Perhaps the idea can be refined.
If Google were to partner with Apple, Microsoft, and Amazon and buy up the whole shebang, it could be reformatted into something more useful for everyone--say, some kind of not-for-profit venture (and hence not interested in competition, meaning that the smaller labels wouldn't be squashed) that focused on distributing music to people and money to the artists, and promoting the work of various artists of merit.
You know, like how the RIAA was originally supposed to be.
Providing standard, known licensing terms to everybody as part of the setup, so everyone could compete on the same ground, would probably do more to help the music industry than anything else.
The reason I suggest a 'partnership' of this sort is to prevent any monopolistic tendencies--regardless of the intent to not be evil, owning the vast majority of the music industry does more or less amount to a monopoly, and the SEC won't like that.