Big Tech Competitive Landscape

An probe was announced by the United States Department of Justice on Tuesday to tech that was large .

The DoJ intends to review if they’ve engaged in practices that reduced competition or harmed consumers and how market power was attained by the platforms.

Far-Ranging Scope

The department will consider concerns of businesses consumers and entrepreneurs over providers media and search. Public input will be sought by its Antitrust Division, including from industry participants into rivalry between platforms.

The purpose is to make sure Americans have access to markets that are free. If it defines violations of law the DoJ will seek treatment.

While no companies were named by the department there are signs that Facebook, Google and Amazon are one of its targets of interest.

“The breadth of this appears to be enormous, so it will most likely lack depth, concentrate or purposeful change,” commented Willy Leichter, vice president of marketing at Virsec.

“A thoughtful evaluation of real antitrust problems with e-commerce being increasingly dominated by Amazon might yield useful results,” he told TechNewsWorld,”but toss in a mess of problems with conflicting agendas, and the process will probably devolve into political theatre.”

There is no doubt. The Antitrust Subcommittee of the House Judiciary Committee last month announced a bipartisan investigation in markets that were electronic.

Congressional oversight is necessary to ensure that the Trump government”does not abuse this essential review so as to pursue its own partisan agenda,” Warren said. “This issue is too important to be hauled into Trump’s petty grievances against those firms.”

Doubt was expressed by some tech analysts.

“We can expect rigorous investigations before the election year cycle,” said Ray Wang, chief analyst in Constellation Research.

The analysis”will put a microscope on large tech and it’ll empower those who focus on compliance, but with no decision frame, this is merely possible to create confusion and decrease these companies’ ability to execute short term,” said Rob Enderle, principal analyst at the Enderle Group.

“These things can get enormous distractions,” he told TechNewsWorld.

The DoJ investigation”will lower [the United States’] ability to compete internationally in the short term, but could lead to stronger firms in the long run,” Enderle said. “It all depends upon how the authorities and these companies deal with what comes from the investigation.”

On the flip side,”the slow pace of investigations is not likely to keep up with the development of major tech and will most likely be no more than a speed bump,” Virsec’s Leichter suggested.

Fear and Loathing

Google and facebook have been fined for violating users’ privacy. Amazon, in addition to both companies, face potential activities in the EU.

While huge fines are levied — Facebook just agreed to a US$5 billion settlement with the U.S. Federal Trade Commission — activists’ concerns haven’t been allayed.

Congress should enable state attorneys-general to research Facebook before it”can further afield democracy,” Miller suggested.

Fear has struck into retailers big and small.

Almost 75 percent of retailers with at least 100 workers have voiced concern based on a ActiveViam study covering 500 pricing decision makers at firms.

There is cause for concern where a market has over 100 million users, Wang said. “When markets have 1 billion active users, you have a situation led to electronic duopolies.

We need regulatory protections, he said, but”the problem is that most legislators lack the technical chops to know how to write privacy policies which put the power back in the customers’ hands while ensuring public good and empowering a market for e-commerce.”

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