With a staggering revenue of $307 billion in 2023, Google’s search engine remains its one of the most lucrative asset, generating billions of dollars. Regulatory bodies argue that Google’s overwhelming presence in the general search market, where it contends with competitors like Microsoft Bing and DuckDuckGo, borders on monopolistic behavior. Google, however, insists it competes against a variety of specialized search engines, such as Amazon for shopping, Kayak for travel, and OpenTable for dining.
Researchers from institutions including the University of Zurich and Northeastern University undertook an empirical analysis to validate Google's assertions. Using data from U.S. residents’ web browsing activities over five months in 2020, they scrutinized search behaviors across Google, Bing, and various vertical search engines.
Searches were classified into 90 distinct verticals, covering areas like Shopping, Health, and News. The study aimed to determine Google’s true market share in these specific segments, assessing whether users viewed Google Search and specialized engines as interchangeable.
The study found that Google’s products dominate in 21 of the top 30 vertical markets, capturing over 50% of searches. These markets alone account for 94.1% of all search activity. Notably, users initiated more than half of their search sessions on Google’s platforms in 24 segments, underscoring Google's role as a primary entry point for online searches.
Despite Google's claims, the study indicates users do not see Google Search and vertical search engines as direct substitutes. Even when utilizing vertical search engines, many sessions started with a Google product, highlighting Google’s significant influence in directing users to its vertical offerings.
These insights carry considerable weight in the context of antitrust litigation. The data suggests Google may be leveraging its dominance in the general search market to bolster its position in specific verticals. In the Travel segment, for instance, Google garnered 51% of the searches among participants, potentially skewing results in favor of Google Flights and Google Hotels.
Regulatory bodies have already targeted Google’s practices in vertical markets such as Shopping and Travel, leading to significant actions like the European Commission's penalties against Google Shopping. The study’s outcomes reinforce the call for continued regulatory oversight and the consideration of both structural and behavioral remedies. Proposed measures include separating Google Search from its vertical search engines and restricting exclusive contracts.
This comprehensive analysis of Google’s market share in vertical search segments offers fresh perspectives on the digital search landscape. It challenges Google’s narrative of facing substantial competition from specialized search engines, highlighting the necessity for rigorous regulatory measures to address Google’s market power. As the debate over Google’s influence continues, this research provides critical data for shaping future antitrust policies and ensuring a competitive digital marketplace.
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by Asim BN via Digital Information World
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