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This is a big move, which might also possibly help with EU anti-trust accusations by splitting up the big-ol' monolithic GOOG into functionally separate units.



Did I miss something in the announcement? When people say that Google is "monolithic", they're saying that Google contains Youtube (#1 video site), search (#1 search), Android (#1 mobile OS), maps (#1 map site), Gmail (#1 email site?), and G+ (Facebook competitor). These companies appear to remain inside the Google corporation after the "restructuring", and so this doesn't ameliorate any of EU's concerns.

I think this is more about changing what Larry and Sergey do all day.


"so this doesn't ameliorate any of EU's concerns"

The announcement seems deliberately vague. You're right in that it doesn't specifically address the EU concerns, but it creates a structure where that's easier to do.


I don't see how it does that.


Two main areas.

It prepares you, in terms of financial visibility, experience, etc, if the most painful of anti-trust remedies (breakup) ever happens. AT&T, for example, would have likely proposed different terms for their breakup if they had better visibility into how Western Electric would have performed on its own.

It provides more public financial visibility into some areas of concern, early. For example, it looks like Google fiber isn't staying with Google. Google fiber is probably a concern for at least US anti-trust regulators.


The new structure won't affect the EU's investigations, as you had stated earlier. All the components the EU will whine about are still under the Google subsidiary (Search, Maps, YouTube, Android).

The only companies exiting from Googles purview are Calico, Nest, Fiber, Ventures, Capital,and X. None of which were likely candidates for antitrust prosecution.


It's chess, not checkers. One move at a time. Also, minor, but Fiber would be an interest point for anti-trust, just not in the EU.


You forgot Chrome - #1 web browser


Yeah, is Chrome becoming a separate company?

"Under the new operating structure, its main Google business will include search, ads, maps, apps, YouTube and Android and the related technical infrastructure (the “Google business”)"


I think this is more about changing what Larry and Sergey do all day.

This is in line with their prior strategery of continually maneuvering towards "give us more authority but no responsibility."


I would go one further, and say that's the primary motivator. Preemptive restructuring.


Although what often happens is that now divisions compete against either in suboptimal ways. Search and Maps are separate? Great, until Search decides maps are really cool and starts building their own version, again. It takes a strong hand at the top to prevent division heads from viewing their peers as rivals.


I'm pretty sure Search and Maps will still be operating under the Google organization. They're just spinning off their more "wacky" projects that aren't directly related to Internet technology.


Agreed, though it's not the wacky stuff that's drawing the ire of antitrust regs.


Right, this is the real reason this is happening. Anticipating and staying 1 step ahead.


I also think this is the case :)


I would hope the EU can see right through transparent moves like this, but I suspected this as well.




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