Break Up Google?
A recent article from CNN focused on the government’s focus on potentially breaking up Google as a monopoly.
The US has a history of breaking up monopolies and for good reason. When a single company controls a service or product they can use that power in ways that disadvantage the American people, innovation and cripple markets. Options drive competition, drive innovation and drive costs down in most regards and those are all keys to a good economy. This is why there isn’t only one grocery store, clothing brand or car dealer despite a lot of consolidation.
What do we make of a company when their product is just “superior?” Some brands do so well that their name becomes synonymous with the product. A Starbucks run is a coffee run. We don’t say soda, we say Coke. Most people think that Kleenex is the proper name for paper out of the box. Kleenex is a brand name that did such a good job that we now call all tissues Kleenex. Same with Google. No one says,”let me search the World Wide Web for information about this thing.” No, we just say “I’ll google that.” Sure it means we use Google but Google has become a verb and that is its undeniable power.
Different places show different statistical analyses of google’s power. 40,000 searches a second. Millions every minute. Billions every day. 3 to 4 searches per day per person. Astounding.
What then do you break up and how is searching the internet a monopoly?
That comes in the use of their technology across multiple platforms and their alliances with other big tech firms to make Google the only search engine you have. My guess is that most of us are fine with that from a search perspective. We aren’t mad that the iPhone default search method is Google. But, this could give unique control of content, advertising and other adjacent benefits to Google and keep out competitors. Who can pay Google the most for search optimization is already a thing and since most people don’t get past page one or two of a search, that is coveted digital real estate and only Google controls the market.
It certainly won’t be the first or last you hear of the government's concern with big tech, the consolidation of power and the exploration of monopoly. With all of these cases, the hope is to benefit the consumer and keep them from potentially troubling outcomes of a monopoly.
Here is a link to the original CNN article.
https://amp.cnn.com/cnn/2024/10/09/tech/us-government-considers-a-breakup-of-google
As always, if you come across a financially related article you’d like to send my way please do!
Best place to send them is to me.
More next time!
Jonathan