Earlier this month, a US judge ruled that Google violated antitrust laws by investing billions to intentionally create an illegal monopoly. For those of us in the industry, this ruling is long overdue, and it’s about time that Google’s default search engine status is now under threat.
This ruling will now ensure a second trial is in motion to address Google’s market dominance, potentially leading to the breakup of Google’s parent, Alphabet—impacting the global online ad landscape, including at home in Australia.
Google paid $26.3 billion in 2021 alone to ensure that its search engine is the default on smartphones and browsers – also controlling about 90% of the online search market and 95% on smartphones.
Now that Google and Alphabet monopolistic practices have officially been exposed, it’s clear they’ve prioritised profits over people. As the giant develops AI for its own benefit, it’ll be interesting to see if Alphabet is broken up, proving that monopolies on such ubiquitous platforms are never a good idea.
While change may take years, it’s crucial to get to grips with how this will impact the backbone of Australia’s economy – our small business communities operating regionally, in our cities and figuratively, in our backyards.
Over 30 years ago my business partners and I created a local phone book directory for SMBs, which evolved into the local business marketing platform that is Localsearch today. Over the years, we’ve supported hundreds of thousands of Aussie businesses to thrive and grow.
We know better than anyone – the last thing an SMB owner needs on their plate is to worry about being Google’s top search result. With their hands full managing suppliers, customers and technology that’s advancing before our eyes every day, they can’t compete where Big Tech plays. For years, companies like Google have rewritten the rules to suit themselves, brushing off minor penalties. Competitors like GoDaddy and DuckDuckGo have also struggled to keep up.
More recently, Google hinted at major changes to organic searches and sponsored content, prioritising AI summaries from its Gemini product (previously named Bard, and we all remember how that started) and other ‘innovative’ implementations. At Localsearch, we’re already working on solutions to counter this for our customers, but it’s disappointing we even have to.
This threat to the power balance is more dramatic than it sounds. If Alphabet is forced to break up with Google, that’s a win for the smaller folks who have the public’s interest at heart.
True innovation in the tech space thrives when competition is fair and open. Small and medium-sized businesses are often the true pioneers, bringing fresh ideas and community-driven solutions that larger companies overlook in their pursuit of scale. A more level playing field, free from monopolistic control, would allow these businesses to innovate more freely, benefiting consumers with better products and services.
This competition could spark advancements that make technology more inclusive and accessible, particularly for those outside of major cities or underserved communities. The potential break-up of Alphabet could open the door to a new era of creativity and opportunity in digital spaces.
Adam Hargraves is CEO of Localsearch.