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| Google faces a serious threat to ad domination |
According to CNBC, Google is currently facing the biggest organizational threat to company life in two decades. According to sources, U.S. prosecutors investigating potential violations of Google's antitrust laws are likely to dismantle massive advertising technology businesses. Anticipate disputes.
The Department of Justice and nearly all US lawyers have investigated Google’s allegations of antitrust violations. The federal investigation focuses on search and advertising distortions and Google's use of the Android operating system.
Google spokeswoman Julie McAllister said the company continues to work with the US Department of Justice and Attorney General in Texas. We have no update or comment on this speculation. Our digital advertising products compete in a crowded industry, have hundreds of competitors and technologies, and help reduce costs for advertisers and consumers.
In mid-May, Reuters said prosecutors led by the Texas Attorney General could file a lawsuit to abuse the dominance against the search giant later this year. The Department of Justice is preparing to file a complaint in the United States. This summer is fast.
Google recently announced several administrative changes, including expanding the oversight of the company's VP for Research Technology (Prabhakar Raghavan) and developing the company's advertising system.
Many antitrust complaints against the search giant revolve around advertising for search engine services and charging advertising costs for the search engine. Raghavan can control all details of Google search engine, including search and actual ad result.
Critics have pointed out that the search giant's advertising tools are designed in a way that makes it nearly impossible for anyone else to offer suitable competitors. These critics believe that Google is involved in the search engines, YouTube, Gmail, and Google. Other services that control the company hinder competition for advertising.
They also claim that Google effectively controls all aspects of the entire advertising sale and purchase mechanism, which significantly reduces customer negotiating power in the process.
Google also indicates that it is not the only company in the United States that has this type of integration, such as: b. (AT&T), (Comcast), and (Verizon), and according to St. Louis Federal Reserve Bank, the cost of digital advertising has been reduced by 40%. In 2010, this weakened Google’s strong will among customers to negotiate.
Reducing Google’s advertising business can be difficult because it’s not a standalone service, but is the product of two major ten-year acquisitions, 2007 (DoubleClick) and 2009 (AdMob).
While most of Google’s revenue comes from advertising sales, Google’s backbone of the technology that makes up this business’s business column is much lower, including service revenue (AdMob), (AdSense), and (Google Ads Manager) roughly $ 22 billion. . At that time, the company's total sales in fiscal 2019 amounted to $ 161 billion.