Does Google have any escape route?

Everywhere Google has been Inviting problems for its leadership in the search industry, what the rule makers say, it is simply a monopoly. Around the world, nine out of every ten web searches run on Google—but that kind of profitable dominance also invites scrutiny and suspicion.

Strategic investment done by Google, for leveraging its search engine, YouTube, along with acquisitions of advertising tech is to become the number one player in the digital ad market. Today, YouTube accounts for 11% of Alpha’s overall revenue. The effects of Google having dominance in this market has led to predictable monopolistic issues and this brings the global crackdown on google.

Various studies say that at least 50% of every dollar spent in digital channels now goes to middlemen like Google, instead of the publishers showing the ads. Most major brands and publishers now openly say that it's either very difficult or nearly impossible to buy or sell advertising on the internet without using Google’s products.

Today, Google controls access to advertisers that put ads on its search platform, as well as running the auction process for advertisers to get ads onto a publisher’s site. Startups and developers in India are stepping up lobbying against service fees levied by Google for services and digital items sold through its Play Store. Google also started allowing third-party payment services on Play Store apps in September this year.

Industry stakeholders, however, alleged that Google still charges a commission, which many consider too high and unfair. Rameesh Kailasam, president and chief executive of industry body IndiaTech, said Google offers a 4% merchant discount rate, even when a developer uses a third-party billing service.

Now it is facing trouble from the governments across the world. Some have either filed lawsuits against Google or are probing the company. Google has faced increased scrutiny with multiple antitrust investigations for its dominance in search, and has been fined $10 billion by the EU’s competition regulator. Regulators in the US, EU, Australia, France, Germany, Russia, UK, Canada and several countries are looking into Google’s practices on a serious note.

Recently, India’s antitrust agency, the Competition Commission of India (CCI), slapped penalties totaling ₹ 2275 crore , which is equivalent to $280 million on Google for abusing its dominance in the Indian mobile developer market and violation of competition law and its anti-competitive practices in multiple markets in the Android mobile device ecosystem.

Ashwini Vaishnaw, Minister of Communications and IT said that the Competition Commission of India (CCI’s) penalties on Google have followed due diligence and it is a good decision. The CCI has come up with such a decision after a long procedure, so I think it is good. whatever they (CCI) is doing is right.

S Mohini Ratna, Editor, VARINDIA