Posted by Matthew DeFalco.
In the Fox News article, “Google ad costs, not its alleged monopoly, irks businesses”, we learn that the United States Justice Department has filed a lawsuit against technology giant Google. The company is being sued for “anticompetitive behavior” when it comes to advertising and online searching. Unfortunately, this is actively taking place as the company’s dominance over online searching and advertising is growing by the minute causing harm to rival companies and consumers. This is because Google is allowed to charge ridiculous prices for advertisement due to the of the monopoly they hold—which is devastating many small businesses. Lastly, the article states that “ The more a company can pay, the more likely it will get a prized spot in search results” (p. 3) which prevents small businesses from being able to compete with these multi-million dollar companies. This article provides an inside look at what is actually happening to small businesses and what needs to be done to stop this anticompetitive behavior.
The writer gives insight from Bryan Clayton, a CEO of a small company, GreenPal, which helps homeowners find landscapers. Clayton noted that startups do not “have a million-dollar advertising budget” which makes it extremely difficult for owners to promote their business without giving a huge sum of money. In my opinion, I find that there is no reason as to why advertisements on Google should be so expensive, and I agree with the Justice Department for suing for anticompetitive behavior. This type of behavior means that there is no room for competitors when Google is controlling 90% of global internet searches. While this is great for Google’s bottom line, it is devastating to small businesses that cannot allocate millions of dollars for advertising.
With advertisements running between $50,000 and $100,000, Google is leaving business owners two choices: pay up or shut down. It is the unfortunate reality as our virtual society leaves small businesses who cannot afford advertisements in the dust. Something needs to be done, and it needs to be done quickly in order to prevent Google and other big corporations from getting even bigger than they are today. This is why it is essential that the court follows through with its suit and holds Google accountable so that small businesses have the opportunity to reasonably purchase advertisements which is proving to be a necessity in order to survive in our current society.
Matthew is an accounting and finance major at the Stillman School of Business, Seton Hall University, Class of 2023.