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Google will rather split up the internet by pulling out of Europe than follow this. And isn't ads the only profitable business Google has? If they sell it, ther

Google will rather split up the internet by pulling out of Europe than follow this. And isn't ads the only profitable business Google has? If they sell it, there Google search, Gmail etc couldn't exist.

senko 3y ago
> Google will rather split up the internet by pulling out of Europe than follow this. Citation needed.
malermeister 3y ago
They already have a lot of their revenue tied up in their Irish entity. An exit might not be feasible.
vooffle 3y ago
If Google's ad business was split from the rest, it would mean the ad business having to pay the search engine business and other Google businesses to advertise on them.
gmerc 3y ago
Bullshit. See Facebook in Australia or Hongkong. See every company that went into china anyway. For the EU, google leaving would be a feature.
anhner 3y ago
Sure, they'd rather lose 50B+ than do this...
Gareth321 3y ago
EMEA is Google's second largest market, and it's not even close for competition. There is no way Google would be willing to cut revenue by $90 billion annually. It would be corporate suicide. The single greatest loss event of investor capital in history. They'll comply, just like Apple will comply with the DMA. They have a fiduciary responsibility to their shareholders. Unlike the U.S., E.U lawmakers can't be bought.
- ChuckNorris89 3y ago
  > Unlike the U.S., E.U lawmakers can't be bought. I'm curious if you're so naive to believe that or if you were trolling and wrote that with a straight face. Because cronies like Ursula Von Der Leyen would like to disagree with you.
  - permo-w 3y ago
    if EU lawmakers could be bought in the same way US ones can, there is absolutely no way that GDPR or the DMA would have been enacted. this isn't to say that they are completely unbuyable, but look at how much the companies affected had to lose. literally tens of billions in some cases. there's evidence online that they were pumping money into any channel possible to try and stop the DMA, but they failed
    - sebzim4500 3y ago
      If US lawmakers could be bought the same way that EU ones can, there is absolutely no way that they would have increased the corporate tax rate from 19% to 25%. /s
      - permo-w 3y ago
        that's a false equivalence and you know it
- nonethewiser 3y ago
  But how much is it from the ad business that the EU is breaking up in this hypothetical?
  - Timon3 3y ago
    Why does that matter?
- YetAnotherNick 3y ago
  You are including an entire continent and countries like UK, UAE, Saudi for coming up with this revenue number for EU. Also my guess would be that profit margin will be much lower than US due to all the regulations like GDPR. Google's overall ad revenue is 4x greater than EU total revenue. It will definitely loose EU business than it will loose ads business. But yeah there are always legal loophole in things like this and likely it could keep both.
hnbad 3y ago
Breaking out the ad business doesn't mean selling it, it means creating red tape through layers of indirection between the ad business and the rest of the company. In essence, this would be no different than the split between Alphabet and Google (or Waymo, even): https://www.kamilfranek.com/what-companies-alphabet-google-owns/ https://www.kamilfranek.com/what-companies-alphabet-google-o... "Pulling out" would be a massive blow to Google's revenue and shareholder value, even compared to the massive costs of restructuring the business to comply with the breakup. It would be economical suicide and career suicide for the CEO.
jefftk 3y ago
This is about ads on non-Google websites. That business could be spun off without making Search/Gmail/YouTube/etc non-viable.

senko 3y ago

> Google will rather split up the internet by pulling out of Europe than follow this. Citation needed.

malermeister 3y ago

They already have a lot of their revenue tied up in their Irish entity. An exit might not be feasible.

vooffle 3y ago

If Google's ad business was split from the rest, it would mean the ad business having to pay the search engine business and other Google businesses to advertise on them.

gmerc 3y ago

Bullshit. See Facebook in Australia or Hongkong. See every company that went into china anyway. For the EU, google leaving would be a feature.

anhner 3y ago

Sure, they'd rather lose 50B+ than do this...

Gareth321 3y ago

EMEA is Google's second largest market, and it's not even close for competition. There is no way Google would be willing to cut revenue by $90 billion annually. It would be corporate suicide. The single greatest loss event of investor capital in history. They'll comply, just like Apple will comply with the DMA. They have a fiduciary responsibility to their shareholders. Unlike the U.S., E.U lawmakers can't be bought.

ChuckNorris89 3y ago
> Unlike the U.S., E.U lawmakers can't be bought. I'm curious if you're so naive to believe that or if you were trolling and wrote that with a straight face. Because cronies like Ursula Von Der Leyen would like to disagree with you.
- permo-w 3y ago
  if EU lawmakers could be bought in the same way US ones can, there is absolutely no way that GDPR or the DMA would have been enacted. this isn't to say that they are completely unbuyable, but look at how much the companies affected had to lose. literally tens of billions in some cases. there's evidence online that they were pumping money into any channel possible to try and stop the DMA, but they failed
  - sebzim4500 3y ago
    If US lawmakers could be bought the same way that EU ones can, there is absolutely no way that they would have increased the corporate tax rate from 19% to 25%. /s
    - permo-w 3y ago
      that's a false equivalence and you know it
nonethewiser 3y ago
But how much is it from the ad business that the EU is breaking up in this hypothetical?
- Timon3 3y ago
  Why does that matter?
YetAnotherNick 3y ago
You are including an entire continent and countries like UK, UAE, Saudi for coming up with this revenue number for EU. Also my guess would be that profit margin will be much lower than US due to all the regulations like GDPR. Google's overall ad revenue is 4x greater than EU total revenue. It will definitely loose EU business than it will loose ads business. But yeah there are always legal loophole in things like this and likely it could keep both.

hnbad 3y ago

Breaking out the ad business doesn't mean selling it, it means creating red tape through layers of indirection between the ad business and the rest of the company. In essence, this would be no different than the split between Alphabet and Google (or Waymo, even): https://www.kamilfranek.com/what-companies-alphabet-google-owns/ https://www.kamilfranek.com/what-companies-alphabet-google-o... "Pulling out" would be a massive blow to Google's revenue and shareholder value, even compared to the massive costs of restructuring the business to comply with the breakup. It would be economical suicide and career suicide for the CEO.

jefftk 3y ago

This is about ads on non-Google websites. That business could be spun off without making Search/Gmail/YouTube/etc non-viable.