Why Google is Not A Monopoly?
Google is the most used search engine in the world, dominating more than 90% of the market share. Its success has led some people to believe that it is a monopoly. But is it true? In this blog post, we will look into the reasons why google cannot be considered a monopoly.
What is a Monopoly?
A monopoly is a situation where one company has complete control over a particular market or industry. This can lead to a lack of competition, which can be harmful to both consumers and other companies. When there is a monopoly, the company has the power to set prices, control supply and demand, and limit innovation.
Why Google is Not A Monopoly?
Firstly, Google does not have complete control over the search engine market. Although Google dominates the market, there are still several other search engines such as Bing, Yahoo, and DuckDuckGo, that compete for market share. According to Statista, as of July 2021, Google has 92.71% of global market share, while Bing has 2.82%, Yahoo has 1.4%, and others have just over 2% combined.
Secondly, Google does not have a monopoly over online advertising. While it is true that Google is the largest online advertising company in the world, there are other players such as Facebook, Amazon, and Twitter that compete with Google. According to eMarketer, in 2020, Google had a 28.9% share of the digital advertising market, followed by Facebook with 25.2% and Amazon with 13.3%.
Thirdly, Google does not have exclusive control over any essential resources. A company can only be considered a monopoly if it controls essential resources, such as oil, gas, or electricity. Google’s success is not based on any scarce resource but rather on its superior technology and the company’s investment in research and development.
Fourthly, Google has faced competition investigations by regulatory agencies around the world. Google has been under investigation by the European Commission since 2010 on allegations of anti-competitive behavior. In 2019, the Department of Justice, along with 50 state and territory attorneys general, opened an antitrust investigation against Google. These investigations show that Google is not a monopoly as regulatory bodies are making active efforts to ensure a competitive market.
What Defines Google’s Success?
Google’s success is a result of the company’s focus on delivering the best search results to its users. According to Google, its search algorithm is designed to reward quality content that is relevant to the user’s search query. Google also invests heavily in research and development to improve the search experience for users.
Moreover, Google’s success is due to its ability to monetize its search engine. Google’s advertising platform, AdWords, is the most popular online advertising platform in the world. AdWords allows businesses to place ads on Google’s search results pages based on relevant keywords. This has allowed Google to generate significant revenue from its search engine.
Conclusion
Although Google dominates the search engine and online advertising markets, it cannot be considered a monopoly because it still faces competition from other companies, does not have exclusive control over any essential resources, and it has been the target of regulatory investigations. Google’s success has been built on its focus on delivering the best possible search results and its ability to monetize its search engine. Ensuring a competitive market is essential, and we should continue to support regulatory efforts to maintain competition in the tech industry.