Google operates in various industries, including search, advertising, and online services. Some argue that Google has become a “dangerous monopoly” because of its dominance in these industries and its control over the flow of information and advertising revenue on the internet.
There are a few key reasons why some people believe the company is a dangerous monopoly:
- Market dominance: Google has a near-monopoly on the search market, with a market share of around 90%. This dominance allows it to control the flow of information and advertising revenue on the internet, which can be used to stifle competition and maintain its market position.
- Data collection: Google collects vast amounts of data on its users, which it uses to target advertising and personalize search results. This data collection can be seen as a potential violation of privacy and an abuse of power.
- Advantages of its services: The company has been criticized for promoting its services in search results and giving them preferential treatment at the expense of smaller competitors.
- Impact on smaller companies: Google’s dominance in search and online advertising has significantly impacted smaller companies and startups, making it difficult for them to compete and survive.
Google has faced several anti-competitive actions taken against it in recent years, mostly in the European Union and the United States. Some examples include:
- European Union: In 2017, the European Commission imposed a $2.7 billion fine on Google for promoting its shopping service in search results at the expense of smaller competitors. The commission also ordered Google to change its practices. In 2018, the commission imposed a $5 billion fine on Google for using its Android mobile operating system to cement the dominance of its search engine. Google was ordered to change its practices and offer Android licensees a browser and search engine choice.
- United States: In 2013, the Federal Trade Commission (FTC) launched an investigation into Google’s search practices but ultimately closed the case without taking action. However, in 2020, the Department of Justice (DOJ) filed an antitrust lawsuit against Google, alleging that the company used its market power to suppress competition in the search and advertising markets.
- India: In 2020, the Competition Commission of India (CCI) imposed a $21 million fine on Google for alleged abuse of its dominant position in the Indian market for the online search.
- Australia: In 2020, the Australian Competition and Consumer Commission (ACCC) announced it would take legal action against the company for alleged personal data misuse and location data misrepresentation to advertisers.
- Other countries: The company has also faced investigations and fines in other countries, such as Brazil, Russia, South Korea, and Taiwan, over alleged anti-competitive practices.
It’s worth noting that Google has denied any wrongdoing in these cases and has appealed some fines and orders to change its practices. The outcome of these cases is still pending or under appeal.
Very true…….Politics and Business when mixed together, are always dangerous to the corporates. Its a friendship of opportunists and in the changing political scenerioes corporate is ought to fall. It becomes very hard to recover from a downfall in the present age of highly competitive markets and very rightly said many others are surely there to grab this opportunity.
It would be interesting to watch what google and chinese have in store for the days to come….. An article in AlJazeera.net says that google trails homegrown Chinese rival Baidu.com, which handles more than 60 per cent of online searches.
So as you rightly said, google’s withdrawl from china may launch other competitors to overtake google in the time to come.