GOOG's Chrome is all about Wall Street . . .

GOOG's Chrome is all about Wall Street . . .

Summary: Google's launch of its browser Chrome seems to be less to do with running web applications quickly, than it is about its rapidly growing traffic acquisition costs.Google pays a lot of money to third parties for traffic directed to its search sites.


Google's launch of its browser Chrome seems to be less to do with running web applications quickly, than it is about its rapidly growing traffic acquisition costs.

Google pays a lot of money to third parties for traffic directed to its search sites. Mozilla is the largest beneficairy, it receives a payment for every Google search made by a Firefox user. Mozilla received revenues of $66.8m in 2006 and $52.9m in 2005, about 85 percent came from Google. Apple also receives payment for traffic directed to Google from Safari users.

Those traffic acquisition costs were about $87m a year ago. In its most recent quarter they had soared more than 77 percent to $154m.

With its own browser, Google can capture more traffic and reduce its payments to third parties such as Mozilla, and Apple, by tens of millions of dollars. This can have a dramatic effect on boosting its profitability and its share price.

Mozilla has repeatedly said that it can easily survive without Google. It will be interesting to see how this move will affect Apple. Industry insiders have told me that Google's payments to Apple have helped fund a large chunk of Mac OS X development.

Will Apple launch its own search service? I think it might.

Please see: If Black is the new search why not branded search?

Topics: Banking, Apple, Browser, Enterprise Software, Google

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  • Sure, this WILL reduce traffice costs, and it could reduce the ammount that

    Google pays Mozilla. But, Google WILL keep funding Mozilla, and the main thing Google is worried about is MS controlling the internet and the standards. This is to keep the standard web free and open, and keep Microsoft from using the browser and desktop to screw Google.
    • MS out to screw Google, or

      giving people the choice not to have their every move tracked on the internet.

      What kind of privacy features will google build into their browser?

      John Zern
      • Nah. You will be tracked anyway.

        You have no choice. Neither do they. Rumor has it that
        those big American companies (Microsoft, Google, etc)
        have a very secretive agreement with US Government
        (NSA, FBI etc). My professor back in my university
        told me that MS even provided some exclusive keys for
        NSA to access information on any Windows 2000
        And that was even before the 9/11. These days,because
        of those anti-terrorist bulls***s, I don't think that
        the Governments will allow us to have true "PRIVACY"
        right surfing Internet anymore.
        • dint you realize your Prof was just BSing

          and you fell for it and even preach about it.
          • It may not be BS

            I have often wondered how many of these reported "security flaws" that need a windows patch every week were put in the code originally to provide unknown third parties a back door into computer systems.
            Recently one of the basic protocols of the internet was shown to be so open almost anyone could be listening to your data traffic.
            Hackers get into systems all of the time and some of them are caught and their exploits are "patched". Why has it proven so hard to secure digital hardware and the code that runs on it? Some of it is design flaws, some of it is inherent flaws in the actual technology itself, some is human error, some is human mischief, and some is designed right into the devices and code.

            Microsoft and Google spend a great deal of money lobbying congress, I think it would be naive to think that some sort of compromises where not made on behalf of congress from Microsoft and Google and vice versa of course.
          • A little over paranoid, but an interesting thought...nt

      • Actually, Google will have even better privacy features. They will even

        launch an isolated process, so that ALL cookies and ALL tracks are erased when you exit.
        • One born every minute...nt

    • You have to remember, when the Bush administration wanted all of your

      searching data, the ONLY one to fight it was Google. Microsoft just cheerfully turned it over.
  • Google Instill a Sense of Trust

    I installed Chrome last night, and it looks like it's been cobbled together over the past couple of weeks. Obviously a desperate attempt to steal the thunder of IE8's privacy mode.

    Google do seem to go all out to instill a sense of trust though; the first thing the installer asks is "Google is the default search engine, would you like to change this?" - how very conspicuously egalitarian of them!

    G-Portals UK
  • I would like to emphasize. Google WILL continue to fund Mozilla.

    The biggest thing for Google is to have a free and open internet based on standards and open source, and also that same free and open internet being more powerful and having more features. The very LAST thing that Google would do right now is drop funding for the best and most well known competitor to the proprietary and dumbed down internet (IE). Google will ONLY get a critical mass on powerful, feature rich, standards based browsers with Firefox, Safari, and Opera in the mix.

    By the way, let us not forget that Google will continue to fund Opera, though Opera may have to cut costs and stop developing as much themselves, and be more of an integrator of pieces.
    • That doesn't make sense whatsoever (NT)

  • RE: GOOG browser seeks to curb mounting traffic costs and cut payments to Apple and Mozilla

    Of course its about Wall Street. Google wants to lock you into their browser and services so you are forced to view their ads. Then they can start charging you for their services. This is typical Google.
    Loverock Davidson
  • This is a Google power play

    They are trying to grow control over the internet just like Microsoft gained control of the operating system market. Nobody should have that much control in either domain. If Google really wanted to help the open source browser community, they should have given their ideas to Mozilla. Not opened another front which will take resources and market share from them.