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What Is Everyone Missing from the Alphabet Google Restructuring?

There is more to learn from the Alphabet-Google restructuring than Google’s PR narratives.

First for those paying close attention, this restructuring and Alphabet branding should spotlight Google’s truly amazing accomplishments to date, and Alphabet-Google’s breathtaking ambitions going forward.  

At core this restructuring formalizes Alphabet-Google’s very real transition, from a Gcosytem focus of disintermediating and dominating much of the Internet and tech sectors, to a Gconomy focus of disintermediating and dominating much of the rest of the economy.    

The Market’s Ignoring Google’s Many New FCC Common Carrier Liabilities

I.  Summary

Google’s market capitalization has approached a half trillion dollars as its stock hit an all time high, because of a positive quarterly profit surprise and because Google’s new CFO signaled that “Google cost discipline” may no longer be an investment oxymoron.

The market appears to be ignoring that Google’s legal status as a corporation changed in 2Q15 to an FCC Title II regulated common carrier that is subject to very strict and preemptive behavioral non-discrimination requirements to mitigate potential abuse of market power on Google’s network -- per the FCC’s new Open Internet Order which reclassified Internet infrastructure as Title II common carriage regulated to enforce strict net neutrality.

This analysis of Google’s many new common carrier liabilities has four parts: I) the investment and regulatory relevance of Google being a common carrier; II) the evidence of Google being a major Internet access player via the surprising size of its Internet infrastructure, communications, traffic carriage, and market power; III) a listing and explanation of Google’s many new FCC common carrier liabilities, including nine potential net neutrality violations, three privacy, and three transparency; and IV) a conclusion about what this could mean for Google and its valuation going forward.

Google’s Open Defiance?

Why is the world’s leading crusader for openness and transparency so closed and non-transparent?

Why does Google fiercely defend the public’s right to know virtually everything about everyone else, but does not believe the public has any right to know similar things about Google?

Why is Google passionate about discovery of the world’s information, but so fierce in fighting legitimate discovery of Google information?

EU Charges Spotlight Google’s Self-Dealing Power

Facts belie Google’s rote denials that it is dominant, and that favoring its own content over competitors is anti-competitive in the EU. As this post will prove below, the public facts are overwhelming that Google is dominant and self-dealing.

But first, look closely and witness that the entirety of Google’s antitrust defense is essentially political -- that the EU’s antitrust law and precedent shouldn’t be different or tougher than America’s. Specifically, Google essentially is arguing that the EU shouldn’t have a lower market share threshold to be legally considered dominant and the EU shouldn’t have presumption in law that if dominant, the dominant company has “a special responsibility not to allow its conduct to impair competition on the common market.”

That’s wishful whining; it is not a legal antitrust defense in Europe.

It is only fitting that Google faces a Danish prosecutor in EC VP Margrethe Vestager. That’s because Google currently is acting out the role of emperor in the most famous Danish fable by Hans Christian Anderson, the “The Emperor’s New Clothes.”

Nationalistic Net Neutrality Naiveté

The New York Times’ editorial, “Global Threats to Net Neutrality,” scolds the world for not following the FCC’s nationalistic concept of net neutrality.

They feign shock and indignation that Europe and India would dare think of politically doing what the FCC has done and impose their own national industrial policies -- under the convenient political cover of “net neutrality.”

America’s elites naively imagine that other countries’ authorities don’t “get the joke” of the FCC’s politically-contrived net neutrality policy.

Other countries’ authorities are not as gullible and pliant as American elites imagine them to be.  

They know “net neutrality” has become an increasingly vacuous political slogan, whose definition conveniently changes meaning like a chameleon changes colors.

They know the FCC is pressuring them to do as the FCC says and not as the FCC does on net neutrality.

Googlegate II: The Evidence DOJ Made Google Criminal Case Go Away

The FTC’s politically messy closure of the FTC-Google antitrust investigation in 2013, chronicled in “Googlegate: the FTC Cover-up Evidence Piles Up,” is not the only major Federal investigation into Google’s business practices that Google’s political influence appears to have made go away in 2013.

FCC Title II Protectionism Creates a U.S. Digital Single Market like EU’s

On February 26th, the FCC executed President Obama’s call to “implement the strongest possible rules” to regulate the Internet as a telephone utility under “Title II” of the Telecommunications Act.

Legally, the result of this “reclassification” was for President Obama and the FCC to assert regulatory jurisdiction over the Internet ecosystem, creating a de facto American “Digital [Internet] Single Market” industrial policy, like the European Commission is in the process of creating for the European Union.

Legally, America now has a single digital telecommunications/Internet market/ecosystem because the FCC is effectively reclassifying Internet traffic as Title II telecommunications and Title II is a holistic, end-to-end, 1934 regulatory regime designed for the FCC to decide most everything in the assumed monopoly telecommunications ecosystem from originating and terminating local access, long distance, phone and network equipment manufacturing, directories, etc.

Google's Anti-Conservative Values -- CPAC 2015 Google Panel

I was asked to speak at CPAC 2015 on a February 28thpanel at National Harbor on Google entitled: “The United States of Google: Big Brother & Big Data” with Seton Motley of Less Government and Erik Telford of the Franklin Center for Government and Public Integrity.

My power point presentation, “Google’s Anti-Conservative Values,” for the first time contrasted the traditional conservative values of the American Conservative Union with Google’s values.

Below is an outline of my remarks:

Google Has Anti-Conservative Values

Why is Google Obstructing Justice in Mississippi? EC Pay Attention

Google’s recent bullying and intimidating behavior in Mississippi looks terrible and smells bad.

Consider for yourself if Google’s corporate behavior in Mississippi is how innocent people or a responsible corporation act, if they have: a clear conscience, done nothing wrong, or nothing to hide?

What is going on in Mississippi that warrants close outside attention?

Google has filed an highly-unusual, and hyper-aggressive lawsuit in federal court to try and quash a Mississippi Attorney General’s subpoena investigating Google’s alleged willful, continued, aiding and abetting of many criminal activities via advertising, given that it has found initial evidence to indicate that the criminal behavior that Google admitted to in a 2011 $500m DOJ Non-Prosecution Agreement may be continuing to this day.

Breaking Privacy Promises is How Google Works - New Student Privacy Pledge

Google quietly signed the U.S. Student Privacy Pledge, which makes its new privacy representations legally enforceable by the FTC and State Attorneys General.

This is a much-under-appreciated, high-risk decision for Google because its new student privacy commitments conflict with Google’s Apps for Education contracts with schools, and it is antithetical to Google’s longstanding business model, practices, and privacy track record.

Google may already be breaking this privacy promise because it is “How Google Works” -- as you will learn below.  

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Q&A One Pager Debunking Net Neutrality Myths