Google says it doesn't monopolize digital ad market – senators don't buy it

Re:Google says it doesn't monopolize digital ad market – sen... by dialtone on Wednesday September 16, 2020 @02:56AM (#24490216)

As much as I agree with the core of what you are saying, it isn't AdMob that is the issue. It's that Google controls both the marketplace, the pub-side and the buy-side, as well as the browser and the devices used to experience ads. Apple is now aiming for a similar level of control in the ad space very blatantly using their ownership of the platform to do what they want to power themselves up.

This vertical integration in the space is what drives the anti-competitive behavior, if the Google buy-side were a separate company that happened to acquire AdMob there would be no real issues as they don't control the whole stack.

FB on the other hand sells a service and lets companies use their APIs to integrate as well as competing with them via their internal sales team.

These companies can do this only because you are forced to work with them because they own such a large part of internet traffic, not because they offer particularly good services or have better technology or prices.

[ Parent | on HN ]

Re:Google says it doesn't monopolize digital ad market – sen... by wbl on Wednesday September 16, 2020 @06:58AM (#24491394)

Traditionally vertical integration is fine and horizontal suspicious in antitrust law. Why are ads different?

[ Parent | on HN ]

Re:Google says it doesn't monopolize digital ad market – sen... by dialtone on Thursday September 17, 2020 @01:30AM (#24501508)

I’m not sure how you can say that. The first examples of anti trust action have been about vertical integration and ownership of critical infrastructure by a market player not allowing entrance by others because it’s not easy to lay down more railway or more phone cables or telegraph cables. That’s the case for the web advertising situation.

[ Parent | on HN ]

Re:Google says it doesn't monopolize digital ad market – sen... by TeMPOraL on Wednesday September 16, 2020 @07:44AM (#24491648)

My guess would be: because a single company owns a significant chunk of the market share of each segment of the vertical they're integrating.

[ Parent | on HN ]

Re:Google says it doesn't monopolize digital ad market – sen... by andromeduck on Wednesday September 16, 2020 @05:58AM (#24491138)

Also because our pyramid shaped tax structure favors vertical integration.

[ Parent | on HN ]

Re:Google says it doesn't monopolize digital ad market – sen... by zo1 on Wednesday September 16, 2020 @06:47AM (#24491345)

Can you explain/expand your reasoning behind that a little more? This is the first I've encountered such a point.

[ Parent | on HN ]

Re:Google says it doesn't monopolize digital ad market – sen... by andromeduck on Thursday September 17, 2020 @08:36AM (#24503834)

Tax pyramids occur when the total value is taxed at each point of sale instead of the value added. This results in taxes being taxed which effectively increases the tax paid on earlier stages. For example, very few would find it reasonable for a 100% excise tax to be applied to alcohol or automobiles but less would object to a 30% tax and legislating a certain structure for the sale of alcohol, for example farm -> brewery -> distributor -> retail or manufacturer -> dealership, that effective results 185% or 69% whilst only having the appearance of charging 30%.

The easiest and most effective way to reduce this tax burden is simply expanding your vertical. This is why tesla is so staunchly against third party dealerships or why hyperscalers and apple, google, microsoft, and amazon are all starting to make their own chips. Breaking up big tech won't accomplish anything in the long term without fixing the broken tax system and the incentives it creates.

[ Parent | on HN ]

Re:Google says it doesn't monopolize digital ad market – sen... by dd36 on Wednesday September 16, 2020 @08:03AM (#24491767)

Progressive corporate taxation?

[ Parent | on HN ]

Re:Google says it doesn't monopolize digital ad market – sen... by zo1 on Wednesday September 16, 2020 @02:33PM (#24495809)

I'm curious about how "pyramid shaped tax structure favors vertical integration". What is a pyramid shaped tax structure? And what about it favors vertical integration? Casual searches on it don't yield much great info atm.

[ Parent | on HN ]