The European Union’s antitrust unit has broadened its focus of Big Tech companies to include voice assistants such as Siri and Alexa and the growing number of connected Internet of Things (IoT) devices. The EU’s competition commissioner Margrethe Vestager noted the threat of a big company pushing the market until “competition turns into monopoly.” With regard to IoT, she pinpointed voice assistants as the “center of it all,” but included any digital device that records consumer data from Apple Watch to an Internet-connected refrigerator. Continue reading EU’s Antitrust Probe Expands to Include the Internet of Things

The European Union overturned a 2016 decision that ordered Apple to make good on $14.9 billion in unpaid taxes to Ireland. Apple selecting Ireland as its European base to avoid taxation was the genesis that eventually led to the decision. The European Commission’s top antitrust regulator Margrethe Vestager accused the arrangement of being an illegal subsidy not available to Apple’s rivals and demanded that Ireland recover 10 years of back taxes. Amazon and Google have pending court appeals to overturn similar EU decisions. Continue reading European Union Court Overturns 2016 Decision Against Apple

The European Union increased its efforts to regulate major U.S. technology companies, including Amazon, Apple and Google, with a new tool that allows it to investigate any potential antitrust issue and force changes without proving illegality. EU antitrust head Margrethe Vestager warned that the tech behemoths potentially risk being broken up as a “last resort” if they don’t adhere to the rules. Meanwhile, a German high court ruled against Facebook finding it abused its social media dominance to illegally harvest user data. Continue reading Big Tech Firms Face More EU Scrutiny, Facebook Loses Case

The Justice Department is scrutinizing Apple’s App Store rules, specifically the requirement that app developers use Apple Pay, which takes up to a 30 percent cut. Since mid-2019, lawyers have been interviewing app developers about their experiences with Apple. Developers have pushed back by blocking subscriptions and payments on their apps or charging higher rates on iPhone apps. The DOJ’s antitrust resources are focused on Google’s dominance in digital advertising, which may result in a case as early as this summer. Continue reading Justice Department Probes Requirements of Apple App Store

Apple rejected Facebook Gaming’s submission to the App Store for at least the fifth time since February. Sources said that, with each rejection, Apple referred to its rules that don’t allow apps with the “main purpose” of distributing casual games. Apple’s App Store is the only officially approved venue for iPhone and iPad owners to find new games (and other programs), which generated about $15 billion in revenue last year. Microsoft president Brad Smith said antitrust regulators need to look at the practices of app stores. Continue reading Apple Rejects Facebook App, Calls for Antitrust Probe Grow

The Justice Department recommended, in a 25-page report, that lawmakers repeal portions of Section 230 of the Communications Decency Act of 1996, which has given website operators broad immunity for what people post on their services. The proposed repeal would take away that immunity, forcing social media platforms and similar sites to be responsible for the videos, words, images posted by their users, while assuring that their moderation is consistent. The DOJ’s recommendation will have to be enacted by Congress. Continue reading DOJ Favors Withdrawing Section 230’s Immunity for Big Tech

European Commission executive vice president in charge of competition Margrethe Vestager is ramping up her scrutiny of U.S. tech giants, including Apple and Amazon. She’s currently targeting Apple’s “gatekeeper” position with third-party apps and Apple Pay. She is also looking more closely at Amazon’s position in online retail. Bloomberg Intelligence antitrust analyst Aitor Ortiz, however, noted that the $9 billion fine she levied against Google didn’t stop the tech giant from continuing to dominate search. The fines “don’t really have a deterrent effect,” he concluded. Continue reading Apple is Next Target of European Commission Investigations

While federal regulators are scrutinizing Amazon, Facebook and Google, the Big Tech companies are fighting to protect themselves by helping to fund a wide range of political groups that act as allies. One such group is the Connected Commerce Council (3C), a Washington-based nonprofit that describes itself as an advocate of small businesses — but also counts Amazon, Facebook and Google as “partners.” Meanwhile, the European Commission is reportedly going to levy formal antitrust charges against Amazon in the next two weeks. Continue reading Facing Increased Scrutiny, Big Tech Seeks Political Support

According to a review by ProPublica, tech giant Amazon has begun to reserve the best placement in search results for its own products. Brands have been able to bid on search terms in order to gain visible listings at the top of the Amazon product search results. They can still bid on such placements, which also earns them a “sponsored” tag. But ProPublica and consultants found that, during the coronavirus pandemic, the company made the top left position on the first page unavailable to anything other than its own private-label products. Continue reading Amazon Saves Premium Search Results for Its Own Products

Amazon is so overwhelmed by orders that it’s trying to slow down demand. CommerceIQ’s Guru Hariharan said the growth of the last few months would ordinarily take years, comparing it to a “a run on the bank.” Not all products are available, and some will take weeks to deliver. Amazon has earmarked supplies for Amazon Fresh and Whole Foods and, for some products, prioritized customers with recurring orders. It’s also changed its website to discourage buying, even cancelling Mother’s Day and Father’s Day promotions. Continue reading Amazon Tries to Temporarily Tamp Down Consumer Demand

The French Competition Authority fined Apple 1.1 billion euros ($1.23 billion) after determining that the company unfairly divided products and customers between two wholesalers, Tech Data and Ingram Micro, and forced them to charge the same prices as those offered in its own retail stores. The Authority president Isabelle de Silva stated that doing so had the effect of “sterilizing the wholesale market for Apple products.” Tech Data and Ingram Micro were fined 76.1 million euros and 62.9 million euros, respectively. Continue reading French Competition Authority Fines Apple & Two Wholesalers

Google is trying to overturn three European Union antitrust rulings, claiming that it had no legal grounds for imposing $9+ billion in fines. The EU found that Google had abused its dominance over smaller competitors. Google attorney Thomas Graf told the five General Court judges that, “competition law does not require Google to hold back innovation or compromise its quality to accommodate rivals.” Although a verdict is expected early next year, its rulings can still be appealed at the European Court of Justice. Continue reading Google Appeals EU Fine, Argues Legality of Self-Preferencing

The Federal Trade Commission is focused on acquisitions made by Big Tech companies, ordering Alphabet, Amazon, Apple and Microsoft to turn over information on such past deals. Specifically, the FTC wants to know about the smaller deals — many less than $100 million — that the companies were not required to report to regulators, in hopes of learning more about potential antitrust abuses. FTC chair Joseph Simons noted that if they find “problematic transactions,” they can conceivably “initiate enforcement action.” Continue reading FTC Looks Into Acquisition Strategies of Big Tech Companies

The European Commission’ antitrust probe into Facebook is now seeking internal documents related to allegations that Facebook suppressed competition by leveraging its own access to users’ data. EU investigators are also looking into changes Facebook made to software interfaces that enabled app developers to access data, as well as more information on Facebook’s use of Israeli VPN app Onavo it purchased in 2013. Facebook, which shut down Onavo last year, said it disclosed its data collection to users. Continue reading EU Presses Facebook for Documents Related to Competition

The Trump administration is working with U.S. tech companies, including AT&T, Dell and Microsoft, to develop common engineering standards for 5G telecom networks that would allow software to run on hardware from any manufacturer. In doing so, the U.S. would be able to advance 5G networks without relying on gear from China’s Huawei. White House economic advisor Larry Kudlow said, “the big picture concept is to have all the U.S. 5G architecture and infrastructure done by American firms, principally,” although it could also include technology from Ericsson and Nokia. Continue reading White House Pushes For 5G Standards and U.S. Networks