New research reveals its dominant position in vertical searches!

Google’s dominance in the search engine sector has long piqued the interest of regulators, legal experts, and industry players. While it is common knowledge that Google controls a significant portion of the overall search engine market, the tech giant claims that it faces fierce competition from specialized search engines tailored to specific needs. A recent study sheds light on this claim by examining Google’s market share in these vertical segments.

With a staggering $307 billion in revenue in 2023, Google’s search engine remains one of the most profitable assets, generating billions of dollars. Regulators say Google’s overwhelming presence in the general search engine market, where it competes with competitors like Microsoft’s Bing and DuckDuckGo, borders on monopolistic behavior. Google, however, insists that it competes with a variety of specialized search engines, such as Amazon for shopping, Kayak for travel, and OpenTable for dining.

Researchers from institutions including the University of Zurich and Northeastern University conducted an empirical analysis to back up Google’s claims. Using data from U.S. residents’ web browsing activity over a five-month period in 2020, they examined search behavior across Google, Bing, and various vertical search engines.

Searches were divided into 90 separate verticals, covering areas such as shopping, health, and news. The study aimed to determine Google’s true market share in these specific segments, assessing whether users viewed Google Search and specialized search engines as interchangeable.

The study found that Google products dominate 21 of the 30 largest vertical markets, capturing more than 50% of searches. These markets alone account for 94.1% of all searches. Interestingly, users initiated more than half of their search sessions on Google platforms in 24 segments, underscoring Google’s role as the primary entry point for online searches.

Despite Google’s claims, the study suggests that users do not see Google Search and vertical search engines as direct substitutes. Even when using vertical search engines, many sessions started with a Google product, underscoring Google’s significant influence in directing users to its vertical offerings.

These observations have significant implications for antitrust litigation. The data suggests that Google may be using its dominant position in general search to strengthen its position in specific verticals. In the travel segment, for example, Google captured 51% of searches among participants, potentially tilting the results in favor of Google Flights and Google Hotels.

Regulators have already taken action on Google’s practices in vertical markets such as Shopping and Travel, leading to significant actions such as the European Commission’s fines against Google Shopping. The study’s findings reinforce calls for further regulatory oversight and consideration of both structural and behavioral remedies. Proposed remedies include separating Google’s search engine from its vertical search engines and limiting exclusive agreements.

This comprehensive analysis of Google’s market share in vertical search segments offers new perspectives on the digital search landscape. It challenges Google’s narrative of facing significant competition from specialist search engines, emphasizing the need for rigorous regulatory measures to address Google’s market power. As the debate over Google’s influence continues, this study provides key data to inform future antitrust policy and ensure a competitive digital marketplace.

Photo: DIW-Aigen

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