Although Google only recently released a 5G phone, it is already working towards 6G. However, Google’s business has been under scrutiny for a very long time. The Turkish government recently slammed a $26 million fine on Google for unfair competition in its advertising business. Presently, Google is facing a similar investigation in India, the U.S, and the European Union. According to reports, Airbnb submitted a US IPO application, seeking to list and trade on the Nasdaq exchange with ABNB. It stated in the prospectus that Google search prevented the company from gaining more network traffic.
In the prospectus submitted by Airbnb, the company clearly stated that Google prefers its own products and services, resulting in fewer Internet users visiting the Airbnb website. Last year Google added more search functions similar to travel sites. Airbnb wrote in its prospectus: “Google launched Travel and Vacation Rental Ads. These services have had a serious impact on our SEO results. Our platform’s position in the organic search results of Google’s travel-related vocabulary has been lowered and the position is no longer so good”.
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Companies use SEO to optimize content to make the content occupy a more favorable position in search results, but they do not need to pay Google. The prospectus stated: “We focus on free channels, such as SEO. With the help of SEO, search engines can place our platform in a favorable position for search queries because the content of our platform is more relevant. Google adjusts search engine algorithms or makes similar actions that are beyond our control. It will seriously affect our search engine rankings and platform traffic”.
Airbnb also warned that if the search ranking problem persists, the company may be forced to invest more marketing expenses.
European Union hopes to cut Google’s monopoly
Google is now fighting the same battle on multiple fronts. The E.U has been investigating the company over similar issues as in India. In fact, it is even drafting the “Digital Services Act” which should checkmate these excesses and more.
Google said in response that the new regulations should take into account that the requirements of individuals and companies on technology companies are increasing, rather than decreasing. Karan Bhatia, the company’s vice president of global government affairs and public policy, said: “As we have clearly stated in our public and private communications, we are concerned that certain proposals in the bill will affect global technology companies. It is difficult to meet the increasing demands of European users and enterprises”.
The document recommends that Google’s US “allies” increase their resistance to Breton. They will contact the US government and embassy over this issue. For Google, the new regulations will threaten relations across the Atlantic. In addition, the document also proposes to take advantage of the potential concerns of the European Commission’s competition department. It is claiming that the “Digital Services Act” will threaten the authority of the department.
Another part of Google’s strategy is to clarify the costs that consumers and businesses need to bear. At the same time, the 18-page document also proposes to recruit EU countries and European online companies as “allies”.
For the European Union, a couple of companies like Google have too much power on the market. According to a recent investigation, the company has an absolute monopoly over the search engine market. The EU believes that it is wrong to own a market and also own a shop in the same market. Such a company will have an unfair advantage over its competitors.