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cover of episode Is a Breakup of Google Coming? Australia’s Move to Ban Young Teens From Social Media, and How to Engage Students in the Classroom

Is a Breakup of Google Coming? Australia’s Move to Ban Young Teens From Social Media, and How to Engage Students in the Classroom

2024/11/27
logo of podcast The Prof G Pod with Scott Galloway

The Prof G Pod with Scott Galloway

Key Insights

Why might a breakup of Google be unlikely despite potential antitrust penalties?

CEOs and controlling shareholders prefer managing large companies for higher compensation and prestige, making them resistant to breaking up even if it maximizes shareholder value. Additionally, the perceived efficiencies between coordinating and cooperating units create barriers for competitors in digital marketing.

What are the potential benefits of breaking up tech giants like Google and Amazon?

Breaking up these companies could lead to significant value unlocking for shareholders and reduce the concentration of power, lowering rents charged to consumers and businesses. It could also stimulate competition and innovation in the marketplace.

Why is Australia considering banning social media for children under 16?

Australia aims to prevent online harms such as predatory behavior and harmful content pushed by algorithms. The proposed legislation would require social media platforms to actively protect users by regularly reviewing and addressing safety risks.

What are the potential challenges in implementing an age restriction system for social media?

Challenges include verifying users' ages through methods like biometric verification and government identification, which raise privacy and security concerns. Social media companies, which profit significantly from advertising to young users, may resist these measures.

How can a professor effectively engage a small group of students in a classroom setting?

Engaging a small group involves creating a robust conversation where each student speaks at least once. This can be achieved through active debate and critical thinking exercises, ensuring every student participates and feels comfortable contributing.

Chapters

Scott discusses the potential outcomes of the Google antitrust case, including the possibility of a breakup into separate companies like AI, Cloud, YouTube, and Waymo.
  • Google could be broken up into four separate companies: AI, Cloud, YouTube, and Waymo.
  • YouTube commands more viewership time than Netflix and could be worth more than Bank of America if spun off.
  • CEOs prefer large companies for higher compensation and prestige, making a breakup unlikely.

Shownotes Transcript

Translations:
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And I think there will be kind of disillusionment with trump by many voters in two thousand twenty six. I don't think he can create miracles, but people will have to see, oh.

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Welcome to the property post office hours. This is the part of the shower. We answer your questions about business, big tech trees, neural and whatever else is on your mind.

If you like to limit a question, please email voice recording to office of public to mediate. Come again. That's office hours of prop. Immediate comes. So with that first question, I have not seen or read .

these questions. Hi, Scott. I'm adam from chicago. I'm a professor of large public university and am a big fan of the pod, especially your views on higher education.

I had a prediction for twenty twenty five that I want to share to get your perspective, I think the google anti trust case will lead to a breakup of google in the four separate companies, certain A I cloud, youtube and way mo. This will unlock significant value for a mega cap stock that is under perform compared to its peers. If this happens, other making caps may follow you. What do you think? And thanks.

I am from chicago, and thanks to the question, professor, you're thinking rationally and I have on the hard way. Ah that's not how this market works. What's going on with the google? Any trust case in twenty twenty trumps justice department through the antitrust hammer ag.

Google claiming they had an illegal adolay and online search. This is a big deal. IT was the first antitrust case of its kind in the internet area since then.

Governments argue that google made illegal deals to ensure search engines that fault on most devices. Ah now the stakes are norm. The stakes are getting higher.

A judge already ruled against google in part of the case in the second trust, coming up in April to figure out what kind of penalty they might face. They were found guilty of monopoly maintenance. They paid the biggest feet to apple to be the default search engine, and they thought no one else could compete with them.

A tanti competitive to behavior. They're trying to figure out what the remedies of this, uh, guilty verdi would be. And they could be a regulator sitting there and telling them you can do this, you can do this to break up some sort of fine.

So the question you're asking is could the remedy be a break up and what without break up look like, uh, I can't see a big bro confident for distinct units and you're saying A D conlon oration without more shared der value. And I actually believe you I think in comments what you tend to find is the whole is less than the sum of its parts. And the thing you didn't mention is that i've done some analysis around youtube.

If you ask most people what is the leading extreamly platform, they say netflix. And they would be wrong. Netflix commands about eight percent of total viewership time or as google excuse me, while alphabet s youtube gets about ten percent and if you applied the same multiple revenues, youtube does more revenues than netflix ks and if you apply the same multiple uh youtube in uh on its own energy as a span would be working, of which in five and six hundred dollars would be worth more than bank of amErica of the matter.

