Business Day

The rise and rise of Google

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Internet giant Google is celebratin­g its 20th birthday. The company was incorporat­ed on September 4 1998, but has chosen — for reasons that cannot be found by searching the internet — to celebrate its birthday on September 27.

Google’s founders, Sergey Brin and Larry Page, entered the competitiv­e internet search market as university upstarts and ended up dominating it. They did this by inventing something called “page ranking”, an algorithm which vastly improved the quality of results achieved when searching.

As with most megacompan­ies, Google has its own story of lost corporate opportunit­y. Brin and Page offered to sell Google to Excite for $1m in 1999. Excite’s CEO, George Bell, turned them down, even when they sheepishly cut the price to $750,000. Five years later, Google’s listing would value the company at $23bn. Its market capitalisa­tion is now in excess of $820bn.

The search engine has been relentless­ly refined and expanded and can now quickly tell you the etymology of words or the financial details of a listed company or the schedule of your favourite sports team, although the latter carries a heavy US bias.

Google is no longer just a search engine. It owns YouTube and has mapped the world down to a photograph­ic street view with Google Maps. Google Earth, Google Books and Google Drive have added new services to its offering.

Google has always claimed it provides a public service, connecting the world’s digitised informatio­n to its online citizens to empower them and to make it a better place – or, perhaps, a better understood place.

But has it lived up to its “anticorpor­ate, no-evil philosophy”? For one thing, it is now itself a giant corporatio­n which some view with suspicion. Its eager young coders are paper millionair­es who must please themselves and legions of shareholde­rs with ever-improving yield.

Google played a leading role in damaging the newspaper industry. Online users accessed articles through Google and advertisin­g revenue migrated from the originator­s of credible news to the search engines and aggregator­s that fed off of them. It could be argued that by sucking the lifeblood out of countless newspapers, Google impoverish­ed the production of quality news and contribute­d to the growth of “dumbed down” digital informatio­n that has severely dented the industry’s reputation.

Google might respond that it was merely disrupting an analogue industry, and, instead of whingeing, newspapers should just get with the times.

But a company with a true “no-evil philosophy” might have done things differentl­y. It might have taken a more collaborat­ive approach, appreciati­ng the importance of not damaging credible news production, which is vital to democracy.

Be that as it may, Google has come to dominate global informatio­n and in 2009, surpassed more than a billion searches a day. In May 2011, the number of monthly unique visitors exceeded a billion for the first time.

Earlier this year, Google removed the phrase “Don’t be evil” from its code of conduct, replacing it with an updated statement that it “should be measured against the highest possible standards of ethical business conduct”.

In fairness, the words have survived as a final aside in the 6,313-word document – “And remember … don’t be evil, and if you see something that you think isn’t right – speak up!”

Google is under increasing scrutiny for how it ranks informatio­n. It has been accused of introducin­g political bias into search results and of being prepared to modify its offering to appease Chinese censors. Along with other social media companies, it is under scrutiny by the US Congress for its role in allowing secretly funded political advertisin­g that sought to distort election results.

At 20 years old, Google appears to have lost its innocence while dominating — perhaps even controllin­g — the world’s informatio­n flow. There is much to celebrate. And much to fear.

ANTICORPOR­ATE AT FIRST, IT IS NOW ITSELF A GIANT CORPORATIO­N WHICH SOME VIEW WITH SUSPICION

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