A Google executive compared search businesses to firms that sell “cigarettes or drugs”
Several years ago, an executive from Google compared the company’s search business with the “cigarettes or drugs” business. Well, this might not sound strange to some; however, DoJ is considering these remarks seriously given the ongoing Google vs. DoJ trial. These words were uttered by Michael Roszak, Google’s Vice President for Finance.
According to the Livemint report, during a communication training back in July 2017, the executive compared the two businesses. This information was found in an online document shared by the Department of Justice. To be precise, Roszak stated, “Search advertising is one of the most successful business strategies ever developed in the world… We are lucky to have a wonderful business, but there are illegal industries (such as those selling narcotics or cigarettes) that may compete with these economics.
He further said that our business model is free from the basic laws of economics, including supply and demand. He added that the search business outlaws the significance of demand and focuses on the supply aspect that targets ads, ad formats, and sales. Furthermore, he added that Google handled it well. He claimed the business made “smart marketing and distribution investments” to ensure that its product was available virtually everywhere.
According to DoJ, this might help with the case
Given this scenario, the DoJ expects that it could be helpful for the case since it will help to verify the anticompetitive practices used by Google to occupy the top lead in the search business industry. In contrast to this, Google didn’t favor the use of such documents in the trial. The company’s lawyers assert that such a document is not a business record; for this reason, it can’t be considered as the opinion of the company. A spokesperson from the company stated that this document was created only for a public speaking class. Given this aspect, it was meant to be “hyperbolic and attention-grabbing,” the spokesperson told Bloomberg.
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