📢 Google under major pressure: Major changes to online advertising and a possible split of the tech giant!
Canada's Competition Bureau has launched a landmark case against Google $GOOGL for allegedly abusing its dominant position in the online ad market. The case reflects the growing pressure on tech giants and their practices that many experts say stifle competition, innovation and a fair marketplace 💻⚖️
The authority blames Google:
Forcing the market to use its advertising tools - Dominant position allows Google control automated auctions and reduce the chances of competition.
It favours its products - For example, by giving its own systems preferential access to key advertising space.
Reduces innovation and revenue for publishers - Google allegedly manipulates ad auctions, which increases advertising costs and reduces partner revenue.
This strategy, according to the Authority, distorts competition, harms companies and consumers and limits free choice in the market.
🛠 The Canadian authority is calling for major action:
Divestment of two key advertising toolsthat Google uses to maintain market control.
Prohibiting anticompetitive behaviourto restore fair competition.
Significant financial penalty - aimed at forcing Google to comply with competition rules.
Company Google has responded to the charges by arguing that its advertising tools help businesses of all sizes reach customers effectively. It also argues that there is still intense competition in the market.
🌐 Similar pressures in the US
The US Department of Justice is currently dealing with a lawsuit that could fundamentally affect the future of Google:
Selling Chrome - The world's most used browser plays a key role in the search engine connection.
The Android split - Google aims to separate search and commerce Google Play from the mobile operating system, reducing its control over the market.
Changes to search engine AI features - A feature that generates answers to queries directly in the search engine has faced criticism from publishers because it limits traffic to their sites.
According to sources, the future of Google should be clear by August 2025.
What do you think about Google's current problems? How much will it affect the stock price, will we get interesting buying opportunities?
$GOOG is one of my biggest positions in my portfolio. I sincerely hope they keep the Chrome one, as otherwise it would be a very big deal.
I'm almost certain that Google won't take the bait and somehow share, that would be a bad scenario. Plus the company has great diversified revenue, so the Chrome thing wouldn't hurt it that much.
I bought in on the downturn, it's definitely a risk now, but I hope there's no split.
If this were to actually happen, it would affect not only the company itself, but also the entire market and other technology and non-technology companies. I'm curious about it, but Google will continue to be in my portfolio :)
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We'll see how it turns out, but in any case it would certainly have a major impact on society.