How tech companies be worried about DoJ’s antitrust review

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How tech companies be worried about DoJ's antitrust review

But the investigation has been confirmed in a little detail, explaining only that the review “will take into account the widespread worries expressed by consumers, businesses and entrepreneurs about research, social networking and some online retail services.”

Who can talk about it? What are the concerns that people can express? Reading between lines is not difficult: they should be seen in the coming months.

Alphabet

Google’s parent company dominates many areas: online advertising, known by its name and Facebook as “binary monopoly” and searches the Internet and YouTube.

It has too much market power in cartography (Google Maps), webmail services (Gmail) and mobile operating system (Android).

Google has a strong defense of the search: Contrary to the discussion on many other companies, “the competition is just a click,” as the Google Larry Page founder had in 2012 when the company was concerned about the antitrust.

Changing the operating system is a daunting task. Switching to social networks is almost impossible. But to prevent you from becoming a Google researcher, you have to type ddg.gg in your address bar, and your work will be completed.

Jim Kellock, chairman of the Open Rights Group, believes that the advertising market will eventually be a tough fight, which Google will win.

“These companies make profits from advertising revenue, which is a big problem, because money is not needed for those who produce the content.

“Obviously this is the result of market dominance: Google, Facebook and IAB Partners are all eating this revenue, this is a kind of harassment for those who have general knowledge.”

Veerangna

Amazon is clearly a provider of “retail services” investigated by the Ministry of Justice. US Treasury Secretary Steve Menucin said on Wednesday that Amazon had “destroyed” American retail industry and its success was “limited competition”.

Amazon says that its market power is far from absolute: it consume almost half of all the dollars spent on the Internet, and only 5% of US retail Walmart’s revenues were twice the Amazon in 2018.

The strategies that criticized Amazon, from internal brands until payment promotion, are ideal in the retail sector.

But the question is where the line is drawn.

For example, Amazon’s dominance of e-book industry is almost complete; Its strength in retail printing is not very far, then Amazon is web services, which are still known hard outside the IT industry, which provide a technical infrastructure for a large portion of the web. Compete with Google and Microsoft

Apple

The United States is the strongest market for Apple. But even there, it is difficult to say that it monopolizes its main product: the mobile phone operating system is placed second, the desktop operating system is ranked second, the music broadcasting service is second place.

It leads the market in smart watches and tablets, but the success of the iPad and Apple Watch is only proportional to the failures of their rivals.

Instead, the question in front of the Justice Department is whether the power of Apple is being built within those markets. For example, the company can be only half a part of the smartphone market, but it’s definitely 100% market for the iOS App Store.

When there is a price of $ 300 million per day in the market, Apple proudly notes that the company still has very much power – as Sputwe complained, loudly, from the European Commission

Facebook

Facebook has a monopoly, which is great: Thanks to Facebook, Messenger, Instagram and Whatsapp, the company has the largest social network in the United States.

Mark Zuckerberg argued that there was still competition in the wider sector where the company was running, telling American lawmakers last year that “American citizens … uses eight different social networking applications and applications.”

But if half of these apps have been created by Facebook, and the other half include email, text messaging and commercial communication services, it is difficult to take it as a reason to easily go into the company.

For Zuckerberg, Facebook has the most compelling reason for working: Their two biggest acquisitions, Instagram and What’sapp, are still relatively different, and their solutions will be technically out of reach.

Ben Thompson, a technical analyst, says that the acquisition of Instagram is “the biggest regulatory failure of the last decade,” partially due to the loss of the ability to compete on the same level of snapchat

the rest

Kellock argues that if the majority of the companies leave their inquiries, then the justice ministry will be small.

In the entire technology sector, he says: “You have a series of small monopolistic practices.” In the video stream from Netflix, Uber has auto sharing and enterprise presentation.

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