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LATEST NEWS UPDATES | Tech Platforms Feel the Heat -CP Chandrasekhar

Tech Platforms Feel the Heat -CP Chandrasekhar

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published Published on Nov 13, 2020   modified Modified on Nov 17, 2020

-NetworkIdeas.org

In a move that was expected, the US Justice Department has filed an anti-trust lawsuit against internet search giant Google, alleging that it resorts to anti-competitive practices to ensure its dominance in the search engine space and, through that, over the related online advertising revenues. As a leading example the case cites the successful effort to exclude the competition through a deal, in place since 2005, in which Google pays Apple around $8-12 billion a year in return for pole position as the default search engine in Apple’s devices and the Safari browser. Around half of Google’s search traffic is reportedly mediated by Apple devices. Such practices, Justice holds, help Google attract users and win a substantial share of the internet advertising revenue pie, a part of which is used to pay off Apple and other browser providers who direct users to Google search, completing the circle.

The Justice Department’s move is significant as it has been more than two decades since the institution last moved against a tech major for the misuse of monopoly through its case against Microsoft. Further, signs are that this may be the first in a series of cases against leading firms in the digital economy. In what appears to be a major pushback against the power of the platform companies in their home turf, Amazon, Apple, and Facebook (besides Google) have come under attack. A bipartisan Antitrust Subcommittee of the Committee on the Judiciary of US House of Representatives has recently completed a 450-page report that makes a case for moving against this group of companies. Arguing that over the last decade several sectors of the digital economy, such as social networking, search and online advertising, have come to be dominated by one or two firms, the report holds that the monopolisation has had far-reaching detrimental effects in the form of a reduced pace of innovation, the decline of trustworthy sources of news, the misuse of deftly mined consumer data, and the undermining of economic and political liberties. Meanwhile, on a parallel track, the US Federal Trade Commission is reportedly discussing the launch of an antitrust case against Facebook based on complaints that the social networking major snuffs out competition, including through acquisitions as happened in the case of Instagram.

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(This article was originally published in the Frontline Print edition: November 20, 2020.)


NetworkIdeas.org, 13 November, 2020, https://www.networkideas.org/news-analysis/2020/11/tech-platforms-feel-the-heat/?fbclid=IwAR0jH0LFhSr_D6Yc41NCvtQ8sEXPCbE_3403rsrphqiui-DSKkPGxsKYyV8


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