美国国家公共电台 NPR--The Justice Department accuses Google of an advertising monopoly

The Justice Department accuses Google of an advertising¹ monopoly

Transcript²

NPR's Steve Inskeep speaks with University of Chicago professor Luigi Zingales about the federal antitrust case targeting Google's digital advertising business.

STEVE INSKEEP, HOST:

If you do a Google search online and enter the terms Google antitrust lawsuit³, you will find a lot of news stories because Google has been sued again. The Department of Justice and eight states filed an antitrust lawsuit against the search company, accusing it of running an online advertising monopoly. Let's discuss this with Luigi Zingales, professor of finance at the University of Chicago. Good morning, sir.

LUIGI ZINGALES: Good morning.

INSKEEP: So when I saw this news, my first thought was, isn't Google already being sued by the federal government? And I realized, in fact, they are, but it's different. So how is this antitrust suit different from the other antitrust lawsuit?

ZINGALES: Google does a lot of things, and most of us knows it for the searches, for the Google Maps, for YouTube. But in fact, Google runs the largest market in the world, the market for ads. Every year, five trillion ads are exchanged in this market.

INSKEEP: Wow.

ZINGALES: In this market, Google represent the buyers, which are the advertisers, represent the sellers, which are the publisher, and run the auction⁴. So it does everything.

INSKEEP: Oh, OK. So the previous lawsuit, I think, was about Google search that you mentioned. This time, it's about that monumental advertising market. You just said five trillion, which is an eye-popping number of ads. But are they a monopoly, really?

ZINGALES: First of all, if we look at the traditional measure of market share, absolutely, because they control, like, 90% of some of the segment of this market. But let's look at the more substantive⁵ things, which are prices. In this transaction, Google get 30 cents on the dollar. Now, if you make a comparison with the stock market where we have more competition, intermediaries gets basis points, so fraction of a percentage points. And here, Google is able to get 30%. Now, how does it do that? - because it's able to aggregate⁶ both the buyers and the seller and to manipulate the market. One of the things that emerged in the complaints is that Google is able to intervene in the prices and favor either Paul or Peter, depending on the convenience, in the way it wants.

INSKEEP: You said a really interesting thing here, because I think it's hard for a lot of us to follow the various ways that Google may allegedly manipulate the advertising market. But you're telling me they are able to command so large a cut for themselves just for passing an ad along - 30% of the value, 30% of each dollar - that almost by definition, they dominate the market. Is that what you're telling me?

ZINGALES: Yes. It's very hard to explain why they are able to retain so much in a competitive market. And in fact, what is interesting and what I read in the complaint is that even the Google executives themselves recognize that if the market was more competitive, they would lose some of that cut.

INSKEEP: Is there a case to be made that there are other big companies that sell ads - Facebook comes to mind - and that the market is constantly changing and evolving, and maybe Google has a temporary monopoly in one market segment or another, but it's really not that important? Is there that case to be made?

ZINGALES: Look, you can always make a case that eventually competition will come in, technology will change and etc. The question is how long is eventually? AT&T had a monopoly on phones, and eventually they lost it. First of all, it took the antitrust to do it, but eventually...

INSKEEP: Yeah.

ZINGALES: ...You had a new technology, etc. The question is how long will it take and how much consumers are hurt in the meantime?

INSKEEP: What is the remedy here? What would the Justice Department have Google do?

ZINGALES: I think that one simple idea is to force a separation between the role of - for example, representing the buyers, representing the seller and running the auction. Another is to get much more transparency on the prices. Most of the stuff that goes on on Google Ad Exchange would be illegal in the stock market. It's just that we don't know because there's no transparency.

INSKEEP: Do you think in the end, Google should just be making a lot less money?

ZINGALES: I don't think that the purpose here is to penalize⁷ Google. If Google makes money by inventing new products, I'm very happy that they make the money. The point is that here, they are not inventing new products. They are taking advantage of a monopoly position. And that needs to end.

INSKEEP: Do - would you expect it's going to take years, though, for this to reach a resolution?

ZINGALES: Yes, But I think the remedy here is part the trial. So the exposure of facts in the trial will be crucial to reduce this monopoly.

INSKEEP: Luigi Zingales is at the University of Chicago and host of the podcast "Capitalisn't." Thank you so much.

ZINGALES: My pleasure.

1 advertising   

n.广告业；广告活动 a.广告的；广告业务的

参考例句：

• Can you give me any advice on getting into advertising? 你能指点我如何涉足广告业吗?
• The advertising campaign is aimed primarily at young people. 这个广告宣传运动主要是针对年轻人的。

2 transcript   

n.抄本，誊本，副本，肄业证书

参考例句：

• A transcript of the tapes was presented as evidence in court.一份录音带的文字本作为证据被呈交法庭。
• They wouldn't let me have a transcript of the interview.他们拒绝给我一份采访的文字整理稿。

3 lawsuit   

n.诉讼，控诉

参考例句：

• They threatened him with a lawsuit.他们以诉讼威逼他。
• He was perpetually involving himself in this long lawsuit.他使自己无休止地卷入这场长时间的诉讼。

4 auction   

n.拍卖；拍卖会；vt.拍卖

参考例句：

• They've put the contents of their house up for auction.他们把房子里的东西全都拿去拍卖了。
• They bought a new minibus with the proceeds from the auction.他们用拍卖得来的钱买了一辆新面包车。

5 substantive   

adj.表示实在的；本质的、实质性的；独立的；n.实词，实名词；独立存在的实体

参考例句：

• They plan to meet again in Rome very soon to begin substantive negotiations.他们计划不久在罗马再次会晤以开始实质性的谈判。
• A president needs substantive advice,but he also requires emotional succor. 一个总统需要实质性的建议，但也需要感情上的支持。

6 aggregate   

adj.总计的，集合的；n.总数；v.合计；集合

参考例句：

• The football team had a low goal aggregate last season.这支足球队上个赛季的进球总数很少。
• The money collected will aggregate a thousand dollars.进帐总额将达一千美元。

7 penalize   

vt.对…处以刑罚，宣告…有罪；处罚

参考例句：

• It would be unfair to penalize those without a job.失业人员待遇低下是不公平的。
• The association decided not to penalize you for the race.赛马协会决定对你不予处罚。