With the South East of Australia in the midst of winter, our attention turns to Europe where things are heating up for Google. The search engine was hit with a record Euro fine for anti-competitive behaviour totally 2.42-billion-euro ($3.57 billion AUD) for abusing its market dominance. Google has been accused of prioritising their Google Shopping ads at the top of Google search results over their competitors.
EU competition commissioner Margrethe Vestager described the action as “illegal under EU antitrust rules“. EU regulators took action after receiving scores of complaints from rivals including Yelp, TripAdvisor, UK price comparison site Foundem and News Corp. Competitors complained Google was manipulating results to benefit their shopping ads. In response, Google stated that online shoppers want to find products quickly and easily, and their Google shopping ads provided this service.
Google Shopping offers users a quick selection of the best prices for a particular product, advertisers pay to be featured in the results. Competitors, including comparison sites which offer a similar service, were claiming their website listings are being pushed all the way down to page four of the search results. As we know the majority of Google search users don’t click past the first page of results. Google’s ego has taken a battering over the allegations and is fighting the charges.
The other digital news to grab my attention this week was Facebook’s continued push into live TV streaming. Facebook has signed an agreement with Fox Sports in America to broadcast live Champions League Football (soccer) games next season.
Soccer is the most watched sport on Facebook. Last year 3.7 million users tuned in to watch a Wayne Rooney-sponsored charity match. The recent Champions League final attracted 34 million people who had 98 million Facebook interactions. These numbers are pretty impressive, but it would be good to understand how long users viewed the videos. What is surprising is that I thought NBA or NFL would have larger audiences on Facebook than football. Amazon’s Prime is live streaming Thursday night NFL games next season. They paid $50 million for 10 games, which was five times more than what Twitter paid last season.
Last week I wrote about how Snap and Facebook are becoming more aggressive with their live TV streaming services. The above news by Facebook is more proof that social media websites are becoming media channels. It will be interesting to see if users will embrace watching live TV on Facebook, Snap and YouTube in the same way people use Netflix and Amazon Prime.