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You're right that big companies should only be broken up if it would benefit consumers. The point I'd raise is first that you may be unaware of better alternatives because of anticompetitive behaviour by Google and second by Google's very nature they could limit the discoverability of competitors.

(I have no idea whether better competitors exist or whether Google could, let alone does, hide them.)

Antitrust cases are hard to generalize I believe. If an airline lowers prices on a route following the entrance of a (smaller) competitor, it's hard to know whether that is or should be illegal without knowing a whole lot of specifics.



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So antitrust regulators should break up Google?

To be honest, I think this country could use antitrust breakup for probably every tech giant (in addition to other industries altogether like telecom!)

I think both shareholders and the economy would benefit in the end; these breakups would make explicit the implicit relationship between these multibillion dollar business functions and, in the process, incite a profit motive that would invite competition to make the ecosystem healthier.

For example:

Google could be split roughly into ads, search, browser, youtube, mobile, and nest/devices. When the relationship of each of these divisions is made external (ads pay search, search pays browser to be the default, browser pays mobile to be the default, etc) then we we can now have healthy competition, like bing bidding to become chrome's default search or facebook ads bidding to serve google search ads.

I haven't thought it out as much but I'm certain society could benefit from breaking out a few major business functions of amazon, of apple, of microsoft, of facebook, and so on.

In fact, if we were a really forward thinking society we could write a law rather than rely on antitrust action to restrict tech companies operating in the US from combining too many business functions - did it ever make sense to allow content discovery platforms to also be ad distribution platforms? Perhaps we should categorically disallow that.

Of course, I'm sure the free market minded of you will immediately point out - why do we want government dictating what private companies can and can't do? I sympathize with this sentiment, but ultimately the point of democracy is that the democratically elected government can make fair rules with the goal of promoting a better society.

If we can make a better society by separating content distribution from content monetization, I don't see why we shouldn't. If we can make a better society by separating marketplaces from their participants (e.g. amazon & AmazonBasics) then I don't see why we shouldn't.


If anything, I think this is a great reason why Apple, Google, Amazon and Facebook should be broken up.

There's an argument from an anti-monopoly / competition point of view. But perhaps organisational as well?

Perhaps smaller companies which favour local (product focused) concerns would actually benefit all of us?


It's interesting to try to imagine how a break-up like the Bell breakup would even function with Facebook or Google.

Unlike previous uses of Antitrust law, it's not really plausible to simply split along geographic boundaries, sorting a few shared assets into one company or another, since the whole point of these companies is irrelevance of geographic boundaries.

Similarly, splitting along product lines is particularly challenging in tech companies, where everything is extremely integrated -- nevermind that Facebook and Google each have essentially one profit center, in advertisements. You couldn't very well split Google Flights out into its own corp. Even if you did, the search corp would still dominate.

Even if the political will is summoned to apply Antitrust legislation to tech giants, I'm not sure what an enforcement would look like.

I think what this actually points to is that Antitrust isn't the right lever: the problem is lax regulation, lax enforcement of existing regulation, and bad policy around lobbying efforts.


For the sake of discussion let's just say Google is broken up. Let's also say that it's broken up such that Google Search, Google Ads, and YouTube are separate entities (among others).

In this new broken up set of companies, what's stopping them from remerging like Bell? Also, what's stopping them from giving each other favorable partnerships?

Personally I find this entire exercise a waste of time - rather than break up Google we should just acknowledge that certain industries have certain types of attributes that result in necessarily "anti-competitive" behavior. In Google's case, since it's an internet company I would say the more users it has the harder it is to beat - with that being said they should just create some sort of progressive taxation as a function of users.

Your users in the USA equal 90%+ of the country, you are subject to rules A. Your users in the USA equal to <10%? You are subject to rules B and are subsidized directly by those whose users equal 90%+. If all companies are less than 50% than we use rules c, for example.

The same logic could be used for manufacturing, utilities, internet providers, and more.


The argument for breaking up these companies is not based on punishing them for wrongs. Instead, it’s based on the idea that they have so much manifest power that their natural order of business inherently has the effect of “abuse of monopoly (monopsony) power”, regardless of any ‘unfair intent’.

Take Google as an example: they provide a large number of incredibly valuable services to the public (in my opinion). The cost for those services is a vast centralized surveillance system that cannot be reasonably avoided by basically anyone taking part in the first world economy. If Google we’re less hegemonic, then there would be at least a chance for alternatives that don’t either knock you out of contemporary society or simply change the nameplate on the panopticon to exist.

An exception that proves the rule here is DuckDuckGo: it’s a scrappy, functional search engine that lets people opt out of part of Google’s oversight —- except that it doesn’t; the remainder of Google is still in so many aspects that it can effectively bypass the loss of personal data that goes to search. If YouTube, Gmail, and AdSense were also separate blocks, though...


