Here’s How to Fix It.
Most people know that Google dominates the online search market, but did you know that the company has become the biggest player in the digital ad market? That’s a problem not only for consumers, but potentially for society as a whole, argues former digital advertising executive Dina Srinivasan.
Last year, Srinivasan gained attention for her paper “The Antitrust Case Against Facebook,” which explained how the tech giant’s market dominance can harm the public, even though the product is ostensibly free. Now she focuses on Google and the enormous advertising empire that has grown into the company’s biggest money-maker. In her new paper, “Why Google Dominates Advertising Markets,” Srinivasan analyses the digital ad market and argues that Google’s monopolization and the giant regulatory gaps on matters like transparency and conflicts of interest have created an anti-competitive environment that can be harmful to newspapers, consumers, and, ultimately, democracy itself. She proposes that fairness can be restored by using principles applied to financial market regulation.
Lynn Parramore: After years of inaction, we’re seeing lots of headlines on antitrust actions against Big Tech. The Federal Trade Commission and the attorneys general of 48 states and territories have filed antitrust cases against Facebook, charging that it is able to abuse users’ data and violate their privacy. There are also several parallel suits against Google’s search dominance and chokehold on the advertising market. A good deal of the impetus to these suits comes from
— source ineteconomics.org | Lynn Parramore | Feb 22, 2021