Can anyone quantify the harm to the public?
Can anyone quantify the harm to the public?
1. Ads cost more which raises the cost of doing business which raises the cost of goods.
2. It also makes certain borderline businesses infeasible -- there would be a whole class of businesses that don't/can't exist because they become unprofitable if you have to pay the ad monopoly/duopoly piper on top of normal expenses.
3. You could also argue that FB's continued dominance is another societal harm stemming directly from the alleged actions. If there wasn't an ad cartel, it would be easier to start new ad-based social media companies. (Wouldn't it be crazy if Google+ being neglected and then shutdown was a part of the negotiations between Google and FB?)
Lots of presumptions in the above, but I think a strong case could be made for each.
Same for
Amazon closing down A9 search
Google buying up Affiliate Networks and closing one down and basically banning affiliate from most of Google Search and
doing @#$#$-all with Google Shopping
100% Division between
Amazon - shopping Google - search Facebook - social
with outward illusion of 'rivalry'
Bezos is 4th angel investor in Google
Qunicy Jones in an interview says he used to have a weekly dinner with
Elon Musk, Google founders, Bezos
It's Qunicy Jones so no idea how reliable. But wouldn't that be interesting - if Google and Amazon founders were doing dinner every week or every other week
Google buying up affiliate networks and shutting them down is just plain consolidation of monopoly -- not conspiracy to divide up the market like the other actions. (It still deserves antitrust scrutiny, but for wholly different reasons.)
And weekly or bi-weekly dinners? Conspirators go to great lengths to have legitimate pretenses for any meetings. Trade shows are/were notorious for where these cartels get business done because everyone has a legitimate interest to be there. You also want plausible deniability.
“There’s the broader principal that if they’re setting prices illegally they may not be harming consumers right now but they certainly could. Second, consumers are hurt when innovation/competition is curbed, and that is what they allege the deal’s purpose is. The bottom line is that if there were illegal deals and they can prove there were, those agreements are per se violations and you’re not really looking at consumer harm. This is what the case is alleging.”
The brief actually sums this up really well. The claims start at p. 100, which is where they allege harms but they provide good explanations throughout.
Edit: Note about the the brief.
So monopolistic practices will harm the consumer (advertisers), but do they really harm end-users? Does a monopoly in farming harm the cows?
Businesses have somewhat standard target gross margins, customer acquisition costs (CAC), LTV:CAC ratio, etc. and will determine pricing based on multiples of these variables. Ad spend is often a huge component of CAC and this directly feeds into what companies need to charge their customers in order to use their products. The assumption that businesses will just eat a higher cost as sort of consumer benefactors is quite naive. I can assure you they won’t.
Drive down ad rates for non-google content, which severely hurt other digital publishers, like news sites. This made it basically unsustainable for them to survive on advertising. Thus, hurt local reporting and investigation, which in turn allows corruption and ineffective government, eventually hurting democracy.
I can spin up 1000 banners and text ads, but only spend a dollar. See the problem? They all still need review. Instead, GOOG relies upon AI and user reports, which they promptly ignore. Meanwhile, they serve up so many mobile redirects that publishers have to pay yet another vendor for protection against the crap Google doesn't vet. As a publisher I'm not really interested in showing my audience ads that automatically redirect them away from my content and to a scam $500 Walmart Gift Card landing page. Yet, if I want to have access to Google demand, I have to take the bad with the good. What choice is there? Exist and use Google, or pass on 60-90% of revenue while competing for the same audience?
As an advertiser I have to count on Google's reporting to tell me if I'm making positive ROI and they are constantly finding new ways to convince me that they made the sale. They bill for ads that were never seen and clicks that went to nowhere. Occasionally you'll see a discount on your bill for "Invalid Clicks" but you'll never see anything auditable about it. If I don't police my site list, I might end up funding websites run by terrorists and/or money launderers. Honestly how many US citizens who are shopping for cars do so on .ru domains? If you're not vigilant, that will be 20%+ of your ad spend. Yet, if not Google or Facebook, where can I reach a relevant, large audience with a small and variable ad spend? Not with DSPs, not with agencies, not with direct ad buys.
From a non-legal perspective, one of the big harms (I would argue) is in the destruction of the business model for small ad-supported publishers. Google was taking 80% of money that should have gone to them, and digital and physical publishers (like local newspapers) have had a mass extinction.
That said, out of the ashes, rises the phoenix. Substack and other subscription models owe their opportunity to Google's monopoly, and in many ways they're the mammals in this ecosystem of dying dinosaurs.
This seems to presuppose an alternate universe in which Google doesn’t exist but ad revenue is the same?
How do you quantify it? I don't know, how about we look at how much money Google is making?