Google is facing concerns about losing users to Amazon and newer apps like TikTok, according to Prabhakar Raghavan, a Google senior vice president, who testified as part of the Justice Department’s antitrust case against Google. Raghavan stated that young people, in particular, are using apps such as TikTok, Instagram, and WhatsApp, where they spend an average of four hours per day. He expressed a sense of urgency to avoid becoming irrelevant and losing market share to these platforms.
Raghavan’s testimony aimed to counter the notion that Google could be a “one-stop shop” for internet search. The Justice Department has argued that Google maintains an illegal monopoly in online search through agreements and payments to tech rivals, smartphone makers, and wireless providers. However, Google asserts that it faces competition not only from other search engines but also from various online sites that cater to young people’s entertainment, shopping, and cooking needs.
According to Raghavan, Google is at risk of losing market share to platforms like TikTok and Instagram, as these platforms offer a different search experience compared to traditional online search behavior. He emphasized that the fastest-growing section of search queries involves young people using their camera to search for items rather than typing a query into a search engine.
Raghavan highlighted that younger users heavily influence the search behavior of older users, which is why Google has been focusing on understanding TikTok. He referred to internal research indicating that nearly 40% of young people use TikTok or Instagram when looking for places to eat, rather than using Google Maps or Search.
Pandu Nayak, a Google vice president for search, also testified that Google has been studying TikTok to understand how younger people search for information and what they find useful. Amazon, as an e-commerce giant, is also posing a threat to Google’s search dominance, with users increasingly starting their shopping journeys on Amazon.
Raghavan acknowledged that Amazon has been successful in attracting advertising dollars through its closed-loop system, and Google lacks a similar advantage. However, he disputed the notion that increased shopping on Amazon means reduced searches on Google, citing Google’s own internal research that did not find a causal relationship between the two.
The Justice Department lawyer cross-examined Raghavan about the amount Amazon pays Google for advertising visibility on the search service. Raghavan stated that it amounts to billions of dollars.
