On Monday, August 5th, a federal judge ruled that Google has been illegally maintaining monopolies in both the search and advertising markets. The ruling stated that Google’s exclusive agreements with major device manufacturers like Apple and Samsung, and popular web browsers such as Safari and Firefox, were illegal. These agreements ensured Google was the default search engine across these devices and platforms, limiting market entry for competing search engines and reducing their visibility to users. As a result, these competitors struggled to gain market traction or challenge Google’s market dominance.
There are multiple scenarios that could unfold from this ruling, but Google has made it clear that it plans to appeal the decision.
While the ruling is significant, the lengthy appeals process (which is expected to take up to five years) means that there will be no immediate changes to Google’s services. Even if penalties are enforced, consumer habits tend to take a long time to change, and Google’s existing market share (~90% according to Statcounter) and reputation as the leading search engine mean there is no immediate need to alter current marketing efforts.
However, at WITHIN, we always advise diversifying your marketing strategies to reduce reliance on any single platform. Exploring and experimenting with alternative search engines like Bing or Yahoo, along with diversifying across other channels, can help mitigate risks from potential disruptions in Google’s services. Additionally, WITHIN’s Partnerships team will be identifying new search engine startups to ensure we stay ahead of market trends and maximize our clients marketing budgets.
If Google wins its appeal, its business practices will largely stay the same. However, ongoing scrutiny and potential small adjustments are likely.
If Google loses its appeal, the court could enforce significant penalties. Google may be forced to restructure its business or face limitations on its market power. This could lead to increased competition from other search engines, degradation in Google’s data prowess & algorithmic abilities to drive marketing results, or even lower advertising costs.
As mentioned above, there is no immediate impact on your business. However, adopting a measurement model based on incrementality can help your brand pinpoint which marketing efforts drive additional sales or results. This will enable your brand to invest in a diverse range of revenue-generating channels, reducing overall reliance on search.
Additionally, diversifying your search engine marketing efforts and exploring alternative platforms such as Bing, Yahoo, and DuckDuckGo can help reduce dependency on Google while reaching different audiences.
If you’re looking to strategically diversify your search engine marketing efforts, WITHIN can help. Send us an email to learn more about our services.
Thank you. Check your email for details on your request.
