House finds Google, Apple wield ‘monopoly power’ that demands changes

Must read

How to disable and delete Samsung Pay from your Galaxy phone

When it comes to paying conveniently, Samsung Pay makes using your phone as a bank card an easy process; however, there may come...

How to Watch India vs Australia Live Stream

India's tour of Australia began on Friday with the first of three one-day internationals in Sydney — the city will also host the...

AMD Radeon RX 6800 XT GPU Price in India Revealed, Will Cost Rs. 64,990 Plus GST

AMD Radeon RX 6800 XT graphics card will cost Rs. 64,990 (SEP) in India before GST, the company shared through a post on...
Bhawani Singh
I am a blogger who believes in delivering latest tech news from around the world to my viewers.

google logo G at ces 20201

  • A House Judiciary committee has found that Google, Apple, Amazon, and Facebook all have “monopoly power.”
  • The committee recommends “structural separations” and preventing companies from preferring their own services.
  • Whether or not these changes take place is far from certain.

The Big Tech hearing in Congress might not have produced much in the way of meaningful answers, but the investigation linked to that hearing might produce significant results. The House Judiciary subcommittee on antitrust has published the results of a 16-month investigation (via CNBC) and found that Google, Apple, Amazon, and Facebook all have “monopoly power” that warrants major changes.

Google allegedly wields a monopoly in search that it enforces through “anticompetitive tactics,” including through Android. The company reportedly abused its power to require phone makers  to pre-install its apps and set them as defaults, cementing its leads in search and some app categories. It also exerts dominance through Chrome, Google Maps, and Google Cloud, according to the subcommittee, and used programs like Android Lockbox to track competition.

Related: Android is becoming a monopoly and that could be a problem

Apple, meanwhile, allegedly claimed a monopoly in the app market on iOS devices where it discouraged rival apps and charged “supra-competitive” prices. Amazon’s purported monopoly came from acquiring companies, undermining third-party sellers, and using Alexa to pitch products while collecting user data. The committee accused Facebook of creating a monopoly by acquiring companies like Instagram and WhatsApp expressly to stifle competition, all the while exploiting the network effect to make it difficult to leave.

The House subcommittee recommended serious antitrust action as a result. It called for “structural separations” (not necessarily breaking up companies) and barring dominant platform operators from entering “adjacent” businesses. Politicians also wanted to prevent monopolists from preferring their services over others, to make services compatible with the competition, and to enable data transfers that would help people switch.

Whether or not any of these potential reforms happen is another matter.

Officials asked to change the strategies at antitrust enforcers. The FTC and Justice Department’s antitrust team would have to presume mergers are anticompetitive by default, asking the companies to prove why they wouldn’t hurt competition. The FTC would have to regularly collect data on the concentration of power, too. The government would even bar forced arbitration and limits on class action lawsuits.

Whether or not any of these potential reforms happen is another matter. Republicans have already opposed some of the proposed measures from the Democrat-led investigation, including separations. The House would have to get both the Senate and the President onboard to pass any meaningful legislation. This doesn’t preclude some form of crackdown, however, and the November 3 election could shift the political landscape in favor of strict action.

Google has historically rejected claims of a monopoly and opposed efforts to curb its Android and search policies. If the investigators had their way, it might have to do more to accommodate third-party apps and stores, including those preloaded on non-Pixel phones. That might be good for competition, although that’s not guaranteed — the Play Store and Google apps like Gmail are still considered must-haves for phones in the US, even though there are plenty of alternatives.

Source link

More articles

Leave a Reply

Subscribe to our newsletter

To be updated with all the latest news, offers and special announcements.

- Advertisement -

Latest article

SpaceX’s Launch Of Sentinel-6 Is A First Step Toward Leveling Up Climate Studies

Saturday's SpaceX launch may be a small step for a company that is making increasingly regular trips into orbit, but the...

How green and profitable are e-scooters?

Wayne Ting, chief executive of e-scooter firm Lime, says there's room for improvement. Source link

How to Change the Theme and Accent Color of Instagram DMs

Khamosh PathakFacebook has merged Instagram DMs with Facebook Messenger. Once you opt-in, you can message your Facebook friends right from Instagram. More importantly,...

This Nintendo Switch Cyber Monday deal gives you more storage and 12 months online

The Nintendo Switch is a fantastic system, but with only 32GB of internal storage available, space can run out fast. You also need...

Sage Business Cloud Accounting review

This is a review of Sage Business Cloud Accounting for North America. The product, and its features may vary depending on the country...
- Advertisement -