Microsoft accuses Google of harming newspapers by monopolizing online advertising market


In an interview with Bloomberg, Microsoft continued to advocate for new regulatory action against Google, which they accused of harming democracy by undermining the viability of traditional media.

“The reality is that Google has basically sucked most of the oxygen out of the opportunities for people who create content to make a living from advertising,” Smith, who is also chief legal officer at Microsoft, said in an interview. at Bloomberg Television. “It’s interesting to see what happened to what was supposed to be an open web – that was the promise of the internet. “

Smith noted that in 2005, US news agencies generated nearly $ 50 billion in advertising sales, a figure that dropped to $ 14 billion.

“Where did all the money go?” Well, it’s very clear where that went – in Alphabet’s earnings yesterday they showed that in a single quarter they had almost $ 45 billion in digital advertising, ”he said. . “What Google has basically done is redesign and redesign the web so that if you want to make money with ad-based content, you have to do it through their exchange, by using their tools and by paying. money at, and through Google. “

Google claims to share funds with media creators since 2007 through channels such as YouTube, but of course it is precisely these unregulated media that have been accused of increasing polarization and radicalization around the world.

Microsoft is backing legislation like the one proposed in Australia that would increase Google’s share of revenue going to online newspapers.

Google, however, said its advertising device was good for news publishers and accused Microsoft of “going back to its familiar playbook of attacking rivals and pushing for regulations that benefit their own interests.”

Google, Apple and Facebook are currently under investigation by the US Congress for abuse of dominance, a review Microsoft has encouraged and has avoided itself so far.