The House unveiled five bills aimed at curbing Big Tech companies, including the Ending Platform Monopolies Act, that requires “structural separation of Amazon” and makes it illegal for an online platform to own a business that uses said platform for “the sale or provision of products or services,” that “sells services as a condition for access to the platform” or that “owns businesses that create conflicts of interest.” Another bill would ban platforms from giving advantage its own products and services over those of a rival. Continue reading Lawmakers Introduce Bills to Address Dominance of Big Tech

Amazon founder Jeff Bezos will officially leave his position as chief executive on July 5, and Amazon Web Services chief executive Andy Jassy will take over the Amazon CEO position. The departure of Bezos was originally announced in a February earnings report but a specific date was not revealed. Bezos said July 5 is “sentimental” because it was the date Amazon was incorporated in 1994. Bezos will become executive chair, focusing his attention on “new products and early initiatives.” He said he expects Jassy to be “an outstanding leader.” Continue reading Amazon Founder Jeff Bezos Will Step Down as CEO on July 5

Attorney general for the District of Columbia Karl Racine filed an antitrust lawsuit against Amazon, claiming the tech giant abuses its monopoly power by artificially raising product prices. The suit adds that Amazon blocks vendors from charging lower prices for the same products elsewhere, which results in higher prices for these products on Amazon and other marketplaces. This marks the first time a U.S. government entity has filed a suit against Amazon. Racine stated that, “Amazon has used its dominant position in the online retail market to win at all costs.”

Continue reading DC Files Lawsuit Against Amazon Alleging Antitrust Violations

Amazon announced this morning that it will purchase MGM Studios for $8.45 billion, signaling the tech giant’s serious intent to expand its entertainment ambitions by beefing up its Prime Video content library to better compete with Netflix, Hulu and the growing collection of streaming video services. The deal marks the second largest acquisition for Amazon; the company paid $13.7 billion for Whole Foods in 2017. Amazon plans to leverage MGM’s significant catalog of 4,000 movies and 17,000 television shows to help strengthen its film and TV unit Amazon Studios. Continue reading Amazon to Acquire MGM in Deal Valued at Nearly $8.5 Billion

“Fortnite” creator Epic Games sued Apple over its 30 percent commission on all App Store transactions. That case is now in court, and Apple chief executive Tim Cook took the stand to defend his company against accusations of monopolistic behavior. On the sidelines are other companies with the same grievance and the European Union, which also charged Apple with violating antitrust rules with the App Store. In an hour of testimony, Cook stated that commissions from app developers help the company create better App Store security. Continue reading Apple Chief Exec Tim Cook Testifies in Trial with Epic Games

A European Union court struck down a 2017 European Commission decision ordering Amazon to pay $300 million (250 million Euros) in taxes, saying that regulators failed to prove the company had an illegal advantage and that its analysis was “incorrect in several respects.” The Commission’s executive vice president Margrethe Vestager has spearheaded a campaign against several Big Tech companies, including Apple and Google. It was her second recent defeat after the General Court overturned a 2016 decision against Apple. Continue reading Amazon Wins Appeal Against European Commission Decision

The lawsuit between Apple and Epic Games has come to trial and is expected to last about three weeks. Epic sued the Big Tech company over its App Store rule that developers must use its payment system, for which it charges a 30 percent fee. Epic Games has also sued tech giant Google for the same issue on its Play Store. The European Union has similarly charged Apple with violating antitrust laws. At the trial, Epic’s lawyers will argue a legal theory that Apple is using its dominant position to stifle competition. Continue reading Apple, Epic Games Trial to Determine Anticompetition Charge

Microsoft just slashed the revenue cut it takes from PC games on Windows from 30 percent to 12 percent, effective August 1, in a move to lure more game developers to its platform. Xbox Game Studios head Matt Booty said that, “a clear, no-strings-attached revenue share means developers can bring more games to more players and find greater commercial success from doing so.” The change will not affect Xbox console games. Microsoft’s new revenue split is the same that Epic Games offers to PC game developers. Continue reading Microsoft Lowers Share with Game Developers to 12 Percent

In the wake of an initial complaint from Spotify, the European Commission has levied antitrust charges against Apple for breaking EU competition rules regarding its App Store policies. More specifically, the EU focused on two rules, one requiring developers to use its in-app purchase system, for which it charges a 30 percent cut, and a second not allowing developers to let users know about other purchasing options. The Commission found that the rules “distort competition” and result in higher prices for consumers. Continue reading European Commission Targets Apple with Antitrust Charges

Facebook’s advertising revenue rose 46 percent in the last quarter compared year-over-year, to $25.44 billion, and its profit almost doubled to $9.5 billion or $3.30 per share. That growth may not continue now that Apple is allowing users to opt out of being tracked by apps. Facebook chief operating officer Sheryl Sandberg said the company has been preparing for Apple’s new rule. Facebook expects revenue to slow in Q3 and Q4, even as its shares rose 6 percent in after-hours trading, a gain of 16 percent over the past three months. Continue reading Facebook Advertising Revenue Soared in the Latest Quarter

The pandemic-driven stay-at-home year supercharged Alphabet’s digital ad sales in Q1 to $55.31 billion, 34 percent up from a year earlier. Advertising sales via signature products such as Search, Google Maps and Gmail rose 30 percent to $31.88 billion as brands transitioned ad spending from print, TV and in-store promotions to Google services. Profit also more than doubled and per-share earnings were higher than expected. YouTube earned $6 billion, a 49 percent increase from last year, and total profit soared 162 percent from the previous year to almost $18 billion. Continue reading Google’s Ad Sales Shatter Records as Brands Shift to Digital

Google has inked an eight-year deal with Spanish-language broadcaster Univision Communications that could exceed $1 billion. Univision chief executive Wade Davis said Google’s offer of benefits on its YouTube video platform and advertising and search services helped close the deal. Microsoft and Amazon have also bundled products in cloud computing deals and lawmakers have expressed concern over the tactic. Google currently faces antitrust suits filed by the Justice Department and several states. Continue reading Univision Selects Google for Bundled Cloud Computing Deal

Since China fined Alibaba $2.8 billion for violating antimonopoly regulations, 34 Chinese companies have publicly pledged to comply with those laws. The State Administration for Market Regulation (SAMR), the country’s antitrust watchdog, published 12 statements, including those from TikTok owner ByteDance, Baidu search engine, and e-commerce platforms JD.com and Pinduoduo. The companies all vowed to build a fair and competitive market in specific areas. SAMR said it planned to publish more such avowals. Continue reading China Targets 34 Internet Platforms for Antitrust Compliance

The Chinese State Administration for Market Regulation (SAMR) fined e-commerce giant Alibaba $2.8 billion for antitrust violations, a rebuke to its founder, high-profile tycoon Jack Ma. Investigation into whether Alibaba prevented sellers from offering their goods on other e-commerce platforms began in December. The official Communist Party newspaper called monopolies “the great enemy of the market economy” and said regulation was “a kind of love and care.” In 2015, China fined Qualcomm $975 million, also for antitrust violations. Continue reading China Signals Tighter Big Tech Regulation with Alibaba Fine

Trade groups representing small merchants in hardware, office supplies, books and groceries are organizing in 12 cities to form Small Business Rising, a coalition for stronger antitrust laws and enforcement of existing ones. They hope new measures will force Amazon to spin off its own business lines that compete with them. The House Antitrust Subcommittee is already considering such legislation but hasn’t yet introduced a bill. Amazon called the efforts “misguided interventions in the free market.” Continue reading Coalition of Small Businesses Aims to Weaken Amazon’s Grip