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Reuters
Reuters
Business

Google share of search ad market high but shrinking: eMarketer

FILE PHOTO: The brand logo of Alphabet Inc's Google is seen outside its office in Beijing, China August 8, 2018. REUTERS/Thomas Peter/File Photo

WASHINGTON (Reuters) - Alphabet Inc's <GOOGL.O> Google dominates the growing U.S. search ad market but Amazon.com Inc <AMZN.O> is growing fast, according to data from the market research company eMarketer released on Tuesday.

EMarketer data showed that the U.S. search ad market will grow by nearly 18% in 2019, and Google will have 73.1% of that market and revenues of $40.33 billion. EMarketer said that Google's share would decline to 70.5% by 2021.

Google faces investigations by the Justice Department, House of Representatives Judiciary Committee based on allegations that it abuses this dominance in ways that violate antitrust law.

FILE PHOTO: The logo of Amazon is seen at the company logistics centre in Boves, France, September 18, 2019. REUTERS/Pascal Rossignol/File Photo

The data also showed that Amazon, which overtook Microsoft Corp <MSFT.O> for the No. 2 spot in 2018, and has 12.9% of the market, boosting search revenue to $7.09 billion.

"Polling suggests that most product searches now begin on Amazon, causing the No. 2 search player to grow rapidly and steal share from its larger rival," said eMarketer.

Rounding out the top five is Microsoft at 6.5% of the market, Verizon Media, which includes AOL, at 2% and review site Yelp Inc <YELP.N> at 1.8%, said eMarketer. Verizon Communications Inc <VZ.N> owns Verizon Media.

(Reporting by Diane Bartz; Editing by Lisa Shumaker)

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