The world’s four most valuable companies are Apple, Microsoft, Alphabet-Google, and Amazon and both Google and Amazon were in the news today for alleged anti-competitive behavior.
A New York Times story was headlined “U.S. Suit Against Google Is Said to Focus on Its Dominance in Search.” The story’s opening grafs:
WASHINGTON — The Department of Justice’s impending lawsuit against Google has narrowed to focus on the company’s power over internet search, a decision that could set off a cascade of separate lawsuits from states in ensuing weeks over the Silicon Valley giant’s dominance in other business segments.
In presentations to state attorneys general starting on Wednesday, the department is expected to outline its legal case centered on how Google uses its dominant search engine to harm rivals and consumers, said four people with knowledge of the plan, who spoke on the condition of anonymity because the details were confidential. . . .
The department’s complaint could come as early as next week and is expected to start a multipronged battle against Google, the search giant owned by Alphabet. While details are still being completed, the case on search is expected to focus on Google’s agreements with other companies like Apple, which set its search engine as the default option for users on iPhones and other devices. Those agreements give Google’s search engine an advantage over other rivals.
The Wall Street Journal today had a page one story headlined “Amazon Restricts Ad Buying by Rivals.” The opening grafs:
Amazon.com Inc.is limiting the ability of some competitors to promote their rival smart speakers, video doorbells and other devices on its dominant e-commerce platform, according to Amazon employees and executives at rival companies and advertising firms.
The strategy gives an edge to Amazon’s own devices, which the company regards as central to building consumer loyalty. It puts at a disadvantage an array of gadget makers such as Arlo TechnologiesInc. that rely on Amazon’s site for a significant share of their sales.
The e-commerce giant routinely lets companies buy ads that appear inside search results, including searches for competing products. Indeed, search advertising is a lucrative part of the company’s business. But Amazon won’t let some of its own large competitors buy sponsored-product ads tied to searches for Amazon’s own devices, such as Fire TV, Echo Show and Ring Doorbell, according to some Amazon employees and others familiar with the policy.
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Jeff Bezos, owner of the Washington Post, is, according to Forbes, the world’s wealthiest person for the third year in a row, despite giving $36 billion worth of his Amazon stock to his ex-wife MacKenzie Bezos as part of their divorce settlement last summer. He’s worth $113 billion, buoyed by a 15% rise in Amazon’s shares since our 2019 list.
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