> WTF does "breaking up Google" actually mean?
Well for one, the ad business could be separated into the auction system and the use of the auction system on their different services.
Well for one, the ad business could be separated into the auction system and the use of the auction system on their different services.
I'm not even sure if that would work. Does Google search now have to use adwords? Will the court mandate the revenue split? Most of both entities' revenue will come from this revenue split. It's almost like spinning off the cash register in a convenience store.
It's just a lot for a court to actually do.
Meanwhile, there's a tension between eliminating monopolism and eliminating market value. A judge's decision could blast $1trn off of Google's value, and cause a general market shock.
Meanwhile, what are consumers getting out of this? Advertisers are not going to have more choice. There will be no competition induced price reductions. What's the goal here? Justice?
This stuff is basically industrial policy. To have industrial policy, we need to do industrial policy. Can't just let courts handle the whole thing.
Android could be spun off.
The whole pixel phone business as well.
GSuite could be its own thing.
I think google is still an ISP in some parts.
They’re research sections too.
Google's money comes from adwords. Adwords has two key assets. One is Google search. The other is Google's systemic ability to gather ad-useful data using android, maps, etc.
Everything else is stuff that exists to support the search/ads/data money maker or it is ways of spending the enormous profits generated by this monopoly. EG Waymo.
The first group can't be separated and retain value, unless the post break up shards contract to operate like they did before. That is basically a trust. The second group just aren't viable businesses, or aren't big.
I'm not saying it's impossible, just saying it gets real squishy and there aren't many guiding principles.
Google is able to prop up otherwise-nonviable businesses with the revenue from their cash cows. This means they are able to undercut any possible competitors in those spaces by operating those businesses at a loss.
That's the very definition of using monopoly power to push into and dominate another market.
It's not a reason to say, "Welp, we can't break that up! Then those businesses would just flounder and die!" It's one of the primary reasons to say, "We must break that up."
If the otherwise-unprofitable businesses that get spun off want to continue to exist, they'll need to find ways to raise prices and/or cut costs. In other words, they'll need to compete on a level playing field.