US said to consider a breakup of Google to address search monopoly

While a US judge ruled last week that Google is a monopoly, and hat it has abused its monopoly position, potential remedies were not part of the case up until this point. Now, though, the US Department of Justice is mulling over potential remedies, and it seems everything is on the table – down to breaking Google up.

Justice Department officials are considering what remedies to ask a federal judge to order against the search giant, said three people with knowledge of the deliberations involving the agency and state attorneys general who helped to bring the case. They are discussing various proposals, including breaking off parts of Google, such as its Chrome browser or Android smartphone operating system, two of the people said.

Other scenarios under consideration include forcing Google to make its data available to rivals, or mandating that it abandon deals that made its search engine the default option on devices like the iPhone, said the people, who declined to be identified because the process is confidential. The government is meeting with other companies and experts to discuss their proposals for limiting Google’s power, the people said.
↫ David McCabe and Nico Grant

The United States has a long history of breaking companies up, but the real question here is how, exactly, you would break Google up. Google makes virtually all of its money using its advertising business, and products like Chrome or Android in an of themselves make little to no money – they probably only cost Google money. Their real purpose is to direct people to using Google Search, which is where the various ads are Google’s real money maker. In other words, what would happen if you were to split off Chrome or Android? How are these products supposed to make money and survive, financially?

I don’t understand entirely how Google’s advertising business spaghetti is organised, but it seems like to me that’s where any talk of splitting Google up to create breathing room in the market should be focusing on. Breaking that core business up into several independent online advertising companies, which would suddenly have to compete with each other as well as with others on a more equal footing, would be much better for consumer than turning Chrome or Android into unsustainable businesses. In an advertising market not dominated by one giant player, there’s far more room and opportunity for smaller, perhaps more ethical companies to spring up and survive.

Perhaps I’m wrong, and maybe there is life in a business that contains everything Google does except for online advertising, but I feel like said new company would not survive in a market where it has to contend with other abusive heavyweights like Facebook and Apple.