The Digital Legal Battle You Should be Watching
If you've paid attention to politics over the past few years, then you already know what a hot topic TikTok has become in the political realm. Calls for bans, lawsuits, promises from presidential candidates to veto legislation or introduce it, TikTok has been a regular talking point and will continue to be while it remains one of the most-used social media platforms…
But there's another legal battle brewing that could have much larger and further-reaching consequences for the digital advertising landscape. Last week, the US Department of Justice called for sanctions against Google in its landmark antitrust case, trying to continue its effort to break up the alleged monopoly held by the tech giant.
Google's dominance has moved far beyond simply holding a majority in the search engine marketplace. Google Chrome holds an estimated 70% market share in web browser usage. The mobile device operating system Android, developed by Google, holds close to an 80% market share. All of Google's digital ad networks combine represent over 50% of digital advertising dollars spent in a given year.
Is it legal to have this much of a stranglehold on the tech world?
We'll find out.
The Department of Justice alleges that Google has engaged in anti-competitive conduct, including creating exclusive contracts with publishers that lock out competitors. These actions have effectively allowed Google to maintain a monopoly on the digital advertising world through ad serving and publishing, the DOJ claims. Google has been able to drive its own prices skyward for consumers while locking out competition, and stemmed innovation in the digital advertising landscape to protect its own investments.
So… What does this all mean for average online user?
For now, not much. This is going to be a lengthy and complicated legal battle, as tech is still a relatively new sector that the US government is still figuring out how to regulate. It is most likely that Google and the DOJ will find a middle-ground for settlement, Google will sell off some subsidiaries while protecting its biggest revenue drivers.
Even if the suit does somehow go to trial, years of appeals will follow regardless of the verdict. But, if the DOJ does succeed in having Google declared a monopoly and manages to break up its empire, the shift in landscape could happen very fast. The increase in competition will follow swiftly, as several large and well-funded rivals have been waiting for an opening to get a piece of Google's pie.
Does Google's massive market share on advertising and its possible end effect Android? Chrome? YouTube? Google Nest? Or any of the other dozens of products Google offers?
Once again, we'll find out.
Follow the news on the case, maybe even watch the highlights on TikTok while you still can.
Contact your digital advertising experts at SilverBack Advertising to stay up to date on the latest trends and news in the marketing world!