This story nicely describes a reality of the situation for companies like Google, but it also ignores a basic problem. You seem to assume a functioning government, one capable of producing regulation that is enlightened and apolitical. I don't think we've had such a government in the US for a while. The EU is doing somewhat better, and maybe the next four years will be better for the US.

In the absence of a functioning government, what we get is unregulated competition. Under such conditions monopolistic behaviors should not surprise anyone. I almost think we should be thanking these companies, for showing some restraint. It is within their power to make things much worse.