We are facing a delicate moment for one of the most famous companies on the planet. And this isn’t the first time it’s happened!
The gigantic Google is in trouble! Or at least it seems that way, and somehow, this involves all of us, because who doesn’t use Google nowadays?
The controversy affecting the tech giant stems from Google’s Vice President of Ads Products, Jerry Dischler, stating that the company made changes to ad auctions to generate more ad revenue. These changes led to price increases of up to 5% for search ads. The issue, which affects not only Google but also advertisers and users, raises ethical questions about transparency and fairness in the online advertising market. Online advertising relies heavily on the auction system, where advertisers compete for users’ attention. If these auction changes favor Google without considering competition, there’s a risk of erasing equality in the market and limiting options for advertisers.
However, this isn’t the only legal challenge Google has had to face throughout its existence. One of the most concerning problems it faces is an antitrust lawsuit alleging abuse of its dominant position in the search and online advertising market. The U.S. Department of Justice alleges that the company illegally maintained a monopoly by paying substantial sums to web browsers and phone manufacturers to make Google the default option for users. This limited competition in the search market and raised concerns about the concentration of power in the hands of the company with the giant G.
In addition to antitrust issues, Google has faced a series of legal and regulatory problems over its lifetime. These include concerns about data privacy and consent for the collection of personal data, disputes related to the “right to be forgotten,” copyright infringement and piracy on its video platform (YouTube), accusations of deceptive or fraudulent advertising, controversies over content moderation on its platforms, and criticism of its tax practices, including alleged tax evasion.
In the local context, in Argentina, there’s a particular situation where Google charges an additional 97% if advertising campaigns are conducted abroad. This pricing policy has generated significant annoyance in the Argentine advertising market and highlighted another element of controversy regarding Google’s practices in the country.
In conclusion, we can say that the very competitiveness of the system and the self-demand of only seeking to increase metrics, in this case, ad revenue, raises ethical and regulatory concerns in the world of search engines. As we have seen, this is not the first time it has happened. From here, we wonder how much this incident will affect Google’s image? Undoubtedly, it’s not something positive.