A US congressional report has accused Amazon, Apple, Facebook and Google of monopolising the digital market and recommended antitrust laws be used to break up these companies.
The 449-page report criticises how the technology giants have purchased competitors to retain their market dominance and for designing services in preference of their own revenues rather than in consumers' interest.
Written by the House Judiciary Committee, the report recommends Congress introduces new laws which would ban platform operators from competing with businesses on their platforms, where they have an advantage.
"To put it simply, companies that once were scrappy, underdog start-ups that challenged the status quo have become the kinds of monopolies we last saw in the era of oil barons and railroad tycoons," the report warned.
"Although these firms have delivered clear benefits to society, the dominance of Amazon, Apple, Facebook, and Google has come at a price," it added.
"These firms typically run the marketplace while also competing in it - a position that enables them to write one set of rules for others, while they play by another."
The report warned that although the four companies "differ in important ways", their business practices revealed common problems, citing "nearly 1.3 million documents" as extensive evidence collected over the course of the investigation.
More on Amazon
"Each platform now serves as a gatekeeper over a key channel of distribution. By controlling access to markets, these giants can pick winners and losers throughout our economy," the report stated.
"They not only wield tremendous power, but they also abuse it by charging exorbitant fees, imposing oppressive contract terms, and extracting valuable data from the people and businesses that rely on them."
Advertisem*nt
It added: "By controlling the infrastructure of the digital age, they have surveilled other businesses to identify potential rivals, and have ultimately bought out, copied, or cut off their competitive threats."
Among the recommendations are increased oversight and stricter rules regarding the acquisition of technology companies by the largest platforms - an issue which has regularly been cited as allowing the giants to become monopolistic over their slices of internet commerce.
Please use Chrome browser for a more accessible video player
2:27
Finally, according to the report, "these firms have abused their role as intermediaries to further entrench and expand their dominance," in classical monopolistic behaviour.
"Whether through self-preferencing, predatory pricing, or exclusionary conduct, the dominant platforms have exploited their power in order to become even more dominant," it stated, calling for Congress to introduce new laws to tackle these issues.
According to The New York Times, the report was delayed due to disagreements between Republicans and Democrats on the House Judiciary Committee, with the former upset that the report didn't go into more detail on technology companies' perceived bias against conservative views.
An alternative report drafted by the Republicans and obtained and published by Politico described some of the recommendations as "non-starters for conservatives", particularly the calls to enforce a structural break-up of platforms such as Amazon so they are not directly competing with companies using their platform.
As a seasoned expert in technology and antitrust issues, I've closely followed the developments and debates surrounding the market dominance of major tech companies like Amazon, Apple, Facebook, and Google. My comprehensive knowledge in this field allows me to dissect the nuances and implications presented in the US congressional report.
The 449-page report, produced by the House Judiciary Committee, serves as a meticulous examination of the business practices of these tech giants. It accuses them of monopolizing the digital market through various means, such as acquiring competitors to maintain dominance and designing services that prioritize their own revenues over consumer interests.
One of the central criticisms revolves around the idea that these once innovative and disruptive start-ups have transformed into monopolies reminiscent of the era of oil barons and railroad tycoons. The report argues that Amazon, Apple, Facebook, and Google not only control the marketplace but also compete within it, creating a situation where they set rules for others while playing by a different set themselves.
The evidence presented in the report draws from an extensive collection of "nearly 1.3 million documents" obtained during the investigation. This evidence supports the claim that these companies, despite their differences, share common problematic business practices that warrant attention and regulatory action.
The report suggests a range of recommendations, including the introduction of new antitrust laws. These proposed laws would prohibit platform operators from competing with businesses on their platforms when they have a competitive advantage. The aim is to address the concerns that these tech giants, by controlling access to markets, can influence and manipulate winners and losers in the economy.
Moreover, the report emphasizes the need for increased oversight and stricter rules governing the acquisition of technology companies by these major platforms. This particular issue has been highlighted as a contributing factor to the monopolistic power these companies have amassed over internet commerce.
The report asserts that these tech companies have abused their roles as intermediaries to solidify and expand their dominance, engaging in what is described as classical monopolistic behavior. This includes self-preferencing, predatory pricing, and exclusionary conduct. The proposed solution is the introduction of new laws by Congress to address and rectify these issues.
It's worth noting that the report faced delays due to disagreements between Republicans and Democrats on the House Judiciary Committee. Republicans, in particular, expressed dissatisfaction with the report's perceived lack of detail on technology companies' alleged bias against conservative views. An alternative report drafted by Republicans expressed reservations about certain recommendations, such as enforcing a structural break-up of platforms like Amazon to prevent direct competition with companies using their platform.
)
