According to people familiar with the matter, the U.S. Department of justice and multi state attorneys general are investigating whether Google has implemented the so-called tie-in strategy, in which different products are bundled for sale, which can help it crowd out competitors and give itself an unfair advantage.
The focus of the inquiry was on the discounts, special features and other terms offered by Google, which pushed advertisers and publishers to use only Googles products, rather than mix and match their competitors services. Regulators are also asking how Googles larger online search business interacts with the web sector to increase its share of the digital advertising market, people familiar with the matter said.
If these tools are used to maintain monopolies, prevent new players from entering, and crowd out competitors, then they may be antitrust, Kimmelman said
While we are still cooperating with the investigation, it is clear that our digital advertising products compete with hundreds of competitors and technologies in a crowded industry, said Google spokesman Julie tarallo McAlister. This competition increases the choice, helps to reduce the price of Internet advertisement, and reduces the cost of merchants and consumers.
U.S. investigators are investigating three major categories of the advertising technology market: the seller software that web publishers use to sell ads, the buyer services marketers use to buy those ads, and the exchanges that connect the two sides. Google has the tools to provide all of these features.
The problem is that Google controls all these links, which sounds a bit like the stock market, except that Googles advertising market is not regulated, pramila jayapal, a democratic representative in Washington, said at a July 29 congressional antitrust hearing
According to people familiar with the matter, government investigators asked how Google would exempt publishers from using its sellers tools if publishers chose to auction their advertising space in the Google ad market. Regulators also asked about Googles decision in 2015 to limit advertising purchases on its dominant YouTube video service to its own auction tool dv360.
Competitors have also complained to investigators that Google has given its dominant online search business an unfair advantage in its display advertising business. When advertisers buy search ads, Google allows them to choose to transfer any extra marketing money to display ads. That extra spending will then flow into Googles advertising network and trading platform, which many competitors cannot provide.
The budget for search advertising marketing is so large that the extra money spilled over to Googles display ads sometimes accounts for about 10% of the revenue of online publishers, so most publishers have to pay to enter Googles advertising market. Google is where you have to go, theres no better choice, said Kim Melman
A Google spokesman said web publishers could get the extra ad spending through other exchanges, but declined to say how much of those ads were sold outside Googles platform.
For many critics, the bigger concern is how Google passes information between its different departments in ways that other industries prohibit. Regulators are considering remedial measures, possibly including separating Googles ad server from other businesses, which, after all, plays a key role in advertising selection and pricing.
U.S. senators from both parties said at a hearing in the Senate that Google, a unit of alphabet, has a clear dominant position in the search, online video and advertising technology markets, and that it has imposed a coercive monopoly to benefit its business from this market position.
Google controls youtube and search, both monopolistic platforms; you control a lot of consumer data from consumer facing platforms - Gmail, Google maps, gsuite, etc., says Republican Senator Josh Hawley of Missouri. Then you use that data in advertising technology, and thats what you make of you The advantages of. It all looks like a monopoly on top of monopoly.
The U.S. Department of justice and state attorneys general have questioned some of Googles market behaviors, including how Google uses discount, restriction and bundling measures to achieve the purpose of advertisers and publishers using only Google products and illegally excluding services provided by competitors.
Richard Blumenthal, a Democratic senator from Connecticut, said rules should be made as a service platform to be neutral between buyers and sellers and to auction services fairly, but Googles behavior was unacceptable..
Don Harrison, President of Googles global partnerships and enterprise development business, said Google is not actually dominant in the market it operates. Google may be in the lead when it comes to all types of general search, but consumers are more likely to choose Amazons service platform for commodity queries and other business searches u3002
The U.S. Department of justice is expected to sue Google in the next few weeks as it faces antitrust charges from U.S. congressmen, state attorneys general and competitors.
China is ready to launch an antitrust investigation into Google. Ma Yun is no longer a director of Alibaba group. He still has enough control to use lithium iron phosphate battery. It is said that Tesla will promote a new domestic model 3. Source: interface news editor: Wang Fengzhi_ NT2541