Is it a good thing that Google is being outed as a Monopoly?
Is it a good thing that Google is being outed as a Monopoly?
And what does this mean - for the rest of us?
In recent months, two significant events have highlighted the ongoing issues of monopolistic practices and ethical concerns in the tech industry. And perhaps more importantly what this means for the likes of us. The consumers and the societies living with such massive tech companies.
Two things really hit home for me — which might at first seem distantly related.
One, The U.S. District Court’s ruling against Google — which as a keynote speaker on technology and AI, I was asked to go on the radio to discuss.
And two, the revelations about Nvidia’s data scraping practices, ,which I would love to be asked on radio to discuss — but the latter might be not quite understood and so not deemed as a relevant news story. Both underscore the need for greater scrutiny and regulation in the tech sector.The irony being is that — we have a chance to change one of them — but not the other. As I joked in my radio interview
“What do you call a 800 LB Gorilla — sitting in the corner — you call it … Sir”
The analogy with large global tech companies that make billions of dollars in days can not be underestimated. The fact is, these companies were not meant to be allowed to get so big. And now they are it’s a bit too late… But how did they get soooo big?
Google’s Monopolistic Practices
The U.S. District Court recently ruled that Google has maintained an illegal monopoly over the online search market, leveraging exclusive agreements with major companies like Apple and Samsung to secure its position as the default search engine on their devices. This setup has allowed Google to control approximately 90% of the search engine market globally, with even higher dominance on mobile devices
The court’s decision reflects concerns that Google’s dominance stifles competition, limits consumer choice, and hampers innovation. This ruling is not just a legal victory but a crucial step towards ensuring a fair digital marketplace
The Antitrust Ruling: A Critical Juncture
The recent ruling against Google emphasises the company’s overwhelming control over the global search market. As of August 2024, Google commands a staggering 90.91% of the market share worldwide, with even higher dominance on mobile devices at approximately 95.4% — which is HUGE.
Such a monopoly isn’t just about having the best product; it’s about strategic manoeuvres that keep competitors at bay. As the court found, Google leveraged exclusionary agreements with major companies like Apple, ensuring its search engine remained the default on most devices. This practice not only hindered competition but also potentially stifled innovation. They essentially paid about £1 Billion a month to become that 800 LB gorilla over time…
Judge Amit Mehta’s statement,
“After having carefully considered and weighed the witness testimony and evidence, the court reaches the following conclusion: Google is a monopolist, and it has acted as one to maintain its monopoly,”
This statement by the ruling judge encapsulates the gravity of the situation. As this dominance extends beyond mere market control; it influences how data is collected and used, affecting everything from consumer behaviour to AI development.
And it is this last bit which I find the most interesting, as if data is the new oil — then Google has been data mining a HUGE advantage for many years. Which ironically, for different parts of Google (and their parent company Alphabet) might give them a huge advantage.
Google’s AI Innovations
With all this data and power Google is not standing still. With it’s new AI seeming to be one of the best in the market. The company is using this Gemini model to integrate new AI features into its Chrome browser, enhancing user experience with more personalised and intelligent search capabilities.
These updates include advanced search functions and better integration with other Google services, aimed at making web navigation smoother and more intuitive. And perhaps not a minute too soon. As on the horizon we now have AI search to think about…
The Rise of AI Search Engines
Adding to the complexity, OpenAI is developing a new AI-powered search engine called SearchGPT. This prototype aims to provide fast and relevant answers, potentially transforming the search industry. However, early versions are expected to have glitches, and the AI’s programming might introduce biases based on the developers’ perspectives. For more information on this read Jeff Kagan’s great piece here…
The introduction of SearchGPT raises questions about how traditional search engines like Google, Safari, and DuckDuckGo will adapt or compete. Let alone keep up their monopoly on how we work…
Lest we forget….
