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EU WANTS TO BREAK UP GOOGLE: SHARES UP ON INTRADAY TRADING

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EU WANTS TO BREAK UP GOOGLE: SHARES UP ON INTRADAY TRADING

Nov 26 2014, 9.58am GMT

STOCK.com

The EU's new digital commissar, Mr. Oettinger, is pushing for GOOGLE to break away its search business.

Citing competition and monopoly rules, and "the right to be left alone" policy, Brussels sees political, national and social freedoms as too dependent on Google’s search platforms.

GOOGLE has risen on intraday trading over the last week, reaching the week’s high so far of 543.28.

The power that Google wields over who is seen and who is not seen makes it one of the most politically powerful companies today. If the Merriam-Webster Dictionary actually includes the word Google defined as a transitive verb:  to use the Google search engine to obtain information about (as a person) on the World Wide Web, then both Google and politicians need to assess what personal information is available and how it can be used by both parties.

And yet with power comes vulnerability and Google has to answer to the political powers that it has in its grasp. Which means that institutions such as the EU feel they have influence over the company.

Meantime, Google have gained 90% on the Nasdaq in 5 years, revenue is expected to rise from $60 billion to $65 billion year-on-year for the end of 2014, up by 8%. However margins are down 4.5% on this time last year and shareholders have only seen a rise of 4.77%.

The answer from Google is to diversify and intensify efforts in other business sectors, seeking one of the top 3 places in the Cloud business after Amazon and Microsoft. They are also looking to expand the search business and gain more market share on digital advertising, but competitor Yahoo is already in a 10 year deal with Microsoft where Microsoft provides Yahoo with search technology through Bing and Yahoo gets a share of the search revenue, and Yahoo is now teaming up with Mozilla’s Firefox on search.

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