Google is officially a monopoly, now let’s get the rest of them

In the early 2000s, the inception of the internet led to a second gold rush in which various startups raced to claim niches in a digital world that was mostly unregulated. This led to the creation of multiple different companies, all of which have become ubiquitous in American industry, technology and innovation. Companies like Google, Amazon, Apple and Meta have become headliners of America’s “Big Tech” market. However, as their size starts to limit competition and innovation in the tech industry, it has become apparent that it is finally time to crack down on these large, unchecked data monopolies.

These “Big Tech” heavyweights have essentially become unstoppable in dominating their respective markets, taking advantage of a lack of government oversight to strengthen their grip. This has allowed them to stifle competition and limit choices for consumers.

Amazon has long been regarded as a titan of the online shopping markets, accounting for almost 40% of all online sales. Its market share is unparalleled, and the company has used this to its advantage by practicing illegal conduct in order to limit competition. Amazon illegally overcharges sellers with fees and swaps out organic search results with paid advertisements, oftentimes for its own products. Additionally, the company’s control over its site lets it flood producers with online fees, allowing Amazon to hike prices on competing goods while simultaneously lowering their quality.

These illegal and monopolistic tendencies are predatory. Not only do Amazon’s illegal  price hikes limit competition and entry into the digital retail space — they also impact average Americans who have to spend more on cheaply made goods.

Amazon’s brand image and wide range of products has allowed the company to create an uneven playing field, in which its personal products will always be marketed above the competition, even if other products are rated higher by customer reviews. This is considerably harmful for both consumers and producers, as Amazon and other business giants gain unfair advantages regarding the advertisement, price and quality of a product. 

Amazon and other monopolistic corporations managed to take advantage of a sluggish legislative process, one that makes regulation difficult, to dominate different facets of the digital market. However, as regulation finally starts to make its way through the legislative process, it seems as if the “antitrust dam” is ready to burst and flood Silicon Valley.

Recently, a federal judge ruled that search giant Google was taking advantage of its monopoly by hiking up prices on advertisers. In 2024, Google is estimated to be the search engine used in 90% of all searches. This unequivocal control over the search engine industry allows the company to charge as much as they want without any pushback or regulation.

The case, filed by the Biden administration in conjunction with 17 states, seeks to limit Google’s monopoly and prevent it from further persecuting advertisers with steep prices. 

This is one of the first rulings on large-scale domestic lawsuits against these tech monopolies. As the floodgates open and more cases are filed, many hope that this will bring justice to these monopolistic tech giants, who are all individually being accused of manipulating search results to help their bottom line at the expense of consumers and competitors alike. 

Ultimately, these companies have managed to take advantage of America’s distinct lack of legislative precedent regarding ecommerce, data management and a multitude of other issues that have been created by the rapid growth of digital markets. 

An economic expansion like the one prompted by the internet has led to unprecedented growth for companies and the economy at large. If legislators want to protect the interests of free trade on the internet, then laws need to be enacted in order to limit the extent to which these otherwise unstoppable transnational corporations can dominate markets.

Across the pond, the European Union has been a lot more effective when it comes to prosecuting many of these tech monopolies and has frequently struck down deals and policies that give these companies unfair advantages. These policies have prevented many of these corporations from having the sweeping controls over international markets that they have been allowed to maintain in the United States.

At the end of the day, no one is hurt more by monopolies than the average consumer who is forced to settle for lower quality goods and higher prices. Companies like Google, Amazon, Apple and Meta have all set up schemes in which it becomes impossible to participate in a free market without adhering to long lists of policies, demands and fees. This is not only illegal but immoral, as it allows them to strong-arm competitors and step in the way of a diverse market for the sake of their investors.

Hopefully, the Biden administration’s pursuit of Google and other tech giants like it encourages a change in the cultural perception of these companies — away from the idea that these companies are evil, yet lawful entities and into one where we scrutinize their size for the damage it has done to the competition within the tech industry.

Mateo Alvarez is an Opinion columnist studying political science. His column, “Byte the Ballot”, discusses the ways in which politics tangle with digital culture. He can be reached at mateoalv@umich.edu.

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