyer, seller, and running the ad exchange between the pair. Google owns all three and denies allegations that it manipulates the market to its advantage. Lee claims Google’s control forces American consumers and businesses to pay monopoly taxes. Google retaliated by saying the bill is aiming at the wrong target and comes at the wrong time.
This would not be the only antitrust bill Google and other Big Tech companies are facing. Google, however, is in the biggest trouble. Google is facing two anti-competitive lawsuits filed by state attorneys general in all fifty states except Alabama and US territories DC, Guam, and Puerto Rico. Thirty-seven more state attorneys general filed another lawsuit about the Google Play mobile app store, seventeen attorneys general are suing about the content in Lee’s bill, and cases are coming from Epic Games and Match Group about Google’s app store. The US Department of Justice probably will file more lawsuits along with other countries. Two antitrust bills are likely to be ratified by the end of summer:
“It’s too early to say how likely it is that Lee’s bill will go anywhere. But we do know that two bipartisan antitrust bills are very close to becoming law, likely by the end of the summer. Both of them would forbid Google from giving its own products preference on the platforms it owns and operates: The Open App Markets Act would force the Google Play app store to follow certain rules, while the American Innovation and Choice Online Act bans self-preferencing on platforms that Big Tech companies own and operate. Google wouldn’t be allowed to give its own products prominent placement in Google search results, for instance, unless those products organically earned that spot.”
Over the past decade, Google has grown its market dominance and its minuscule competition attempted to prevail upon the US government that it was forming a monopoly and harming competition. Monopolies are not illegal in the United States, except when competition and consumers are hurt.
One of the DOJ lawsuits investigates Google’s exclusionary agreements with Apple and Mozilla. Google paid these companies to make Google the default search engine on their browsers. Apple and Mozilla extremely benefit from the exclusionary agreement with Google.
Users are forced to use Google as the default search engine and are not given a choice for anything else. Default search engines can be changed in a browser’s settings, but most users do not know how to find the option. Google counters that no one is forced to use their search engine.
The Google Play store lawsuit argues that even though Google allows alternatives for its app store, the company does not make it easy to find alternatives. The search engine giant claims that it allows for more app openness than other companies like Apple and its commission rate is about the same.
The ad revenue lawsuit claims to be harmful to consumers, because if Google controls the ad platform then it can charge businesses whatever they want. Businesses retain a smaller net profit and consumers are forced to pay higher prices.
Amazon is the only other company that controls as much ad space as Google. Amazon controls retail and Google controls search. Both Tech Giants own the Internet, although Google owns more.
Whitney Grace, June 3, 2022
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