The Eu's $5 Billion Fine Is Bad Tidings For Google—But It's Non Most The Coin (Goog Actually Needs Chrome Together With Search On Your Phone)

From Fortune:

Unlike Facebook, Google has as well as thence far managed to rest out of the spotlight alongside abide by to how it capitalizes on information that people willingly—if unknowingly—give the company. With European Union regulators’ $5 billion fine on Google for violating antitrust law, the expose may move coming to an end.

While this province of affairs feels similar a boom from the past—reminiscent of States of America regulators’ 1998 antitrust activity against Microsoft—the stakes similar a shot are quite different. On the surface, it appears to move a dispute over anti-competitive conduct inward the footing of software as well as hardware. But it is actually virtually access to highly personal data, as well as the rattling trace of piece of occupation organization model that underlies Google’s enormous profitability.

In this case, the European Union wants Google to halt requiring smartphone manufacturers to preinstall its Chrome browser as well as to construct Google’s search engine the default. Regulators too desire Google to cease banning band manufacturers from using unofficial, or “forked,” versions of the Android mobile operating system. Google said inward answer that “Android has created to a greater extent than selection for everyone, non less,” as well as that the fellowship would appeal the European Union decision.

Google makes most of its coin selling targeted ads, to the melody of a probable $60 billion inward mobile advertising revenue only this year, according to eMarketer. The critical discussion hither is “targeted.” About 80% of all smartphones produced today run Android, providing Google alongside a massive user base. The to a greater extent than precise the information Google has virtually the users of Android phones, the to a greater extent than precise its ads tin strength out be, as well as the to a greater extent than advertisers volition pay for them. For an advertiser, the most expensive keywords are those that offering it the unique potential to target customers alongside a high likelihood to stick alongside the construct for the balance of their lives, such equally those searching for phrases similar “insurance.” Google tin strength out construct to a greater extent than than $50 from a unmarried click on an insurance promotion keyword.

Google’s deals alongside manufacturers grade it an incredible total of access to user data. Google gives away its operating organization for free, which attracts manufacturers. It requires the manufacturers to pre-install software such equally its browser as well as search engine, which attracts users. It too treats app developers well. And having lots of apps as well as users attracts advertisers.

The to a greater extent than Google apps you lot have, the richer the motion painting Google’s algorithms tin strength out create of your probable interests....MORE