Google proposes concessions to avoid antitrust proceedings in the advertising business, what's wrong and how to deal with it?
Google has been repeatedly sued for antitrust violations related to the search market , and the existence of a secret program 'Project Bernanki' that unreasonably prioritizes its own advertising has been regarded as a problem . There are many cases that are pointed out. Therefore, it is reported that Alphabet, which operates Google and YouTube, is taking new concession measures to avoid antitrust proceedings.
Google proposes moving ad business to Alphabet to keep regulators at bay | Ars Technica
Google offers to split parts of ad business into Alphabet --9to5Google
Google has been repeatedly accused of abusing its monopoly position in search to create a 'secret program that makes its ad-purchasing system more advantageous than competitors' products,' and Google has also 'advertised to advertise on YouTube.' It has been pointed out that it is a violation of the Antimonopoly Act that 'you must use the advertising service of.' Regarding YouTube, it was revealed around June 2022 that it is trying to avoid the lawsuit by taking solutions such as 'allowing advertising companies other than Google to place YouTube ads'. ..
Google Proposes 'Rival Advertising Companies Place Ads on YouTube' to Avoid Huge Fines of Up to 10% of Sales under EU Antitrust Law-GIGAZINE
In July 2022, a new 'concession to avoid the possibility of antitrust proceedings regarding Google advertising' was reported. According to The Wall Street Journal , Google has proposed to auction website and app ads to split the business into other companies under its umbrella rather than operating it in-house. It is expected that part of the advertising business will be moved from Google to Alphabet and then taken over by other companies.
It has been pointed out that the problem with Google Ads is that it 'suppresses both purchases and sales.' If you want to purchase Google's web advertisement, you will be semi-forced by the publisher who sells the advertisement space on Google's auction system, so the scale of the advertising business, operation method, price, etc. are all decided by Google, Google There is a problem that it is easy for Google to give priority to its own site. There are cases where you sell your own products on shopping sites and display them with priority, but Google is taken up as a big problem because it is an order of magnitude larger. Therefore, we are proposing measures to avoid the monopoly state by moving the 'selling' side of this Google advertisement to Alphabet and staying at Google on the 'buying' side.
'We have no plans to sell or withdraw from our advertising business. We are working hard with regulatory agencies,' a Google representative said in a statement. At the time of writing, it was unclear how much Google's proposal to 'split the advertising business' was accepted by the judicial authorities allegedly preparing the proceedings.
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