Mega Monopolies
#pv_diaries #monoply #megamonopoly #antitrust #antitrustlaw The four giants have been investigated: Amazon, Apple, Facebook and Google. They are accused of what some call, "mega monopoly". The investigation has thrown some critical insights into how they are behaving monopolistically. How each of them is trying to establish a monopoly and not allowing the competitors to compete in an unfair manner.
Epic Games is the hero who brought Apple and Google to the court for removing his game (the maker of Frontline) from Apple Store and Google Play Store. It then followed series of suits against these big four with varying accusations. Amazon has been accused of (mis)utilizing the data of third party sellers on its platform. (It is accused) that using the same data, Amazon benefited (as it itself is also a seller on its own platform).
What the Report Says ( Source: https://www.nytimes.com/interactive/2020/10/06/technology/house-antitrust-report-big-tech.html)
“This pattern of behavior raises questions about whether these firms view themselves as above the law, or whether they simply treat lawbreaking as a cost of business.” (Source: https://www.nytimes.com/2020/10/06/technology/congress-big-tech-monopoly-power.html)
The main thing in deciding/blaming a company for being monopolistic is not its market share. One may not monopolistic even with a 90% market share. It is the behavior that matters. If a company with 90% market share plays, as per the rules of the game, it is all right. But if it kills the competitors by unfair means, that behavior is problematic.
There are plenty of examples where these companies have shown their dominant position, and how it can create troubles for even giants like Huawei. It is well reported how Google stopped providing support to Huawei (as ordered by USA Govt). Please note that we should not argue here, how Huawei was accused of stealing data of Americans and deposit it to the Chinese Government. It is an issue for a separate debate. The point is, how Google, by stopping updates of Android to Huawei, demonstrated that it can armtwist any other company in future too (especially if it is a competitor).
In fact, PayTM in India became its victim.
Recently, PayTM was removed from Google Play Store on some pretext. One of my friends sent me that "news" (I am generally the one who shares news to many - it is kind of monopoly I enjoy with some in my circle!, plus, he knows that I am a big fan of PayTM and he just wanted to "taunt" me how PayTM was removed from Google Playstore. He probably wanted to say that PayTM was something illegal type of entity. I "taunted" him back by saying that PayTM was fully approved by all the Indian authorities and that "he" needs not to worry!!). Franky, it was a case of arm twisting by Google as it is finding it difficult to compete with PayTM in the open market. I remember, how Samsung had strongly argued in the American courts, vs Apple, in a case of patent infringement that, because Apple was unable to compete in an open market, it was dragging Samsung to the court, to settle the score, in a way. We, in India, need our own ecosystem, if we were not to be dominated by Google or other big US tech giants. While such tech giants' contribution to our economy cannot be denied, what they are getting back in terms of data and the kind of monopoly they may create, is something to worry about. China has found its alternatives to Amazon, FB and Google (like Baidu, AliBaba etc).
The rule by Google that, in-app purchases must be made through the play store's billing system, has also created controversy. PayTM CEO has asked Indian tech start-ups to voice against the dominance in this ecosystem by Google. His argument is that when Indian tech start-ups are already following the law of the land, why should Indian tech start-ups have to be dancing to the tunes of the Google policymakers? PayTM has launched a mini appstore to answer Google and create an alternative (read competition).
That there is a choice is an illusion is something I came across recently. I want to buy a new phone. The problems with Android are plenty. One, it does not provide security patches for a long time (three year maximum). Two, various companies like Samsung, Oppo etc. take their own time in releasing these updates. Three, I feel suffocated as the market has only two choices: iOS and Android in terms of mobile OS.
But wait. The nature always strikes a balance. A series of options like KaiOS, Tizen (Samsung), Harmony OS (Huawei), Ubuntu touch are emerging and it is only a matter of time that we will have new OS (and the Ecosystems as well) that compete with iOS and Android. It is required because, right now, Google has failed to provide support of security patches to old devices and there is no clarity as to how much support it provides. For example, Google has failed to clarify how much support it will provide if I buy a new phone. Some makers like Nokia or Samsung may be an exception to that (but generally only for their high priced models by and large. Nokia 5.3 is an exception) (https://www.bbc.com/news/technology-51751950)
Although I would not like to be very explicit, I am afraid that we are celebrating a potential mega monopoly creation in India. Do you have to say anything on that? Try and answer to what I am pointing to and share your views in the comment section below.
