Why Regulators Are Ignoring YouTube's Monopolistic Takeover — For Now!

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By Alan Hume | Friday, 06 September 2024 05:15 AM
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In a recent opinion editorial by Aiden Buzzetti for The Blaze, he asserts that Google's video platform, YouTube, is a monopolistic entity that has been overlooked by regulators.

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He quotes Judge Amit P. Mehta's statement from last month's landmark monopoly case, "Google is a monopolist, and it has acted as one to maintain its monopoly." The judge was referring to Google's domination of online search, but Buzzetti argues that this could also apply to Google's control over online ads, online shopping, and most notably, YouTube.

Buzzetti points out that YouTube, the global leader in online video, is accessed by over 100 million Americans daily. He questions how YouTube achieved such rapid growth, suggesting it was through "shoving competitors out of the way, and putting the squeeze on consumers," a strategy he claims is common in other areas where Google operates.

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The Washington Post recently dubbed YouTube "the most consequential technology in America" due to its evolution beyond a mere phone app. It is now the world's second-largest search engine, only surpassed by Google. It boasts more music listeners than Spotify or the radio, and its CEO sees the living room as "YouTube's next frontier." More viewers already watch YouTube on TVs than any other streaming service.

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Buzzetti highlights YouTube's impressive growth in the subscription TV service market, where it has become the third-largest in America in just seven years. By 2026, it is projected to be No. 1 in subscription TV and expects to double again before reaching its peak.

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YouTube's ad business, which keeps 45 cents of every ad dollar, generated $31 billion in revenue last year. For those who prefer an ad-free experience, 100 million subscribers pay up to $22.99 a month. Either way, YouTube profits.

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However, Buzzetti argues that YouTube's path to dominance might be illegal. He cites instances of YouTube muscling out companies that tried to be part of its ecosystem and banning third-party ad software, forcing ad buyers to use its own tools. Brian O’Kelley, former CEO of AppNexus, claimed, "They crushed our growth and ruined our product."

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Buzzetti also accuses YouTube of ignoring copyright, privacy, and child safety laws. He mentions a $170 million fine Google received in 2019 for YouTube's violations of children's privacy laws. Despite growing viewership among children and teens, YouTube's algorithm reportedly serves children as young as 9 years old hundreds of gun violence videos a month.

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While other countries have taken action against YouTube, Buzzetti argues that U.S. regulators have not yet subjected YouTube to the scrutiny it deserves. He concludes by urging the U.S. Justice Department to give YouTube the same full investigative scrutiny it has appropriately applied to Google's other monopolies.

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