Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious Outperformance
Find Stocks Now

Google executive testifies innovation key to avoid becoming 'next road kill'

Published 10/26/2023, 01:40 PM
Updated 10/27/2023, 01:01 AM
© Reuters. FILE PHOTO: A woman holds her smart phone which displays the Google home page, in this picture illustration taken February 24, 2016. REUTERS/Eric Gaillard/Illustration/File Photo

By Diane Bartz

WASHINGTON (Reuters) - Google executive Prabhakar Raghavan on Thursday detailed challenges the search and advertising giant faces from smaller rivals, describing efforts to avoid becoming "the next road kill."

Raghavan testified at the ongoing antitrust trial in the suit brought by the U.S. Justice Department and a coalition of state attorneys general, alleging Alphabet (NASDAQ:GOOGL)'s Google unlawfully abused its dominance in the search-engine market to maintain monopoly power.

Raghavan, asked about a 1998 article about Yahoo!'s dominance of search at the time, said he was acutely aware rivals from Expedia (NASDAQ:EXPE).com to Instagram to TikTok competed for users' attention.

"I feel a keen sense not to become the next road kill," said Raghavan, a senior vice president at Google who reports to chief executive Sundar Pichai.

Raghavan said Google had some 8,000 engineers and product managers working on search, with about 1,000 involved in search quality.

Raghavan's description of Google struggling to stay relevant clashed with the Justice Department's depiction of a behemoth that broke antitrust law to retain dominance of online search and some aspects of advertising, including paying an estimated $10 billion annually to smartphone makers and wireless carriers to be the default search engine on devices. Google's share of the search engine market is near 90%.

Raghavan said that Google faced different types of competitors, including general search where they compete against Microsoft (NASDAQ:MSFT)'s Bing and specialized search engines, such as the travel website Expedia.com. He described Amazon.com (NASDAQ:AMZN) as one of the companies that he worried most about competing against.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Young people have begun doing searches on the video-sharing app TikTok and other social media apps, he said. "Where young people go, older people follow," he said.

Asked about the expression "Grandpa Google," Raghavan said "unfortunately, yes" he had heard it. "Grandpa Google will help with things like homework but when it comes to interesting things, they go elsewhere," he said.

The trial began in September and will conclude in mid-November.

Latest comments

Its like asking a thief to testify about stealing.......
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.