With its release of Chrome, Google is distributing a browser that will give the company direct access to the user, and more control over the data it gets. If Chrome catches on, the result would be a boon for Google's cash cow -- advertising.
Chrome is a direct assault on Microsoft's dominant market position in the browser space, and it shares some of the privacy features of IE 8. But the bigger picture is control in the cloud of the direct and indirect details of internet life and how those will distill into the perfection of online pitches.
Google interacts with the world through people's browsers. What makes more sense than for Google to take control of the browser? If successful they can spend less time trying to make their services work across all browser platforms and more time adding functionality to those services.
And that's the least of the benefits for Google. I think this gives them the ability to prevent the other browsers from implementing features that make limit what Google tracks. We'll need to wait and see how this develops, but opinions are beginning to harden. Just, err, google for Chrome for more...
Some links to opinions about Chrome:-
Chrome versus the world
Google restores Chrome's shine
Google seeks route around Microsoft with Chrome
Chrome Vs. IE 8
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