![]() ![]() Google has also felt the power of defaults on the losing end. The new default setting generated “hundreds of millions of dollars in revenue” for Google, he said. The team tested adding a $10 default to increase spending among low-budget advertisers - and it worked, Rangel said. In one, advertisers looking to spend money on Google were asked to enter a maximum daily budget into an interface with no default settings. Google argues the company has won market share because it has the best search engine, not because of a lack of competition. Justice Department alleges that Google illegally maintains a monopoly in online search by paying more than $10 billion a year to tech rivals, smartphone makers and wireless providers in exchange for being set as the preselected option, or default, on mobile phones and web browsers. Rangel’s testimony addresses a key point in the government’s biggest tech monopoly trial of the last two decades, which opened Tuesday in Washington. “Defaults have a powerful impact on consumer decisions.” Often consumers don’t even realize they are making a choice by default and they don’t know how to change it, he said. “Search engine defaults generate a sizeable and robust bias towards the default,” Rangel said. Consumers are reluctant to change behaviours that have hardened into habit, he said. He found that getting prominent real estate on a web browser or mobile phone discourages people from switching to rival search engines. Rangel said in testimony Wednesday and Thursday that his research on the prime placement of cereal boxes in stores was relevant to his assessment of search engine defaults.
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