The recent antitrust ruling against Google marks a significant digital search and advertising shift. Here at Dealer Teamwork, we’ve been asked questions such as, “Does this even matter?” or “How does this impact me?” As a seven-year
Google Premier Partner, standing among the top 3% of Google Partners in the United States, this isn’t our first rodeo. And while we certainly don’t have all the answers, we sat down with our VP of Search, Eric Miltsch, to get some high-level insights specific to what automotive dealers need to know.
Here are the five biggest takeaways from the decision and its implications:
Monopoly Confirmation
U.S. District Judge Amit Mehta concluded that Google has maintained an illegal monopoly over the online search and advertising markets. The ruling highlighted Google’s extensive market share, controlling 90% of the general search market and nearly 95% on mobile devices. Google achieved this by creating strategic partnerships with Apple and other companies to be the default search engine on their devices. However, this news alone shouldn’t come as a shock to anyone familiar with their practices.
Exclusionary Practices
The court found that Google’s agreements with Apple, Samsung, and other partners were exclusionary. This meant Google effectively blocked competitors from gaining a foothold in the fight for search engine market share. These deals, worth billions annually, confirmed that Google’s search engine was the default among devices. This alone stifled innovation and general competition, and again, shouldn’t really come as a surprise to anyone.
Impact on Search Ads Market
Beyond search dominance, Google also leveraged its position to dominate the search ads market, disadvantaging competitors like Microsoft. This allowed Google to inflate prices for search ads, further entrenching its market position. This advantage may be the confirmation needed for many who believed this would happen or was happening.
Historical Context and Future Fixes
This ruling is the most significant antitrust action since the case against Microsoft in the late 1990s. It sets a precedent for future actions against tech giants like Meta, Amazon, and Apple. The focus now shifts to potential solutions, with possibilities ranging from structural changes to operational restrictions aimed at fostering competition and innovation. Expect to see different business units or divisions within the organization to lessen the appearance of concentrated control or power or competition and markets.
Appeal and Ongoing Litigation
Google plans to appeal the decision, arguing that its search engine’s success is due to its quality and not anticompetitive practices. However, the ruling is a crucial victory for the Department of Justice and state attorneys general, reinforcing the relevance of antitrust laws.
Impact on Average Users and Advertisers
For the Average Google User
- Potential for More Choices: As competition is encouraged, users might see an increase in alternative search engines. This could lead to more innovation and improved search quality and privacy features.
- User Experience Changes: Depending on the remedies imposed, users might experience changes in their devices’ default search settings, requiring more manual adjustments to their preferences.
For Advertisers and Agencies
- Ad Market Dynamics: A more competitive environment could result in more varied and potentially lower advertising costs. Advertisers might benefit from having more platforms, leading to more strategic opportunities.
- Regulatory Scrutiny: Increased regulatory scrutiny could mean stricter compliance requirements for advertising practices, potentially affecting how ad budgets are allocated and managed.
As expected, these new court decisions will drive short and long-term change, promoting a more competitive environment. The ultimate goal is that these changes will benefit consumers and advertisers, not only Google.
How Dealer Teamwork Views This Ruling:
Dealer Teamwork will always aim to deliver the best guidance, support, and overall performance for our automotive dealership clients’ Google-based digital marketing campaigns by understanding the latest industry and product updates. Here’s how:
- Stay Informed on Legal and Market Changes.
- As a Google Premier Partner, we have the communication channels and processes to deliver proactive communication and support for our dealer partners.
- Leverage Data and Analytics.
- Our detailed set-up and management processes rely heavily on the accurate data provided by platforms such as GA4, Google Ads, Google Search Console, and our advanced tracking methods.
- Enhanced Ad Campaign Management.
- We will continue reviewing and optimizing ad campaigns and overall search efforts, including different budget allocations, ad variations, and the best possible audience targeting.
- Heightened Focus on Local SEO and Maximizing Organic Strength.
- Our Total Search™ approach is the foundation for our automotive dealers’ campaigns, which are optimized to maximize their local search presence and the quality of their users’ mobile experiences, driving more sales and service opportunities.
- Continuous Learning and Adaptation to The Market.
- Our teams remain vigilant in staying updated on current search trends, consumer behaviors, and industry changes.
Here at Dealer Teamwork, we pride ourselves in successfully ensuring our automotive dealers receive cutting-edge guidance and support, maximizing their performance in Google-based digital marketing campaigns.
