 Google founders Larry Page and Sergey Brin (Source: a beautiful gift/WordPress)
Odds of Google being split up are very slim
Google
is an American company that started as a simple search engine and
grew to a massive corporation with tentacles reaching all across the
technology arena into other unrelated fields. The size of the company
and money generated by Google and its advertising programs today make
it a clear target for watchdog groups that maintain Google is a
monopoly.
One watchdog group called Consumer Watchdog has
asked the DOJ this week to break
Google into smaller companies to prevent a monopoly
situation along the lines of Microsoft. John M. Simpson from Consumer
Watchdog is the person who made the request to the DOJ and he argues
that the DOJ's actions against Google's attempts at buying other
advertising firms and scanning books isn't enough to ensure the
search giant doesn't turn into a monopoly.
Simpson wrote in a
letter to the DOJ, "Google exerts monopoly power over Internet
searches, controlling 70 percent of the U.S. market. For most
Americans – indeed, for most people in the world – Google is the
gateway to the Internet. How it tweaks its proprietary search
algorithms can ensure a business's success or doom it to
failure."
The fact that search rankings on Google can
make or break a company is no theory. Each time Google algorithms
change retailers around the world moan over last rankings. Once a
retailer is off the first page of results the chances of searchers
clicking becomes much smaller.
EWeek rightfully
points out that the major flaw with Simpson's argument is that Google
doesn't force anyone to use its services; it just happens to be the
most popular service around. Google also lets users leave anytime
they want and take their data with them when they go. Another factor
that hurts Simpson's idea of a split up Google is the fact the DOJ
didn’t split up Microsoft when asked by advocates, and Microsoft
has been convicted of anti-competitive practices in the past. Google
has so far never been formally accused of anti-competitive practices,
though some major companies like AT&T
have accused Google of being anti-competitive.
Simpson
also alleges that Google purposefully tweaks its algorithms to keep
other businesses down and serve its own interests. Google has long
maintained that algorithm changes are nothing more than an attempt to
give users more accurate and useful search results.
Simpson
outlined his plans for breaking Google up in the letter sent to the
DOJ, "Gmail and its new social networking service, Buzz, could
be spun off as a separate entity as could YouTube, a Google
acquisition that we believe should have been denied at the time of
merger. Enterprise applications could be another separate
business."
A Google spokesperson told eWeek,
"We totally understand that with size and success comes
scrutiny. Although given their track record, even if we broke Google
in half tomorrow, Consumer Watchdog would probably insist that we
split halves into quarters."
Google is a huge company,
but if the company was broken up as suggested by Simpson many of the
services simply don’t generate the revenue needed to continue
operating. Google's massively successful advertising program
underwrites most of the free services like Gmail and Buzz.
"Folks that want porn can buy an Android phone." -- Steve Jobs
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