Google is not alone — as I alluded to in my radio interview. A lot of the main tech companies have done (and been or are being done) for similar practices. Historically, several tech companies have faced significant antitrust actions, shaping the industry’s landscape:
- AT&T (1956–1982): AT&T’s monopoly over phone services led to its breakup into regional companies known as the “Baby Bells”
- IBM (1969–1982): IBM was accused of monopolizing the computer market, leading to a lengthy legal battle that ended with the case being thrown out, but not without significant scrutiny
- Microsoft (1993–2007): Microsoft faced numerous antitrust cases, primarily concerning its bundling of Internet Explorer with Windows, which led to rulings both in the U.S. and Europe requiring changes to its business practices
- Intel (2005–2009): Intel was fined significantly for anti-competitive practices against AMD, totaling $2.7 billion from various rulings
- Apple (2012–2014): Apple was involved in a major antitrust case over e-book price fixing, resulting in a $450 million settlement
And this will happen again. As the next area for potential monopolisation is even more worrying for the future of work. That of AI.
Nvidia’s Controversial AI Practices
Simultaneously, Nvidia has come under scrutiny for its Project Cosmos, where the company reportedly scraped vast amounts of data from platforms like YouTube and Netflix to train its AI models. Internal documents leaked to 404 Media reveal that Nvidia used various methods to avoid detection, including virtual machines and IP rotation. This approach has raised serious ethical and legal questions, particularly as it involves using copyrighted content without explicit consent
Nvidia’s actions highlight the broader issue of data usage in AI training. The company’s defense claims compliance with copyright laws, but the ethical implications are significant. The unauthorized use of data, especially when done covertly, poses a risk to the credibility and trustworthiness of AI technologies. It also raises questions about the responsibilities of tech giants in handling data ethically and transparently
The Broader Implications
These cases underscore the critical role that regulation and oversight play in the tech industry. As companies like Google and Nvidia continue to push the boundaries of technology and data use, it is essential to ensure that these advancements do not come at the cost of fairness, privacy, and ethical standards. The outcomes of these cases could set important precedents for how digital markets and AI technologies are regulated in the future.
Or as Seth Godin put it so beautifully in his blog Misunderstanding bigness
“IBM spent a fortune fighting calls for them to be broken up. So did AT&T and Microsoft.
In all three cases, there’s plenty of evidence that they would have been better off if they had simply broken themselves up. Microsoft is still recovering and IBM never will.
One computer company, one phone company, one software company, one search engine…
It doesn’t last.
If these companies had intentionally divided up, customers would benefit, so would shareholders and most of the leadership of each organization. Perhaps a few dozen people had a lot at stake in maintaining a mythical sort of scale, and they wasted time and money trying to maintain it.
The company is more than just the few people who run it. And the benefits the organization creates extend beyond the people in the C suite.
In the short run, enforced dominance can offer rewards, both financial and related to ego, mostly to senior management.
But the short run is fairly short, and the resilience, productivity and utility that come from agility and serving customers and employees more effectively is worth the transition.”
As companies like Google and Nvidia push the boundaries of technology and data use, it is essential to ensure that these advancements do not come at the cost of fairness, privacy, and ethical standards. This is what I talk about in my keynotes speeches about technology, AI and the future of work.
The outcomes of these cases could set important precedents for how digital markets and AI technologies are regulated in the future. Ironically, not just to protect our interests as consumers and as a society but also their own as companies that survive the Fifth Industrial Revolution.
About the Author
Keynote speaker, professional speaker, Ted X talker, serial tech startup founder, ex marketing agency owner, digital trainer, and now author and media spokesperson Dan Sodergren’s main area of interest is the future of work, technology, data and AI
In his spare time, as well as being a dad, which comes first, Dan is a digital marketing and technology (and now AI) expert for TV shows and the BBC and countless radio shows.
Occasionally donning the cape of consumer champion on shows like BBC WatchDog, the One Show and RipOffBritain and being a marketing tech specialist for SuperShoppers and RealFakeAndUnknown and BBC Breakfast.
He is also a host and guest on podcasts and webinars speaking as a tech futurist. And a remote reporter / content creator for tech companies at tech events and shows. His main interest is in the future. Be that the future of marketing, or the future or work or how AI and technology will change the world for the better as part of the #FifthIndustrialRevolution
Find out more about him over on bit.ly/DanSodergren
And his books on https://futureofwork.gumroad.com
And his course on www.aimarketingcourse.co.uk
And his new idea: The AI Teacher Course.
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Future Reading and References
My interview on the BBC radio is here