I think this is kind of the point. If Google’s broad portfolio of products are so coupled together that they massively leverage data/technology from their other products to the point where no startup can meaningfully compete with any of their products, they should be broken up.

I’m sure it was really inconvenient and difficult for the once-shared infrastructure of Standard Oil or AT&T to be broken up among different companies, but it was necessary. Google can’t hold the market hostage because it’s “too big to be split”. Changing the status quo is difficult, but that doesn’t mean “too hard, just leave a monopoly, oh well!”


Large market share just doesn't mean much unless the market has non-trivial barriers to entry that make competition infeasible. And that's certainly the case wrt. the 'platform'-like businesses of Google and other large tech firms. They should simply be required to be interoperable with other players in the market, and a break-up is definitely one way of pursuing this.

The way to compete with big companies is to make new ones, and create an environment that fosters new ones, like making affordable healthcare.

There is no reason for breaking up Google or Facebook. Their only monopoly is over advertising, and most people don't care about that. Advertising isn't a thing people crave.

If anything, break up the ISPs like Comcast!!


No, antitrust laws should break them up.

Agreed. We can't just break apart Google and call it a day.

There are plenty of gigantic corporations who are probably looking forward to eventually acquiring parts of Google. I wouldn't put it past Verizon, who has not only partnered with Google but also fought for telecom control against them. Don't we also need to break these companies up as well? Or do they have too much influence in the government? Ajit Pai, for example, famously worked for Verizon before government.

I'm not trying to protect Google. But I just think that the government needs to find a way to enforce these breakups more evenly or else it just leads to further consolidation, as you pointed out.


I suppose I see consolidation which is a function of the mechanics of the market as a good reason for nationalization and consolidation which isn't as a good reason for antitrust. So maybe Facebook/Google should be nationalized? I think the real test of that though is to break them up and see whether consolidation reoccurs. I'd love to have lots of competing Googles and I prefer that world to the one with a nationalized Google but I prefer either of those scenarios to having just one private and unaccountable Google.

I’m all for breaking them up but I’m not convinced it will revitalize the industry. Google is enormous. Even if it is broken up, the resulting pieces will still be massive, and almost impossible to compete against.

I like your point about reducing consolidation to increase variety in control and management. It’s an interesting point, but I’m not sure there’s any actual law they are breaking by just owning and running multiple businesses. I would have thought legally speaking they would need to perform some form of market abuse to justify enforcement. Yes there have been abuses and they should be held to account, but we have laws fur that already and breaking up companies doesn’t do anything to stop such abuses. Google and Facebook are separate businesses and the still colluded. It’s the abuse that’s illegal in such cases, not the ownership structure.

I dint see how you can split off Google search from advertising things. Would you split up a newspaper and the business function that sells ad space on it? How? I suppose ads do make it less useful, but honestly it’s still the best by far, even if some others are now mostly good enough.

I’m with you on preventing the buying and elimination of competitors, but there are already mechanisms to do that. All acquisitions have to go through regulatory review.


The problem with breaking them up is that the search engine is the whole ballgame. Separating the search engine from, say, gmail would have negligible benefit. It might even make things worse if the newly independent gmail company started doing a lot of the scummy things free email providers sometimes do to make a buck against everybody's existing gmail account.

What you really need isn't a breakup, it's some way to foster sustainable competition for search.


I think the major tech companies should be broken up. However its not 1982 anymore. The global market(mainly China) threw a money wrench into the system. If you break up Google, that's mostly to the benefit of the CPC which will results in a market that's potentially worse than the one we have now.

That doesn't actually matter. Its a 'poor Google' argument, not an argument against breaking up a monopoly. The new divisions would have to figure out how to survive, like anybody else in the market. Definitely 'not our problem'

Interesting, I have never heard this argument before. I don’t think there is a case to be made that the individual entities that make up Google or Facebook couldn’t operate independently. Google Search, G Suite, Google Cloud Platform, Facebook, Instagram, WhatsApp, etc. are all viable businesses in their own right. Many of them would still even qualify as “tech giants” eg WhatsApp is absolutely enormous with 2B monthly active users. In other words, a breakup wouldn’t result in failure and therefore wouldn’t satisfy the too big to fail criteria.

Wouldn't breaking up Google into companies with complete control over their respective markets not really achieve the desired goal?

E.g. If Android becomes it's own company, it's still the only player in the mobile operating system space. If search was it's own company, it's still the dominant search engine.

Admittedly, I wasn't around at the time, but what use was breaking up Ma-bell into the sub companies, from a choice perspective? I certainly understand that from a telephony devices perspective, consumer choice drastically increased, since third parties could now make telephones, but you still ended up with local monopolies for all of the fractured components.

Also, how is search's integration into other products harmful in all circumstances? It's extremely convenient that typing the name of a restaurant into Google search gives me reviews, the menu, directions, etc.

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