Should Google break up its Digital Advertising business?

Is Google’s Digital Advertising business too big?

Google is under pressure to break up its digital advertising business, as the company’s dominant market share has raised antitrust concerns. This is the second round of antitrust lawsuits, the first round were launched against Google’s parent company during 2020.

According to a recent report from the U.S. Department of Justice, Google holds around 90 percent of the market share when it comes to digital display advertising and approximately 40 percent of all search engine marketing services. This gives the tech giant an overwhelming advantage in comparison to other competitors, making it difficult for them to compete with Google’s ad products and services.

Small business owners here in Western Australia consistently tell us that even small changes in the Google algorithm can make a big difference to their sales, the requirements to rank well on Google search engines is one of the prime considerations for small business owners in metro and rural Australia.

Supporters of breaking up Google’s ad business argue that this will create more competition and opportunities for small businesses who currently have no choice but to go through Google when they are looking for a platform through which they can advertise their products or services digitally.

The authorities allege that Google’s plan to assert dominance has been to “neutralise or eliminate” rivals through acquisitions and to force advertisers to use its products by making it difficult to use competitors’ products.

You can read more about the US Government’s actions against Google here on mumbrella.com.au

Author: Kimmaree Thompson | First Published 25 Jan 2023