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A hard-hitting new study claims that Google’s search results
not only favor its own internal websites over competing destinations, but also
degrade social welfare and freeze out potential rivals in doing so.
The claim itself isn’t a
new one, but the results of this study (DOWNLOAD) are
particularly notable since the research was conducted with the help of Tim Wu,
an American academic who created the phrase “net neutrality” and has pushed for
a freer internet.
RT.com report continues:
“By leveraging its
dominance in search to promote its internal content, Google is reducing social
welfare – leaving consumers with lower quality results and worse matches,” the
study, which was conducted with the help of researchers from the Yelp review
website, reads.
Specifically, the
researchers showed users two different types of results for local searches. One
was conducted through Google, which filtered results and typically placed
Google content near the top, and the other used Google’s own algorithm to pick
out the results that scored most relevant.
Ultimately, the team
found that users were almost 50 percent more likely to engage in results that
did not give Google services priority.
“By prominently
displaying Google content in response to search queries, Google is able to
leverage its dominance in search to gain customers for this content,” the
study reads. “This yields serious concerns if the internal content is
inferior to organic search results.”
“Google appears to be
strategically deploying universal search in a way that degrades the product so
as to slow and exclude challengers to its dominant search paradigm,” the
report claims.
Considering Google is
currently in the midst of an antitrust battle with the EU, the results arrive
at an inconvenient time for the search giant. Earlier this year, the EU filed a
complaint against Google for allegedly abusing its dominance in the European
market – one that could carry a US$6 billion fine.
Of course, one reason to
scrutinize the study is that it was commissioned by Yelp, which offers reviews
of local establishments and competes with Google when it comes to providing
local search results. However, Wu said the results of the experiment are the
most important thing to look at, and that Google is not doing the right thing.
“It’s a legal exercise of monopoly if it hurts
competitors while helping consumers, but if it hurts consumers while also
hurting competitors, then there is no justification for the conduct,” he
said to Bloomberg.
Wu also said that while
users in the US can protest Google by switching to other search engines, that
isn’t an excuse for what the company is doing.
“Given that general
Google search faces limited and in some countries no direct competition, I
think it can get away with weakening or degrading the product, and suffer
little consequence,” he added. “In fact, in antitrust cases, the
ability to do things that effectively eliminate consumer welfare, like offering
a degraded search, can be evidence of market or monopoly power.”
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