Sales force and the disposition of assets in a uh spend of assets in a conger's structure craigs more value for your point. why? Because ceos and controlling shareholders love to have a big fat fucking company, especially one of this power and a prosperity.

And they don't like a managing different ones. And ceos love a bigger company because their compensation is based on two things, the performance of the company and how big the company is. In addition, IT makes them sleepy at night when they can glamorize.

Because if youtube is in doing well and most likely their cloud or way mois doing well are right. And the fact of the matter is, is that investors don't need C O to diversity for I could go buy my own video search, uh, engine called youtube. I would like to be able to do that.

I like to be able to specifically would say, I like, I don't believe an autonomous driving ing, but I believe in video search. I want to invest in youtube but not when ma or I think that search is chAllenged by AI or I think it's gonna just fine and been over punished. I wanted to go to search, but I don't have in the cloud whatever, right.

Um unfortunately they don't do that. They can Gomez. They claim there's efficiencies and there maybe there may be so many efficiencies here between ordinating and CoOperating uh, that they in fact make an impossible for anyone else about the buy on the buy and the cell side in digital marketing, and they make the market anyways.

I just don't see this happening. I I wonder if there will be a break up. I hope there is IT would probably be something around their attack that probably may be have to spin the old double click or the ad stack or the ad model or the ad technology, if you will.

But the idea you're looking at this rationally from an investor standpoint, what would make the most sense? But here's the thing. These companies are run by individuals, and they love having sitting on the and throne of all of the seven realms, not just west ose.

So while what your say makes sense, it's just unlikely to happen. These organza are run by people that have different objectives. Then just knowing what's right for shareholders, a few will.

Uh, the biggest tax cut in the world right now would be if china, U. S. Made up. They have manufacturing, we have consumer demand, we have debt, they have cash. I mean, regards sakes, it's fred and fucked and ginger for the global economy, that would be the biggest tax cut. The second biggest tax cut would be if we took the big guys, amazon, alphabet, google, an airport and broke them up into seven or twelve companies, that would be the best way to auctions onate the marketplace.

They have such concentration of power in their specific categories that the rents they charge on consumers, whether it's what they charge you for your iphone or the ad fees on amazon, which has got from about twenty percent a total growth merchandise volume to like forty five percent all the rents needs to come down on businesses. Biggest corporate tax get in history wouldn't under trump IT would be under the f to see A D, O, J breaks in these companies up and he was at my rand will will see what happens to your professor. But call me, call me sceptical question number two.

Hi prof. j. Manan is nd from melbourne stripe. I love you work. And thank you for contributing to making out discourse less course and more informed. You've often spoken about the need to age gate social media.

The israel government has recently announced plans to impose a minimum edge of sixteen years to access social media platforms. The concept has broadly bye isan support. However, there are similar practical issues that are unfolding, namely how to verify that someone is indeed over the stain options discuss include biometric verification and uploading approved forms of I A. Given the well funded security and privacy concerns, this is in danger of discovering this otherwise worthwhile all policy initiative. Would love to hear thoughts, and thanks again for the edo .

ah thanks for the thought of question in the door from australia. So the most influential scholar in the world right now ah is my college JoNathan height. And everything we're talking about here funds being banned in schools, social media being banned, kids under the age of sixteen, his largely manual unction jo ona's landmark book, the anxious generation.

So effectively, australia is planning to make social media platforms take action to prevent online harms, including buying predatory behavior and harmful content. Push by algorithms. They are calling at the digital duty of care platforms, including tiktok, against gram acts will need to actively protect users by regularly reviewing and addressing safety rests.

The plan will ban kids under sixteen from the social media platforms. Some critics argue that banning Younger users of these platforms could reduce the pressure on these platforms to improve safety features. That's that can ridiculous.

If no Young people aren't on there, that will decrease the likelihood theyll put in safety restrictions for Young. That makes no sense. Little of these people, I have no shame.

And my favorite is I would square free speech. And my thirteen needs three speech more than he needs protection from this bulls shit that makes me secure on a self harm. Yeah, okay, free speech for thirteen years.

That's our top priority. The legislation covers a wide range of harms, including mental health impacts on Young people, harm for practices and illegal activities. There will be no exemptions for children with coronal consent or who already have account.

What's the plan now? Australia is currently uh, trading and age fiction system includes methods, uh including biometrics s and government identification to help block children from accessing the social media platform. So h these companies, right, social media companies are coming to the social offering, make eleven billion dollars near advertising to people under the age of eighteen.

