The lack of competition in the U.S. allows Google to sidestep implementing beneficial changes to its Search Ads, as quality improvements could hinder revenue.
In competitive environments, companies are more likely to adopt practices that promote advertiser satisfaction, as failing to do so risks losing them to rivals.
Google points to competition from Yahoo in Japan for lower cost-per-click prices, revealing that markets with competition foster better pricing and options for advertisers.
Without competition, Google has less motivation to adapt services to better meet advertiser demands, leading to higher prices and declining quality in ads.
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