At any point of the digital transition,…
Wednesday, October 7, 2020 – 12:03 GMT
The U.S. House of Representatives Anti-Monopoly Judicial Commission investigated four big technology firms in the United States’ misuse of industry monopoly control and concluded that these corporations used “fatal deals” to clamp down on rivals, charge unfair rates, and use revenues as a lure to compel them. Small companies sign terms that are “oppressive.”
These four technology firms are Google, Apple, Amazon and Facebook by Symbol, and their total market cap is $5 trillion. The subcommittee’s investigative report advises that their companies should be structurally divided and that they do not manage and interact with similar businesses at the same time. However, the spin-off of these businesses was not suggested by the investigative findings.
The study report of the committee is 449 pages long, with rigorous wording, detailing numerous cases of firms violating industry monopoly control and proposing substantial amendments to the antitrust legislation.
Simply put, those start-ups that were once high-spirited, low-status, and questioning the status quo have now evolved into monopolies, “the study says.” In the age of oil tycoons and railroad tycoons, they are much like the monopolies we see. It is the same for corporations.
Amazon cautioned in a blog post published on Tuesday local time in reaction to the investigative report of the subcommittee that this industry interference will stifle independent retailers, cause small companies to withdraw from famous online markets, drive up costs, and limit customers. Eventually, choice and convenience would damage customers.
“In a statement, Google said,” The competition from Google is legitimate in a fast-growing and intensely competitive market. We disagree with the survey report published today, regarding the obsolescence of commercial rivals to Google in terms of search and other resources. And false claims.
Facebook claimed to be a “American success story” in reaction to this article. Facebook said, “We compete with numerous providers. Acquisitions are what’s going on in every market. It’s a way for us to create new innovations and provide customers with more value.”
Apple said, “The analysis is fair and necessary, but we respectfully disagree with the report’s findings.” Apple also defended the commission rate strategy of its app store and said that in the next few days it would make adjustments. Large reaction.
After more than a year of investigation, the subcommittee headed by Democratic Congressman David Cicilline, after reviewing 1.3 million records and performing more than 300 interviews, found that the activities of these firms are also a rival to the industry itself. For this sector, they have developed a set of laws, but they do not behave according to the law themselves.
In addition, these technology giants are now being prosecuted by the US Department of Justice and are likely to file a complaint against Google shortly.
While the Republicans on the panel were dismissive of these firms, the technology firms could not want to be divided.
The investigative study suggests stopping free enterprise from being stifled. In 2012, the takeover of Instagram by Facebook was an instance of stifling rivalry. At the moment, Instagram was tiny and trivial, but its potential was noticed by Facebook CEO Mark Zuckerberg. It is “building a network that is competitive with us,” Zuckerberg said at the time, “that in the future will cause us a lot of interference.”
A list of suggestions for improvements to the antitrust legislation was drawn up by the staff of the subcommittee as part of the report. These recommendations include banning the distribution of service systems by corporations such as Amazon and encouraging themselves to become competitive on the network , i.e. to address the unfairness of referees and athletes. The report also suggests that the budget for antitrust law enforcement departments, including the Department of Justice ‘s antitrust section and the Federal Trade Commission, be expanded.
The study also encouraged Congress to encourage antitrust law enforcers to have further leverage to discourage the takeover of future rivals by technology firms, which is now impossible to achieve.