And when you take a multiple of whatever is ten to fifteen times revenues you're talking about, essentially some were betwen one hundred billion and a quarter of a cryan dollars by their ability to continue to advertise the Young people despite the arms. So they're going to do everything they can. They're onna not to pretend to give a time fuck about the commonwealth and children.

They don't, by the way, a majority of their executive do not allow their kids on smart phones or on social media. why? Because they know how man dacier this should, as this is about money and nothing else.

You really think they care about your kids, free speech, or ensuring that the L G B T Q community has a chance to reach out and find other kids? Yeah, this is not a perfect legislation. But on the hall, on the hall, stop signs have a downside, but they still make a lot of sense.

I don't doubt that they're probably three or four. I don't know our instances of people that had a terrible reaction to the vaccines, I don't doubt. And guess what, it's still hugely worth IT.

This is just so unnatural that we've let this go on for so long. So kudos to australia for trying to implement and do something about that. The legislation will be introduced the australian parliament this year and if IT proved, will take effect months later.

And again, for those of you who are thinking about academia or don't think a book can change the world, they are banning phones and countries because we will call the anxious generation. By professor johnston and I also a lovely guy is a lovely guy. Anyway, thanks to the question, we have one creep break.

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Welcome back a question number over three.

I cat, my name is monster team. I'm a huge fan in an Y, U, M. I. I ended a new job at a new school teaching journalism in the machine.

I feel really comfortable talking to large groups of people, but my class would be a small group of less than tone. How do I change my mass communication styles to accommodate the class size? Are there any secrets to teaching and greeting AI projects? Any advice? welcome.

I'll take this reverse order. And and thanks to the question, money and congratulations. I can't fell into teaching actually that much.

I know I want basically is a teacher at the university. You just have to be sort of the best student in the class. Some people are literally the expert in the domain. Most of us aren't. We just do the reading and try try to be very well prepared in class.

But okay, so how do great A I projects should I don't know what I can tell you is that I now have an eye and can spot should written by A I, and i'll circled and say A I question mark and when I say to my kids, my kids are, the average is twenty eight. These are adults working at google and sales force and bridge water. I look, if you want to turn something and and you want to be A I and not to any work have added.

But the whole point here is to learn some skills in generally speaking, i'm it's since i've can actually now pick out A I written material or at least I think I can. What I can help you with is alright if you'd blessed to have. I used to have when I first started, my class is only twenty or thirty kids.

Word got out that that IT was a good class. And now my classes, or three hundred, what you have, the energy of twenty kids, quite Frankly, is a psychoactive method. And student engagement.

And that is you can get to know them and what you're meant to do. I think the best classes are I taught three hour sessions was an hour of actual content electron and then two hours of critical thinking in debate. And that, as I would say, OK should nike take money out of advertising and open stores and vertical distribution.

And I would say, Allen, please make an argument for those as a relates to um trends in motor day branding about vertical distribution. And then you get nervous and fumble erself and try make try to make, you know, a comment. And then I say, OK je disagree with her and show, you know why he has this wrong and then he could even make something less cogent.

But they've kind of the class we have. Time would be a biscuit. And I start calling on people and asking them to argue. But a soft tly debate really come out, come up with things, push back on them. I'm not afraid to say, look, uh, that was really intelligent.

What you said, what you need to be able to do was stayed in the third of the time because that only three times is powerful. M, i'm going to come back to at thirty seconds. My point is you can really and also get in their face, really get in their heads and make a super engaged and create a little bit attention that, you know they know you're going to call on them three or four times.

And that creates a level of intensity and excitement. But though it's not for everyone, some kids don't like that. I want to have how to kid, come to my accept at several times, say I get very nervous.

I really didn't call on me and I said i'm going to continue to call on you, but you can say, you can say I need a minute or I don't know and i'll come back to you and you're in a safe place but you have to get passes. It's can be very hard to be successful economically without the ability to speak in front of the at least a small group of people. So when he was to played your strength, a small group of people, really active conversation with twenty kids, if everyone hasn't spoken at least once during the class, you have failed.

You're not as much as teachers. You are a mystery, a really robust conversation. But congratulations on your new role.

I think it's very rewarding. Thanks to the question. That's often the episode. If you'd like to admit a question, please make a voice recording to officers approach to media com. Again, that's office hours of prompting me a dot com.

This episode was produced by Jennifer sanchez and Caroline chagrin. Je birth is our technical directly. Thank you for listening to the property pop the box media k, we will catch you on saturday for no merges by, and please follow our property markets. Pod, whatever you get your pods from new episodes every monday and thursday.