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“Stacking the Tech”: Google’s Antitrust Hearing



Google executive George Harrison and three other panelists opposed the Senate Judiciary Committee and Antitrust Subcommittee at Stacking the Tech: Tech on Stacking on September 15: Google competes for online advertising Did it adversely affect you?

The first panel consisted exclusively of Donald Harrison, President of Google’s Global Partnerships and Corporate Development. Senators on both sides of the island took turns aiming for Google and its market practices.

Senator Mike Leigh of the Commission began the conversation saying that online advertising is an incredibly complex business and touches everyone on the Internet. The technology associated with connecting advertisers and publishers has evolved rapidly over the last decade, and the expansion of online advertising has enabled even the smallest website owners to monetize their content, driving a surge in online content. it was done.

Ranking member Senator Amy Crobchars’ opening remarks reflected a similar sentiment to Lee’s.

On the publisher side, Google has privileged access to advertising data to notify your bidding strategy. Google also effectively controls the ad auction process, which is the process of placing advertiser ads on publisher sites. According to Klobuchar, Google dominates all markets for services on both sides of the advertising technology stack.

In his opening remarks, Harrison sought to highlight the positive impact of Google’s growth and market practices.

Harrison explained that online advertising prices in the United States have fallen 40% since 2010.

In addition, Harrison sought to establish that advertising is a small part of Google’s business and its share works in a highly competitive market.

The advertising technology portion of our business accounts for a small portion of our advertising revenue, and we share most of that revenue with our publishers. The advertising technology space is crowded and competitive. Harrison said we are competing with Adobe, Amazon, AT & T, Comcast, Facebook, Oracle, and Verizon.

Lee began by asking Harrison about a recent federal block of conservative sites. Later, Republican Senators Josh Hawley and Ted Cruz made similar analyzes and complaints about Google’s advertising practices, especially with regard to federalists.

In response to concerns about forced content management by advertisers, Harrison sought to show that Google did not unilaterally ban ads from running on these websites.

Harrison said, they [websites] There are three options. You can choose not to show ads, moderate, or place comments behind the wall to show no ads.

The conversation seemed to move away from the nature of antitrust hearings, but Mr. Holy took the conversation home and said it was exactly what Senator Lee pointed out. It’s the extraordinary market power that makes this possible, basically that small, independent publishers call for coordination to build the site and moderate or unused third-party content. You can design management policies. Nevertheless, you can do this to adopt a policy or effectively block the revenue stream.

A frequently cited survey throughout the hearing was conducted by the UK Competitive Markets Authority, CMA, and found that Google was the main market power. The control of the company lies with the advertiser’s supply platform, demand platform, and advertiser advertising server. Harrison continued to challenge UK statistics because he believes the Commission’s definition of market share is too narrow.

Harrison said. When people search for things, they sometimes use our products, it’s a common search engine, but more often they are of many other types to find what they’re looking for. Use apps and experiences.

Harrison then presented evidence from the commercial search market, saying that more people go to Amazon than Google, and 70% of commercial queries start on platforms other than Google.

Disagreements over the UK CMA report have always been a theme throughout the hearing. Harrison consistently disagreed with the analysis conducted by CMA, stating that the numbers in the report were not Google’s consensus.

The second panel consisted of industry expert Adam Heimlich, CEO of Carice Custom Algorithms. David Dinielli, Senior Advisor at Omidyar Network, Beneficial Technology. And Carl Szabo, Vice President and Legal Advisor of Netchoice.

Heimrick praised the Antimonopoly Commission, and antitrust investigations provided clues about Google’s strategy for ad exchanges, Google said ad exchange market efficiency as a threat to Google’s key business advertising. It seems you saw it.

Heimlich accuses Google of using the power of the market to curb innovation and itself, never innovating or keeping pace with innovation in other markets.

Heimrick says whether Google competes with other big tech companies is the harm they have done to publishers, measurement companies, platforms, small businesses like me, and the $ 50 billion open web market. He said it was irrelevant.

Dinielli took a similar position to Heimlich and Klobuchar at previous hearings, with his claim that he was unaware of other market-dominant companies and industries like Google.

Through a series of acquisitions and vertical integrations, Google occupies all tiers of this advertising technology stack, with 90% market share for its most important features. From an antitrust lawyer’s point of view, this is a big danger signal, Dinieri said.

Szabo stood on Google’s side and took the other side. Szabo also claimed that the CMA report from the United Kingdom was seriously flawed.

It [the report] The definition of the market has become very narrow, resulting in a search for Google’s advantage.

Dinielli argues that Google’s dominance affected advertiser pricing, and Szabos argues that there is no consumer harm required by antitrust consumer welfare standards. Responded to.

Looking back at the evidence from the UK CMA report, I’ve heard that prices have fallen, isn’t that a good thing? Yes, but if they didn’t do that, they wouldn’t know what they were doing.

The hearing has sparked an exciting debate over Google’s claim to dominate the advertising and search markets, but little is clear about the specific remedies that Congress may offer in the future. did.

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