Factbox: How Big Tech companies gain and maintain dominance

(Reuters) – Democrats from a U.S. House of Representatives subcommittee issued a report on Tuesday detailing tactics it said four of the biggest technology companies used to gain dominant positioning in online search, advertising, social networking shopping and other businesses.

Facebook logos are seen on a mobile phone in this picture illustration taken December 2, 2019. REUTERS/Johanna Geron/Illustration/Files

Here are notable findings.

AMAZON

The issue: Amazon.com Inc AMZN.O sells its own products as well as goods from independent merchants on a single platform. The Congressional report alleged that Amazon has “monopoly power” over many of these merchants, which “do not have a viable alternative to Amazon for reaching online consumers.” The result, the report alleged, is a “conflict of interest” in which Amazon has an incentive to use competing merchants’ data and can advantage its own goods and services.

The fix: The report recommends Congress consider removing the conflict by

Read More

China is winning the war for global tech dominance

When the United Kingdom announced in July that it no longer would allow the Chinese technology firm Huawei to be part of its 5G telecommunications network, it was considered to be a success for the Trump administration’s lobbying of its closest ally. Other countries such as Australia and Japan also have effectively banned the company, echoing Washington’s fears of a potential national security threat.

Unfortunately for those hawkish on Huawei, the vast majority of the world remains open to using the company’s technology. Huawei has a presence in more than 170 countries, including dozens in Europe, and even Canada has yet to be persuaded to block the Chinese Communist Party-linked company.

This is a reflection of the reality that America finds itself in today — namely, that China appears to be winning the war to build the world’s technology infrastructure.

China’s push to dominate technology is being coordinated through a

Read More

Indian Startups Band Up Against Google Dominance, Want To Build National Alternative To Play Store

KEY POINTS

  • Google Play will collect a 30% commission on in-app purchases from 2021
  • Indian startup founders called these charges “unfeasible”
  • Google’s Android holds a 95.8% market share in India

More than 150 top Indian startups and businesses, some of them big names, have banded together to challenge Google’s monopoly over the Android app ecosystem in India  and build an app store that the country can call its own, TechCrunch reported.

The move by Indian businesses to to build a national altenative to Google Play was prompted by Google’s recent annoucement to force app developers on its store to use its payments system, which takes a 30% cut on transactions including in-app purchases. Reports said founders of leading startups like Paytm, a payments app simiar to Google Pay and is India’s most valuable startup; MakeMyTrip and PolicyBazaar discussed Google’s policy and the concerns on dependence on Google on a call.

Read More

Justice Department case against Google is said to focus on search dominance

WASHINGTON — The Department of Justice’s (DOJ) impending lawsuit against Google has narrowed to focus on the company’s power over internet search, a decision that could set off a cascade of separate lawsuits from states in ensuing weeks over the Silicon Valley giant’s dominance in other business segments.

In presentations to state attorneys general starting on Wednesday, the DOJ is expected to outline its legal case centered on how Google uses its dominant search engine to harm rivals and consumers, said four people with knowledge of the plan, who spoke on the condition of anonymity because the details were confidential. Meeting with the state attorneys general is one of the final steps before the DOJ files its suit against the company, they said.

The DOJ’s action against Google is set to be narrower than what had been envisioned by some states and several career lawyers in the department. The DOJ

Read More

DOJ’s Google antitrust case focused on search dominance: report

  • The Department of Justice is narrowing the focus of its antitrust case against Google to the company’s dominance of internet searches, The New York Times reported Tuesday. 
  • The decision to focus only on search reflected political disagreements, with some attorney generals now considering additional lawsuits focused on anticompetitive behavior by Google, according to the report.
  • Attorney General William Barr has pushed to sue Google before the election, overruling DOJ attorneys who said they needed more time to build their case, The New York Times previously reported.
  • Tensions around the DOJ’s case come as Trump reportedly prepares to urge Republican attorneys general to investigate his allegations that social media companies are biased against conservatives.
  • Visit Business Insider’s homepage for more stories.

The US Department of Justice is dialing back the antitrust lawsuit it’s preparing to file against Google, and will focus primarily on anticompetitive behavior related to internet searches, the The

Read More