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Anti-trust worries could split Google platforms

by Shaun Nichols

14 Apr 2011

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Google has been getting some tough lessons recently in what it is like to be a technology kingpin.

The company has found itself in the crosshairs of government agencies around the globe over the years, as it has moved from a successful startup, to an emerging industry giant and one of the largest brands on the planet.

In the process, Google has spawned several platforms that have grown to become dominant forces in their markets. Google search claims nearly 90 per cent of the market, while the company's advertising platform similarly dominates its sector.

Meanwhile, Android is becoming the world's most popular mobile operating system, and Chrome has a respectable slice of browser use as well.

With that growth has come a myriad of headaches. Practices that were once considered standard moves in fending off competition are now on that borderline of anti-competitive behaviour.

Things are also only going to become more complicated for Google. As the company pokes its head into new markets, and its side projects become more successful, the company will see its anti-trust problems grow.

The firm's products are increasing in popularity, and government groups are becoming more wary of its position in the market, and Google might be well advised to consider letting some of its brands spin off as independent companies.

Back in the 1980s, the US government made a landmark ruling when it declared phone carrier AT&T a monopoly and ordered that the company divide itself into a number of independent regional carriers.

The move split 'Ma Bell' into a group of smaller companies that could compete in an open market, and effectively brought competition back to the telecoms industry.

A similar move was considered in 2000, when the original ruling was handed down in Microsoft's landmark US anti-trust case.

The decision was eventually overturned, and Microsoft cut a settlement that kept itself intact, but it showed that when a company gets too big the best move can often be to split up some of its operations.

As Microsoft was battling for its brand in court, a startup founded by a pair of Stanford University students was looking to enter the search engine market.

The simple yet powerful Google search service would prove a hit and, over the first decade of the 21st century, the term 'Google' became synonymous with running a web search and a symbol of the technology sector's recoveyr from the dot-com crash.

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