(Bloomberg) — Google is confronting a growing backlash against its market power in international markets, compounding the company’s regulatory challenges as it girds for an historic antitrust suit from the U.S. Justice Dept.
In just a matter of weeks, the search giant’s business practices have drawn scrutiny in Australia, South Korea and India. The European Union’s antitrust chief has already threatened to break up Google if it won’t change its ways, while the company pulled out of China a decade ago because of government censorship.
India is a prime example of how Google’s troubles could undercut future growth. More than 200 startup founders have banded together and opened discussions with the government to stop the Alphabet Inc. unit from imposing a 30% fee on smartphone app purchases, its standard levy around the world. While Google delayed implementation for six months after an outcry last week, the country’s tech
Coming in at 451 pages, the U.S. House Judiciary Committee antitrust subcommittee’s report this week on competition in digital markets is a comprehensive summary of the ways in which Apple, Facebook, Google and Amazon capitalize on and allegedly abuse their market power to benefit themselves.
Amazon is mentioned by name 1,866 times in the report, almost twice as many times as Facebook, and second only to Google at 1,964 mentions.
The report dedicates an 83-page section to the Seattle-based e-commerce giant, informed by internal company emails, extensive market research, interviews with third-party retailers, submissions from industry groups, and testimony including the widely followed hearing this summer with Amazon CEO Jeff Bezos and others.
PREVIOUSLY: Antitrust report says Amazon has ‘monopoly power’ over sellers, company slams ‘fringe’ findings
Welcome back to This Week in Apps, the TechCrunch series that recaps the latest OS news, the applications they support and the money that flows through it all.
The app industry is as hot as ever, with a record 204 billion downloads and $120 billion in consumer spending in 2019. People are now spending three hours and 40 minutes per day using apps, rivaling TV. Apps aren’t just a way to pass idle hours — they’re a big business. In 2019, mobile-first companies had a combined $544 billion valuation, 6.5x higher than those without a mobile focus.
In this series, we help you keep up with the latest news from the world of apps, delivered on a weekly basis.
Apple declared monopoly by U.S. House Judiciary subcommittee on antitrust
Apple was one of the four big tech companies the House Judiciary subcommittee on antitrust declared as having enjoyed
A long-awaited report from a U.S. House antitrust subcommittee landed this week, and it slammed Amazon, Facebook, Google and Apple for their alleged monopolistic practices in the online marketplaces they operate. Amazon responded with a scathing blog post that said the report featured “flawed thinking.”
Lots of tech people are working from home due to the pandemic, and Microsoft CEO Satya Nadella has some tips on how to do it and maintain your health and well-being. Schedule some short meetings, he says, and don’t forget your transition times.
A new story from the Medium business publication Marker paints an extraordinary portrait of the life of one of the richest women in the world, MacKenzie Scott, which is all the more
WASHINGTON (Reuters) – U.S. Representative David Cicilline, the chairman of the House Judiciary Committee’s antitrust subcommittee, said on Wednesday he would be “comfortable with unwinding” Facebook Inc’s acquisition of Instagram.
The antitrust subcommittee on Tuesday released a report on Big Tech’s abuses of market power but stopped short of naming specific companies or acquisitions that must be broken up.
Cicilline, a Democrat from Rhode Island, told Reuters in an interview that Facebook should not have been allowed to buy Instagram, a deal that the Federal Trade Commission approved in 2012.
“I would be comfortable with unwinding that. I think that’s the right answer,” he said.
Facebook did not immediately respond to a request for comment. It has said previously that Instagram was insignificant at the time it was purchased and that Facebook built it into the success it has become.
Any effort to unwind the deal would entail the government
Big Tech stocks barely flinched one day after members of Congress recommended parts of their underlying companies be broken up, but investors should be ready to buy if the stocks dip in the future, CNBC’s Jim Cramer said Wednesday.
“The time these Big Tech stocks get hit by some bad headlines from the House Judiciary Committee is the time you have to buy them,” the “Mad Money” host said. “Regardless of who wins the White House next month, they’re not gonna roll back 40 years of antitrust.”
The comments come on the heels of a Democratic congressional staff report out Tuesday that called for updates to the nation’s antitrust laws and to shake up operations of the largest U.S. technology corporations. The report charges Apple, Amazon, Facebook and Alphabet subsidiary Google with having monopoly power.
Facebook was the only one of the three stocks to fall in Wednesday’s session, slipping
Twenty years after Microsoft waged its own antitrust battle with the U.S. government, former CEO Steve Ballmer is betting that Congress won’t break up Big Tech this time around.
In an interview with CNBC on Wednesday (below), Ballmer was reacting to a U.S. House antitrust subcommittee report released this week that found challenges presented by the dominance and business practices of Amazon, Apple, Facebook and Google.
RELATED: House antitrust probe says Amazon has ‘monopoly power’ over sellers, company slams ‘fringe’ findings
“I’ll bet money that they will not be broken up,” Ballmer told CNBC.
The 450-page report from the subcommittee’s Democratic leaders concludes a 16-month investigation into the four companies as the operators of major online markets. It finds that the market power of the tech giants “has diminished consumer choice, eroded innovation and entrepreneurship in the U.S. economy, weakened the vibrancy
The major tech platforms push back against the House antitrust report, Google Assistant gets a “guest” mode and we interview a freshly minted Nobel laureate. This is your Daily Crunch for October 7, 2020.
The big story: Big tech responds to antitrust report
The House Judiciary Committee released its tech antitrust report late yesterday, concluding that the big tech platforms should face additional regulation. Recommendations include creating new separations to prevent dominant platforms from operating in adjacent lines of business, new requirements for interoperability and data portability and increased restrictions on mergers and acquisitions.
For now, these are just recommendations — and they weren’t endorsed by the committee’s Republican minority. But they have prompted forceful responses from four of the companies targeted by the report: Amazon, Apple, Facebook and Google.
Amazon, for example, dismissed the committee’s views as “fringe notions” and “regulatory spitballing,” while Apple said it “vehemently” disagrees with
Amazon uses third-party seller data to copy the site’s most popular products, an antitrust report by the House Judiciary Committee alleged on Wednesday.
Former Amazon sellers told an antitrust subcommittee the company released new products almost identical to their own and “killed” their sales.
Amazon has denied accusations of this behavior in the past.
“We have a policy against using seller-specific data to aid our private-label business,” Amazon CEO Jeff Bezos said in July.
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The House Judiciary antitrust subcommittee said it has uncovered evidence that Amazon uses detailed data from third-party sellers to copy popular products and push some sellers out of business — something the tech giant has consistently denied.
The subcommittee said it had heard “repeated” concerns from both former employees and third-party sellers that Amazon uses seller data to either copy products or source the product directly from the manufacturer.
NEW DELHI (Reuters) – Alphabet Inc’s GOOGL.O Google is facing a new antitrust case in India in which the U.S. tech giant is alleged to have abused its Android operating system’s position in the smart television market, a source and two lawyers involved in the case told Reuters.
The case is Google’s fourth major antitrust challenge in India, one of its key markets where it is currently facing public criticism from local startups for enforcing certain policies and company charges they contend hurt their growth.
It also comes as Google faces new antitrust challenges in the United States, and a potential antitrust probe in China that is set to look into how it allegedly uses its dominance of its Android mobile