Midway through April, a U.S. District Court (Virginia) ruled that Google had violated U.S. antitrust laws by creating a monopoly over digital advertiser.
Additionally, the same court ruled that Google had increased advertising costs for businesses using it’s services (increased cost per click on ads) as well as harming the transparency of it’s search engine for every day users.
What a mouthful that was! It’s not every day you get a monopoly lawsuit against one of the world’s biggest companies, so we’ll do everything we can do break it down for you.
There’s no doubt this will have massive repercussions for businesses in Australia (although you may have to still wait six to twelve months to feel it’s effects.)
Haven’t heard anything about the case yet? Here’s our quick update:
The Monopoly Lawsuit In A Nutshell
The case against Google was primarily one of monopoly over the ‘digital square”, aka, digital advertising and search results.
Although, in addition, rising advertising costs with Google and violating the transparency and usability of its search engine for everyday users were also included.
The U.S. district court ruled that Google is unfairly using its enormous portfolio of advertising tools, platforms and auctions to monopolies the digital space that we all use to search for answers and businesses. Suffice it to say, but plenty of other parties agreed with this ruling and added their support, including:
- Other search engines, like Firefox and Bing
- Digital marketing agencies large and small, who claim that Google Ads monopoly is unethical
- Privacy enthusiasts, who claim that Google’s data-collection and subsequent profiling are an invasion of privacy
In addition to this, the same court ruled that Google was and is still using unfair methods to further drive up the price of digital ads. This means that businesses who use Google ads are paying a higher cost per click than they should be.
This inevitably led to a discussion of AI during the case, which factored into increased advertising costs for users of Google.
No Jumping To Conclusions
Now, let’s not get ahead of ourselves just yet: upon hearing the ruling, Google immediately appealed it. The appeal process has already begun: this means the landmark case will be reviewed in an appellate court.
It’s very possible that the case itself could be partially or fully overturned. It’s also possible the monopoly ruling could remain, although whatever restrictions, fines, or government-issued changes that the court had in mind are as yet unknown.
In any case, it’s tedious having to “wait and see”. But, given the potential enormous repercussions of a successful ruling, it’s not something that you’d want to react to too quickly.
What It Means For Your Business
If the case remains as a monopoly even after appeal, then it may be in your best interest to start researching alternative search engines to advertise on.
This is because it is likely that the district court will administer some types of restrictions to Google’s PPC portfolio and bidding system, allowing other engines like Firefox and Bing to catch up as it were.
On the other hand, you may want to consider preparing an even more aggressive Google PPC campaign in anticipation of the appeal. This is because the court may instead adminster policies that reduces the cost of Google ads, effectively allowing you to get more leads.
In either case, we can’t know for certain until:
- The appeal is resolved and;
- What, if any, restrictions will be placed on Google ads to resolve their monopoly
Regardless, getting ahead of these decisions early and researching alternative search engines is a great place to start before the competition floods in. Some alternative platforms you may want to start with are:
- Yahoo!
- Bing Ads
- LinkedIn Ads
- Mozilla Ads
- Tik Tok Ads
- Internet Explorer
What Does Financial Success Mean For Your Business?
Although this has been a landmark case, it will still be many months before a resolution or repercussions are felt. The good news is that you’re already preparing for the future.
The best way to future-proof your business is to ensure yoru finances are on track and your tax bills are paid on-tim and accurately.
Call our team today to learn how we can hep your business finances thrive.