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Google is illegally monopolizing online advertising tech, judge rules

nytimes.com

201–210 of 510 posts

Re: Google is illegally monopolizing online advertising tech, judge rules

#201

Google isn't a monopoly in the Standard Oil sense of the term. Its ad revenue is big because it occupies so much user attention. I actually think many suggested remedies would actually make Google more profitable. For example, prohibiting Apple-Style search deals would mean that Google gets a smaller amount of traffic, but that traffic would come with zero cost. That could end up being more profitable. A similar argu…

87% of Googles revenue in 2023 was advertising. $265 billion. They hold more than 80% market dominance in all markets they compete in. https://www.statista.com/statistics/266249/advertising-reven...

Market share and market dominance are very sensitive to how you define the market.

Facebook has >$100B ad revenue [1]. Does that compete with Google? Reasonable people can probably disagree about exactly how much so. From an advertisers perspective they compete for the same marketing budget, but from a consumers point of view they feel like different products.

Things get even more tricky when we compare YouTube to TikTok, or Amazon search result ads to Google search ads.

https://www.statista.com/statistics/544001/facebooks-adverti...

Re: Google is illegally monopolizing online advertising tech, judge rules

#202
This is necessary now, but it should have been done years back.

Nowadays, many companies backed up by investors with very deep pockets are doing this in all markets: start to buy middle-man companies in a space, it does not matter which one, dominate the market thanks to monopolistic power. Screw the clients making them pay too much, screw the providers paying them too little. Go for the next market.

Google does this for ads. But, with Apple, does the same for app vendors. Amazon does it for all kinds of brands with physical products. Uber does it for taxi drivers and their clients. All of them take a big chunk of the profit while making things more expensive, but they are the only real option to reach clients as they have used tactics to monopolize entire markets.

This should be impossible, because there are laws against it. If it is allowed the future of the economy is one big corporation with all workers working for it, and everybody buying from it. It looks like a scifi dystopia.

Re: Google is illegally monopolizing online advertising tech, judge rules

#203
post #169
post #158

Earlier quoted context omitted.

> it is irrelevant of whether publisher earns 75% or 30% of the total revenue Of course it matters if a middleman is skimming off 70% of the revenue in a given market. > it is incredibly efficient On what planet is a loss of 70% of the resources to the matching process between buyers and sellers "incredibly efficient"? > What matters is how much they are earning compared to the next best alternative. Right, which is…

> On what planet is a loss of 70% of the resources to the matching process between buyers and sellers "incredibly efficient"? One where the market maker is taking up the cost of providing a market. E.g. Steam takes a 30% cut for providing the infrastructure required to distribute games. Some people/companies can do it for less but it is the best option for a majority of sellers. If the market maker did not the seller…

30% is a long way away from 70% and Steam are providing substantially more of a service for that cut.

Re: Google is illegally monopolizing online advertising tech, judge rules

#204
post #156

Earlier quoted context omitted.

Perhaps Google does well for their publishers but do they do well for advertisers? Inherently it seems like it's impossible to do both because what's good for one group is bad for another. Fortunately with healthy competition we solve this problem since alternatives could be used. But since Google is playing both sides and has so much sway over the market, they're able to manipulate things. Even if they're not manipu…

> Inherently it seems like it's impossible to do both but that is the value of a marketplace, aligning buyers and sellers via the price mechanism

Isn't this decision about Google abusing their marketplace (as all marketplace owners will inevitably do), by pushing their own stuff?

Every setup where someone makes the platform and sells stuff built on top of it is inherently abusive. You just don't know when the abuse will come and against whom.

Re: Google is illegally monopolizing online advertising tech, judge rules

#205
post #192

I've always been somewhat opposed to this, because there's already like 10 different search alternatives, and now AI is taking over, which will further weaken their grip. Google is on top because they do the best job; I use Yandex primarily, but I switch back to google all the time for coding related questions. In terms of advertising, there's billions of views on Facebook/Instagram/X to get, in addition to all the o…

This is not that case. This case is about how Google only serves certain ad inventory to people who use their products.

Then what is the definition of a monopoly? It doesn’t appear to be the same definition as “the exclusive possession or control of the supply of or trade in a commodity or service.” Do they exclusively control all ad inventory? Do they control all devices receiving ads? GP states that they don’t have exclusive control broadly, just within their own ecosystem. That’s not the definition of a monopoly though, so it seems like a motte and bailey calling google a monopoly.

Re: Google is illegally monopolizing online advertising tech, judge rules

#207

Earlier quoted context omitted.

In the sense of the Sherman Act and similar legislation, monopolies exist in the sense of having exclusive control over some supply and raising prices against consumers. This isn't what Google does, they generally lower prices for consumers and the competition is only a click away.

The consumer harm standard is an outgrowth of the work of Robert Bork, who was Solicitor General for Nixon and Ford, respectively. It was not established by legislation but rather as a matter of conservative legal doctrine. Before Bork the commonly held evaluation standard was based on the Rule Of Reason. The Sherman Antitrust Act didn’t establish any guidelines for how it was suppose to be interpreted (the whole thi…

I judge this Chicago-school-pushed shift in antitrust enforcement so bad that I usually mark it out as the first noteworthy step on our current thrust toward authoritarianism.

The market consolidation we've seen since, and the concentration of power, have been absolute poison for both liberal democracy and the good aspects of capitalism, so far as contributing to the common good.

Re: Google is illegally monopolizing online advertising tech, judge rules

#208

I don't think this article explains it well. Google sells ad space on behalf of the publishers and also sells the ads on behalf of the advertisers. It also runs the auction that places the ads into the ad space. See this graphic https://images.app.goo.gl/ADx5xrAnWNicgoFu7 . Parts of this can definately be broken up without destroying Google.

When a media buyer puts $1.00 in on one side of the system, on average only $0.60 makes it to the publisher. In some cases less than $0.50 gets to them. Advertising is an intentionally complex system so that companies can clip the ticket at multiple stages throughout the process. Google should be broken up, but the whole ad tech system needs to go into the bin if these problems are going to ever get fixed. https://ww…

Running a DSP is quite expensive if you have all the features advertisers want.

Re: Google is illegally monopolizing online advertising tech, judge rules

#209
post #93

the FTC is like Jim Cramer. Once they judge a business to be a monopoly, the business falls apart and the monopoly is irrelevant. Look at the hundreds of millions wasted on the Windows / IE monopoly trial. the AT&T break up set American technology back by decades and killed our domestic chip production.

> the AT&T break up set American technology back by decades and killed our domestic chip production.

Are we gonna pretend W never happened?

Re: Google is illegally monopolizing online advertising tech, judge rules

#210
post #93

the FTC is like Jim Cramer. Once they judge a business to be a monopoly, the business falls apart and the monopoly is irrelevant. Look at the hundreds of millions wasted on the Windows / IE monopoly trial. the AT&T break up set American technology back by decades and killed our domestic chip production.

Can you provide some sources that support these claims? This comment is so far removed from any viewpoint I've seen before on this topic that I'm worried I might have a massive blindspot.

Especially this:

> the AT&T break up set American technology back by decades and killed our domestic chip production.

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