Is Google a “Monopolist,” and What Does That Mean for Users?
On August 5, 2024, a Federal Judge in U.S. et al. v. Google labeled Google a "Monopolist." The Judge looked at Google’s market share, as well as Google’s behavior as the biggest competitor in the market.
Is Google a Monopoly?
What does this decision mean for consumers?
Let’s dive in!
What is a monopoly, and why should I care if Google has one?
Monopolies happen when one company controls most of the market for a product or service, making it hard for other companies to compete. Antitrust laws exist to protect consumers like us by making sure companies compete fairly, which usually leads to better products and lower prices.
Is Google a monopoly?
It's pretty clear that Google controls a huge part of the search engine market. In fact, "Google" has become a verb that means "to search the internet." Even though other search engines like Bing and DuckDuckGo exist, most people still choose Google.
Why do people prefer Google?
Many people, including Google’s lawyers, say that Google gives the best search results, so it's natural for people to use it more. But the government argues that Google stays on top by paying companies to make it the default search engine on their devices. For example, Google pays Apple over $20 billion each year to make Google the default search engine on Safari, the browser on all Apple devices.
Google has similar contracts with many of the biggest players in the industry including Mozilla (FireFox), Samsung, Motorola, and Sony, and US-based wireless carriers, AT&T, Verizon, and T-Mobile. These contracts make Google the default search engine on nearly every desktop and mobile device sold in the United States, giving Google a huge amount of power in the search engine market and making Google a monopoly under U.S. law.
If I’m happy with Google, what’s the problem?
Even if you like using Google, there are some hidden downsides.
Price Control: When you search on Google, you see ads and sponsored links. Because Google controls the market, it can charge more for these ads. This might make the products you buy more expensive.
Less Competition: Google’s contracts keep other search engines from growing. This makes it harder for new, possibly better, search engines to achieve enough scale to succeed. As a result, we might be missing out on better search options and new technology. Google’s basic search technology is ancient by today’s standards. Just ask ChatGPT.
What does this mean for me?
The next time you get a new device, you might notice that it asks if you want Google as your default search engine, allowing users to choose which search engine they use and reducing Google’s control of the search engine market.
You may or may not notice that new devices might be more expensive if these deals are struck down. Apple is projected to lose 5-7% of its total yearly profits by losing the $20 billion it has been paid by Google. The other contracting companies will suffer similar losses.
Without these contracts, other search engines and technologies could have a better chance to grow. For example, AI tools like ChatGPT are already changing how people search for information. Apple recently launched Apple Intelligence which could have similar functionality. These changes could happen even faster now.
Conclusion
The recent ruling against Google highlights the challenges and potential downsides of one company having too much control over the search engine market. While many of us use Google because it's familiar and reliable, this monopoly power can lead to higher prices and less innovation. As the landscape changes, with new technologies and competitors emerging, we might see a shift in how we search for information. It's important to understand these changes so we can make informed choices about the technology we use every day.
