And it’s avoided tough government scrutiny for years based in part on the idea that people searching the internet are not Google’s true customers.
“As a consequence, countless advertisers must pay a toll to Google’s search advertising and general search text advertising monopolies,” the government wrote in Tuesday's landmark complaint, which asks a federal court to intervene to protect competition. “American consumers are forced to accept Google’s policies, privacy practices, and use of personal data; and new companies with innovative business models cannot emerge from Google’s long shadow.
Google controls about 90% of global web searches, but it holds a smaller share of the overall digital advertising market. Google’s business works by scooping up personal data from billions of people who are searching online, watching YouTube videos, following digital map routes, talking to its voice assistant or using its phone software. That data helps feed the advertising machine that has turned Google into a behemoth.
But the Justice Department argues that Google “deprives rivals of the quality, reach, and financial position necessary to mount any meaningful competition to Google’s longstanding monopolies”, and that foreclosing competition has reduced the quality of search services. Seth Kalvert, Tripadvisor’s senior vice-president and general counsel, said that the antitrust charges are good for consumers and could help preserve a vision of the internet as a place of transparency, “the wisdom of crowds” and vibrant competition.
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