Harsh criticism of Google from Daron Acemoğlu! 'Inequality is rising'

Nobel laureate economist Daron Acemoğlu has discussed the monopoly Google has achieved in news distribution and access to information across digital platforms. In his article published in the Financial Times, Acemoğlu argued that Google's dominance in digital advertising is harming democratic public discourse.

Daron Acemoğlu harshly criticized the damage caused by Google, one of the giants of the digital world, to the online news ecosystem. The renowned economist, who works at MIT, stated in his article for the Financial Times that by controlling the 876 billion dollar digital advertising ecosystem, Google is financially collapsing independent news organizations.

According to Acemoğlu, this situation creates serious destruction not only in the media sector but also in society at large regarding access to information, freedom of expression, and a healthy public sphere. “As social media becomes more toxic and weaponized by extremists, reliable news continues to disappear,” said Acemoğlu, noting that news organizations that have become dependent on advertising revenue are forced to compete on terms set by Google.

“THIS ARRANGEMENT WOULD BE UNTHINKABLE IN ANY OTHER SECTOR”

In his article, Acemoğlu shared the following analogy, quoting a former Google executive:

“Google’s dominance in advertising is like Citibank or Goldman Sachs owning the New York Stock Exchange. This would be unacceptable in any other sector.” According to Acemoğlu, this situation leads to the collapse of fair competition in the digital economy and the disregard of the public interest principle.

“A 50 PERCENT TAX SHOULD BE LEVIED”

Including solution proposals in his article, Acemoğlu shared a proposal he prepared with his MIT colleague Simon Johnson. Accordingly, a 50 percent tax should be levied on companies that generate over 500 million dollars in annual digital advertising revenue. Acemoğlu argued that these revenues should be directed to support independent media and public digital spaces.

“DEMOCRATIC INSTITUTIONS MUST SET THE RULES”

Reminding that the European Union has taken some steps with the Digital Markets Act and the Digital Services Act, Acemoğlu said that there is bipartisan support for antitrust enforcement in the US as well. Stating, “Silicon Valley has been dictating the rules of the internet for too long. As competition decreases, inequality increases,” Acemoğlu emphasized that democratic institutions must determine market order.

Calling on Europe to take action, Acemoğlu concluded his article as follows:

"Now Europe must finish the job. Silicon Valley has been dictating the rules of the internet for too long, shaping markets to serve its own interests while competition decreases and inequality rises. By moving to break Google's advertising monopoly, Europe can show that our digital future should be shaped by democratic institutions, not monopolies."

News Source: 12punto