Amid a federal antitrust trial, Jerry Dischler, Alphabet Inc GOOG GOOGL Google's VP for advertising products, expressed concerns about the company's market share.
He admitted that Google's search ads were no longer necessary for advertisers and highlighted increasing competition from newcomers like TikTok and Amazon.Com Inc AMZN, Bloomberg reports.
In the antitrust trial against Google, Jerry Dischler testified that Google was losing market share to emerging players, especially Amazon.
With about 5 million advertisers compared to Meta's 10 million, Google risks losing advertising dollars to its competitors.
Recent shifts in the digital advertising landscape, including privacy policy changes by Apple Inc AAPL, have opened doors for significant competitors like Amazon.
The trial also discussed Google's control over ad pricing and changes in auction dynamics, including regularly modifying the auctions used to sell search ads, which can increase ad prices, sometimes up to 5%.
The federal antitrust trial against Google reveals growing concerns over the company's advertising dominance.
Advertisers are shifting budgets away from Google due to better data and competitive pricing. The trial also shed light on Google's practices of tweaking ad auctions and increasing ad prices without notifying advertisers.
The outcome of this trial could reshape the digital advertising industry.
Price Action: GOOG shares traded higher by 0.19% at $139.10 premarket on the last check Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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