No doubt you’ve read the news by now that Google is going to split itself into several subsidiaries. I’ll spare you re-hash of the details and jump straight to my own theory.
I think this is a preemptive move to combat anti-trust issues.
Google is already under heavy fire from the EU and the FTC in the US is rumored to be close behind. There are going to be more investigations and allegations coming their way.
Let’s take a look at a few of the “spin-offs” to see how this might play out.
First up, Fiber. While I’m all for faster internet speeds, I’ve long dismissed Fiber as a nightmare for privacy. While techies in slow speed areas might be willing to give up anything for low latency and fast torrents, Fiber has, to me, always been about two things. One, get as many people online as you can (where Google profits) and make the speeds fast so they can do more (also helps Google). Two, monitor not just the activity of logged-in or Chrome users, but literally ANYONE and EVERYONE who uses the infrastructure. It’s the same proposition that Android has always made. Cheaper, more accessible, but every move you make becomes part of the machine learning. When Google owns not only all your search and your platform (via Chrome or Android) but also the very pipe that carries you to all of it, they have a monopoly of information vacuuming. I find it terrifying, but the FTC may well find it problematic. Spinning off Fiber makes a lot of sense.
Next let’s look at Nest. Internet of things is going to continue to grow and the Nest division is already making plays to be the frontrunner in the space. First your thermostat. Next your fire alarm. Now a household camera. And no doubt, there are more products to come. If you think all these devices are not contributing to your data profile you’re crazy. Google is using everything has to data mine you. Keeping the products area separate (on-paper) from the others may try to help reduce the “creepy” vibe most people have today about Nest.
Interestingly, Google retains several areas that logically would have made sense to break-up if you’re worried about anti-trust. YouTube for example, or Android. But for now at least, I think Google’s structure is too integrated around those products to be able to separate them. Too many engineers working too closely to split them out and lose the brain power. But it does say A LOT to me that Android in particular remains part of the “search” business.
That said, breaking out the other stuff- the moonshots, the ventures, the more ambitious and experimental stuff, means that it may be more protected from investigation if “Google” is taken-on by regulators. And for “Alphabet” protecting those trade secrets by taking them out from under the investigative umbrella may be reason enough for all this shuffle.
Bottom line, I admittedly have an open bias about Google. I have for a long time and I always will. For me, it begins with human nature. If you feel the need to put “Don’t be evil” on the wall as a constant reminder, it tells me you’re fundamentally worried about running afoul of that very mantra. Most people don’t need a daily reminder that they shouldn’t be evil. Google was built on a warning; not a value. So perhaps it’s my nature to take the most cynical view possible of the company. Maybe they’re being completely honest in their assertion that this is about making greater strides for humanity and such.
I just doubt it
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