Alphabet CEO Sundar Pichai gestures during a session at the World Economic Forum (WEF) annual meeting in Davos on January 22, 2020.
(Photo by Fabrice Coffrini / AFP) (Photo by Fabrice Coffrini / AFP Ferzi News)
Google CEO Sundar Pichai says the company has offered a competitive platform that, according to an executive meeting before the House Entrepreneur Subcommittee on Wednesday, lowered advertisers for prices while giving consumers more choices. .
“A competitive digital advertising market is well liked by publishers and advertisers, and therefore consumers,” Pichai said. “Competition in advertisements for Twitter, Instagram, Comcast and others – for example – has helped lower online advertising costs by 40% over the past 10 years, with these savings passed on to consumers through lower prices. “
However, Google remains the largest digital advertising platform by market share. Last year, Google placed 31.6% of total digital advertising spend with Facebook and Amazon at 22.7% and 7.8% respectively, according to eMarketer.
Pichai’s statement comes after Amazon CEO Jeff Bezos, Apple CEO Tim Cook and Facebook CEO Mark Zuckerberg were joined to testify before the House Antitrust Subcommittee on Wednesday. The committee’s investigation report and legislative proposals for how to address antitrust issues in the digital marketplace are expected to result. Potential laws may inform how state regulators may curb anti-competitive practices in the future.
The most common critics of Google ask questions about whether it favors its products or suppresses competitors through its dominance in search and digital advertising. The company has already faced fines from the European Commission’s Competition Authority over its shopping search tool and Android mobile operating system, which Pichai said in its prepared remarks that it was “deliberately made” to encourage competition.
Pichai cites Amazon’s Alexa, Twitter, Snapchat and Facebook-owned WhatsApp as competing platforms where people get information.
“In areas such as travel and real estate, Google faces strong competition for the search queries of many businesses that specialize in those fields,” Pichai said in written commentary. “Today’s competitive landscape is not like it was seen 5 years ago, let alone 21 years ago, when Google launched its first product, Google Search. People have more ways to find information than ever before.”
Google is facing an antitrust probe with a Google company search and investigation of Android businesses by the Justice Department and 50 lawyers in general. According to a recent report by The Wall Street Journal, a lawsuit could result in issues ranging from its search product to the digital advertising market.
The company’s role in allowing misinformation to go viral on platforms such as YouTube will also be questioned, with it struggling to contain particularly damaging information.
Disclosure: Comcast owns NBCUniversal, the parent company of CNBC.
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