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governments and Google -1

09:14 12-Oct-20


Perhaps the most important thing I read this weekend is that the DoJ is considering forcing Google to sell off Chrome, as well as parts of its advertising business.  I honestly didn't think the American regulatory regime was that smart.  As I've written before, Google copied the Firefox code then played dirty with both its benefactor and customers, making Chrome a lynch pin of its business dominance.

I've also pointed out that any communications from Washington ahead of the election next month are just posturing.  Though Congressional testimony is scheduled for the 28th, and the DoJ will probably formally initiate soon, the character of any actual action will depend on the next administration.  Even so, just the fact that the DoJ has recognized reality is noteworthy.  The other point that matters is the the Oracle case finally being heard by the short Supreme Court, which is shaping up more or less as expected, so far.  I still see no way that Google closes on Fitbit this year, even if we get a decision soon, and think that Google win would reduce the chances of it closing at all.

Whether or not that deal might be derailed entirely also depends on action from the other side of the pond, where we the same motivation, but a different situation.  Europe is much steadier in its policy, and assuming we get a meaningful indication on Brexit this week, all sorts of other matters could start to kick into gear.  I reiterate that only stimulus and the election results matter to the market for now.  However, anyone investing in Google needs to be looking much farther out than this year.