Internet imperialism
The WSJ seems to have some good sources within Google, offering insight into both the rumoured acquisition of Groupon and its long-awaited entry into the e-book retailing game.
It must be noted that the WSJ predicted Google would dive into e-books this summer, but many obstacles have contributed to the delay. Not least of these will have been the many legal objections to Google scanning millions of books and making them available online. These have presumably been dealt with now, leaving the coast clear.
The report quotes Scott Dougall, a Google product management director as saying the e-book venture, which will be called Google Editions, will launch in the US before the end of this year, and internationally in the first quarter of next year.
The model will be cloud-based, centred around a Google account, and thus be available through any device with a web browser. Books will be available direct from Google and via third party retailers.
Google will have its work cut out to make an impact in an e-book market currently dominated by Amazon and Apple. A recent study reveals the two have almost four fifths of the market, with Apple rapidly grabbing share from Amazon.
This move comes at a time when Google is diversifying rapidly. It has been widely reported that it's on the verge of buying deal-of-the-day company Groupon which, together with the proposed acquisition of travel search outfit ITA, would massively increase Google's presence in e-commerce.
With every new acquisition regulatory authorities quite rightly renew their scrutiny of the effect on competition of so much Internet real estate being owned and controlled by one company. Even if the Groupon and ITA acquisitions are approved, you have to wonder if Google will be allowed to keep acquiring. Then again, once Apple starts spending some of its $50 billion war chest, the competitive environment could look very different.
