Recent proposals suggest forcing Google to sell its Chrome browser.
- Tom Blomfield criticises competition regulators’ approach to Google’s business structure.
- The former Monzo CEO questions the need for increased regulation.
- Blomfield highlights the consumer benefits provided by Google services.
- UK regulators have also scrutinised Google and Monzo in separate instances.
Last week, the US Department of Justice floated a significant change to Google’s business model, pushing for the divestiture of its widely used Chrome web browser to curb Google’s alleged monopoly. This suggestion has sparked commentary from Tom Blomfield, co-founder of the digital bank Monzo, who voiced his opinions robustly on social media, describing competition regulators as overly zealous.
Blomfield, who is also associated with Y Combinator in San Francisco, strongly opposed the proposed breakup, stating there is no inherent issue with Google’s control over Chrome. Highlighting that Chrome holds a dominant 65% market share, he argued that the regulator’s interference was unnecessary, pointing to his personal choice to use Google services as a sign of their value.
Moreover, Blomfield defended Google’s broader ecosystem, listing services like Maps, Gmail, and Android as examples of significant consumer benefits. He asserted that the surplus value created by such companies is substantial and questioned the regulators’ tendency to assume more control is beneficial, advocating instead for a reduction in regulatory measures.
This issue comes amid UK’s ongoing scrutiny of Google’s actions. The Competition and Markets Authority (CMA) has expressed concerns regarding Google’s prioritising its own products in the online advertising domain and has made inquiries into Google’s investment in AI firm Anthropic. Although no further action was deemed necessary, the CMA still maintains a watchful stance.
The CMA has previously examined practices within Monzo as well, particularly focusing on the bank’s handling of departing customers. Ordered to rectify its procedure, Monzo was required to improve its provision of financial documents to these clients, following the regulator’s criticism of their previous approach.
Blomfield challenges increased regulatory intervention, endorsing consumer choice and benefit over enforced divestiture.
