Coping with Monopoly in the Digital Age
A google search is an answer to most queries today. It is the primary source for research, news, and entertainment. Recently the Department of Justice and eleven state attorney generals have filed an antitrust lawsuit against Google. The complaint encompasses Google's dominance in search and online advertising dominance, essentially monopolizing the market, therefore, killing competition and innovation.
The Essense of the Google Anti-Trust Lawsuit
The Justice Department asserts that Google has made it impossible to compete in the search industry. It has become so big (90% of US search queries and 95% of mobile search queries) that no competitor can achieve the scale to compete effectively. Additionally, Google has created contracts with major players in the telecommunications industry (Apple, Motorola, Verizon, etc), that make Googles search product the default tool for their platforms. Google achieves this due to its large advertising business and the android operating systems. Small search competitors do not stand a chance against this mammoth.
On the other hand, Google responded that “people don’t use Google because they have to, they use it because they choose to.” It is behaving like any other cereal brand that pays supermarkets to place their products at eye-level on the shelf. Google believes that its “Great Free Product” is the reason for their success. Wall Street is not spooked by this lawsuit and considers it more noise than substance. Google shares are up 3% since the lawsuit was announced, and up 20% in 2020.
Is it the Antitrust Lawsuit Compelling Enough?
I am an avid daily user of the Google search engine. I have consciously gone and changed the default search engine, from Bing to Google, on my Acer laptop multiple times. There is no question, that Google's search product is more functional than other tech search giants. If people can proactively download different apps on their phones, the same people are opting to search on Google for its superior interface. Therefore, I believe pre-loading a search engine doesn't hamper the provision of choice. Many searches on Bing and Yahoo are for the Google search engine. Even if the Google search engine is not pre-set in phones, telephones, and tablets users will switch to Google and the effect will be minimal. The supremacy and ease of use of the Google search engine are undeniable.
Google, Facebook, and Twitter have built their dynasty by using the Power of Free. The free services attract market share and then that same market share is sold to advertisers and other tech companies. The antitrust laws were designed to protect the consumers from monopolies and cartels which limited options and charged higher prices. Prices cannot get lower than free as a result Google might fight till the end and get away with a fine. Congress will need to widen its nets to catch corporate power in the digital age.
However, if BIG TECH lets its pomposity and complacency get the better of it, it might face a harsh opponent in Congress. It has managed to create numerous enemies due to its arrogance and has been accused of killing innovation. These giant tech companies might be forced to break up, face obstacles while acquiring smaller companies and organizations may be empowered to regulate this market. We already know of TOO BIG TO FAIL Wall St Banks, lets hope BIG TECH is within the reach of the government.
Aftermath for Marketers
Google is a necessary evil. It has transformed the way we communicate, reach people, and access information. The antitrust lawsuit against Google indicates no transparent outcome that would directly affect digital marketing. The dominance of Google is beyond compare and companies and marketers will continue to advertise on the all-encompassing reach platform provided by Google. Marketers should be aware of the repercussions of a regulated digital industry, but for the most part in the foreseeable future, its business as usual.
