I think that it is safe to say that Larry Page, Google Inc (NASDAQ:GOOGL)‘s CEO, couldn’t imagine in his wildest dreams the fate that European Parliament has bestowed on his company. The search driven business is called upon to break up. On Bloomberg, Trish Regan reported on this latest development from Europe.
“[…] Google Inc (NASDAQ:GOOGL) has more than 90% of the search market in many European countries and it is being targeted in Europe by those who say that the commission should consider legislation if it can’t wrap up an anti-trust probe, […],” informed Regan.
The whole issue is based on the premise that Google Inc (NASDAQ:GOOGL) is giving preference to its own services, rather than those from other companies, which are paying the tech giant through Adwords etc. to actually top the search results. Hence the commissions seeks that the search giant unbundle its services from the search business. A considerable amount of contemplation was involved before the controversial decision was reached. Nearly four years actually.
Google Inc (NASDAQ:GOOGL) is clearly not the sort of company that could view this split as something positive, which could potentially lead to better valuation. Search forms a major part of the business and a split doesn’t really make sense, according to the panellists on Bloomberg.
Even more surprising is that in the end it wasn’t the privacy issue that many would have thought would force some sort of regulatory pressure on the tech giant. Instead, an antitrust case has cast a thorn in the company’s structure.
How sharp this thorn is, or how hard Google Inc (NASDAQ:GOOGL)’s armor is, remains yet to be seen. However, the company was in no way pleased with the decision.
Google has been facing a pull back of sorts since November. However, the stock was up 0.32% at the closing bell of the last trading day.
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