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Sam Schechner, Kirsten Grind and John West write:Įngineers at Google have made changes that effectively preference YouTube over other video sources, according to people familiar with the matter. (Google says it does not take into account the number of views a video receives when ranking them in search, which is. (Search for “shoes” or “furniture” on Google, and then on Pinterest, and tell me which is more useful.)Įlsewhere, the Wall Street Journal on Tuesday reported that Google searches for videos ranked YouTube clips higher than rivals, even when the same clips posted to Facebook, Dailymotion, and other outlets were first posted on those sites, and have many more views. A large portion of searches are for commoditized information like weather and sports that hardly differ in their presentation on any one web page why not just put it all in search results? On the other hand, the idea that Google search has gradually worsened is not new, and for many types of query I find it persuasive. Google says consumers are simply no longer satisfied with the 10 blue links of days past, and that despite changes it continues to send a firehose of traffic to the open web. “The prices that consumers are paying are now higher because of Google’s business model,” Hickey said. He has raised prices, but his profit margins have shriveled. Organic results account for about 20% of visitors to his sites now, and he spends about 10% to 15% of his revenue on Google ads. But as Google increased ad slots to the top of results, that mix flipped. More than a decade ago, about two-thirds of Hickey’s Google traffic came from free, or organic, listings. Kevin Hickey, chief executive officer of Online Stores Inc., said these changes have forced him to spend more on Google search ads to keep traffic flowing to his e-commerce businesses. Shareholders demand growth.” At the same time, some businesses are now arguing that the mix of extra ads and answers provided directly within Google is eroding the fabric of the web. “Users want the best answers,” he writes. That has strengthened the case of those who argue that the company’s moves, whatever they have brought users in terms of convenience, have harmed competition.ĭe Vynck notes that Google, like any other company, has to manage the needs and wants of its customers and its businesses. These days, when people visit Google, the majority of them get the information they sought from Google itself, and never touch the open web at all. The effect of all those extra paid links has been to reduce organic traffic to many businesses and publishers, making life more difficult for them. In Bloomberg this week, Gerrit De Vynck looked at the company’s decision to ad a fourth ad to the top of search results in 2015. As Leah Nylen noted in that report: “Alabama is now the only state that is not investigating the company.”Īt the same time, reporters are mounting their own investigations of their own, and everywhere they look, they find Google giving preference to its own products over those of its competitors. Politico reported last week that California, which sat out an investigation led by 48 attorneys general, is preparing to mount its own inquiry into Google’s competition practices. Scrutiny into the company’s business practices has since accelerated. But there’s reason to believe the case against Google will land the soonest of any of them - in May, the New York Times reported that charges could come “ as early as this summer.”
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There are investigations related to competition underway against most of the biggest tech giants – Apple, Facebook, and Amazon face similar inquiries, and their CEOS are scheduled to join Sundar Pichai for a virtual hearing with the House of Representatives later this month. Let’s spend a few minutes today catching up on the antitrust inquiries into Google.