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I don't think that domain registration would generate enough revenue for Google to care about it as a core business unit, especially because part of Google Domains' pitch was that they had all these obscure domains that were cheaper. My inference is that Google cared about domains because they were complementary to another, core business unit. The obvious one to me is Google Workspace: You come to Google, get your domain, set up your business email, and you're well on your way to having an online business presence. The big missing piece is a website.