YouTube has come a long way since its launch in 2005. Acquired by Google in 2006, the platform now boasts around 14 billion videos as of 2021. However, recent accusations suggest that YouTube may be playing a significant role in supporting “Google’s monopoly” and its “prospects for living room dominance”.
Advocacy groups focused on technology and competition are calling on the US Department of Justice to investigate these claims. They argue that YouTube’s pre-installation on smartphones and TVs sold in the US could potentially lead to Google monopolizing home entertainment. The American Economic Liberties Project, Demand Progress, and nine other organizations have written a letter to the DOJ antitrust chief expressing concerns about YouTube’s rise as a competitor to traditional cable and streaming services.
These groups highlight that Google already holds a dominant position in the internet search market and online advertising technology. They claim that YouTube has been using its dominance to crowd out competitors, lock in customers, and push bundled services. The recent expansion of YouTube TV, a subscription-based streaming service, further strengthens Google’s grip on the market for home entertainment.
In response to these allegations, a YouTube representative emphasized that the video-streaming space is highly competitive. The company competes with popular streaming services like Netflix and Disney+, as well as other video platforms such as Meta’s Instagram and TikTok.
Despite these controversies, Alphabet reported that YouTube’s quarterly ad revenue exceeded $8 billion in April, marking a 21% increase from the previous year. Google is currently facing two antitrust lawsuits alleging monopolistic practices in online search and digital advertising technology markets.
The advocacy groups paint YouTube as “the third leg of the stool that supports Google’s monopoly.” This ongoing debate highlights the challenges faced by tech giants like Google as they navigate complex regulatory landscapes while striving for continued growth and innovation.
