Why Breaking Up Monopolies Would Be Great For Affiliate Marketers by Chris Trayhorn, Publisher of mThink Blue Book, October 9, 2024 The ongoing antitrust case against Google is centered on its alleged monopolistic behavior in search, advertising, and mobile operating systems. One of the most significant proposed solutions in this case involves breaking up Google’s key business units—particularly Android, Google Play, and Chrome—to foster competition and reduce the company’s control over these pivotal markets. The single most important fact to keep in mind is Alphabet’s annual revenue: currently $328 Billion. Now, take 25% of that and imagine it spread throughout the entire online marketing community. Visualize the difference in the ease of starting new businesses; or in how well affiliates and influencers could support themselves as they learn; or in how many brand campaigns would reach profitability – all these opportunities are enormous. And they are enormous because that’s what a monopoly does: it creams off the profit across the industry, so business is dramatically harder for everyone else. Whatever the court finally decides, any reduction in monopoly power within online marketing in general must be good for the affiliate marketing community. Let’s talk about why. Proposed Breakup of Android, Play Store, and Chrome Android: Google’s Android operating system has a near-monopoly in the mobile OS market, powering over 70% of smartphones worldwide. The concern is that Google uses Android’s dominance to force device manufacturers to bundle its apps (like Chrome and the Play Store) as defaults. The really huge opportunity for performance marketers would result from any separation of android and the Play store. Google Play Store: The Play Store gives Google massive control over app distribution and monetization. By separating this entity, developers and affiliates would have more opportunities to work with alternative app stores, potentially reducing fees and increasing options for monetization strategies. Imagine Google’s 30% take on the Play store being available to pay affiliates and networks for app installs and in-app purchases. Chrome: Google’s Chrome browser also plays a major role in securing its dominance in search advertising. The browser’s integration with Google Search, along with data collection practices, reinforces Google’s advertising business. A breakup could involve separating Chrome from Google Search, opening the door for competing search engines, contextual search opportunities and AI search to be integrated more fairly into the browser. Restrictions on Exclusive Contracts for Search Another key aspect of the case focuses on Google’s exclusive contracts with device manufacturers and browser developers, such as Apple and Mozilla, to make Google the default search engine. These contracts have kept competing search engines like Bing and DuckDuckGo from gaining significant market share. The proposed solution would ban Google from continuing such exclusive deals. This would benefit the affiliate marketing industry by fostering greater diversity in search engines, leading to more ad networks, different traffic sources, and competitive pricing for search ads. Affiliates would also see more traffic sources in digital campaigns, promoting competition that could lower advertising costs. Benefits for the Affiliate Marketing Industry The breakup and restrictions could provide various benefits to the affiliate marketing industry: More Diverse Platforms: Affiliates would no longer be locked into Google-dominated ecosystems, leading to more app stores, search engines, and advertising platforms to choose from. Reduced Fees: More competition in app distribution and ad networks could lead to lower transaction and advertising fees. Better Advertising Opportunities: With more diverse ad networks, affiliates could access untapped audiences and potentially reduce their reliance on Google’s expensive ad ecosystem. Ultimately, the proposed breakup and restrictions would decentralize Google’s control, fostering innovation, competition, and fairer practices—positive changes that could empower affiliates and marketers alike. Filed under: Article, Blue Book Tagged under: affiliate marketing, Business Models, Columns, Industry Trends About the Author Chris Trayhorn, Publisher of mThink Blue Book Chris Trayhorn is the Chairman of the Performance Marketing Industry Blue Ribbon Panel and the CEO of mThink.com, a leading online and content marketing agency. He has founded four successful marketing companies in London and San Francisco in the last 15 years, and is currently the founder and publisher of Revenue+Performance magazine, the magazine of the performance marketing industry since 2002.