Tag: antitrust

Microsoft, Amazon AI deals get UK antitrust scrutiny

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Google warns Android growth in India will stall due to antitrust order

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The growth of Google’s Android ecosystem is on the brink of stalling in India due to an antitrust order that asks the company to change how it markets the platform, the U.S. company has said in a Supreme Court challenge seen by Reuters.

The Competition Commission of India (CCI) in October fined Alphabet Inc-owned Google $161 million for exploiting its dominant position in Android, which powers 97 percent of smartphones in India, and asked it to change restrictions imposed on smartphone makers related to pre-installing apps.

Google has so far said the CCI decision will force it to change its long-standing business model, but its Indian Supreme Court filing for the first time quantifies the impact and details the changes the company will need to make.

Also Read: Google is bringing new features to older versions of Android

Google will need to modify its existing contracts, introduce new license agreements and alter its existing arrangements with more than 1,100 device manufacturers and thousands of app developers, it says.

“Tremendous advancement in growth of an ecosystem of device manufacturers, app developers and users is at the verge of coming to a halt because of the remedial directions,” stated Google’s filing, which is not public.

“Google will be required to make far-reaching changes to the Android mobile platform which has been in place for the last 14-15 years.”

A Google spokesperson declined to comment.

Google has been concerned about the Indian decision as the remedies ordered are seen as more sweeping than the European Commission’s landmark 2018 ruling for imposing unlawful restrictions on Android mobile device makers. Google has challenged the record $4.3 billion fine in that case.

Google licenses its Android system to smartphone makers, but critics say it imposes restrictions like mandatory pre-installation of its own apps that are anti-competitive. The company argues such agreements help keep Android free.

The CCI in October ordered Google to not prohibit un-installing of its apps by Android phone users in India — currently, one can’t delete apps such as Google Maps or YouTube from their Android phones when they come pre-installed.

The CCI also said Google’s licensing of its Play Store “shall not be linked with the requirement of pre-installing” Google search services, the Chrome browser, YouTube or any other Google applications.

“No other jurisdiction has ever asked for such far-reaching changes based on similar conduct,” Google said in its court submissions.

The company has asked the Supreme Court to put on hold the remedial measures ordered by the CCI, which kick in from January 19, court documents dated January 7 showed. The case will likely be heard in the coming days.

Google has also alleged in its legal filings that the CCI’s investigation unit copied parts of a European 2018 ruling against the U.S. firm, Reuters has reported. The CCI and the European Commission have not responded to those allegations.

Also Read: Google to challenge India Android antitrust ruling at Supreme Court

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Key challenge for CCI is implementing amendments: Ex-chairman AK Gupta

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

The Competition Commission of India (CCI) will have to brace itself to operationalise path-breaking amendments, said A.K. Gupta, former chairman of CCI.

A parliamentary panel on finance is looking at the Competition Amendment Bill 2022 and the anti-competitive practices of Big Tech.

Among other measures, the proposed law seeks to regulate measures and acquisitions based on deal value thresholds.

Gupta said the new law proposes settlement and commitment, deal value threshold, leniency as well as regime. “Implementing the provisions of the new Competition Amendment Bill will be a challenge. The new CCI chief will have to hit the ground running due to the short implementation of time,” he said.

Also read: Govt appoints Sangeeta Verma as acting chairperson of CCI

He also said he didn’t see any ambiguity in deal value threshold. He said currently some mergers in the digital markets are not being able to be captured and the target entities command a significant market position because of control over tangibles.

“We would like to capture very few mergers in digital markets and would like to assess mergers that do not have substantial operations in India,” he said.

Also read: CCI slaps Rs 223.48-crore penalty on MakeMyTrip, Rs 168.88 crore on OYO

Talking about challenges in dealing with Big Tech, Gupta said that digital platforms have a decisive influence on online competition. They control the infrastructure, terms of access and have rule-setting power. “The power of digital platforms can have an adverse effect on the consumers and competition landscape. The challenge is to do market correction and with speed,” he said.

Last week, the CCI imposed a nearly Rs 2,500-crore penalty on Google for abusing its market dominance. The hefty fine on the tech major could have long-term implications for Big Tech companies.

Talking about that, Gupta said the CCI’s job is to make sure the competition landscape remains competitive. The CCI order will open a mobile ecosystem to competing apps of Google. “Competing indigenous apps were not getting a chance to flourish. Google was imposing its Google Pay billing systems and denying access to others. Third-party payment systems will now be able to compete,” he said.

He said the CCI has given behavioural remedies that are guidelines for other Big Tech companies. “If other Big Tech companies behave in a similar fashion then action can be taken against them as well. They should take a cue from the CCI orders against Google,” he said.

Watch video for the entire interview

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Multinational e-commerce players violating FDI rules, alleges CAIT

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

A few multinational e-commerce entities with a heavy arsenal of funding that are operating in India have attempted to flout the FDI norms, said the traders’ body, Confederation of All India Traders (CAIT).

Releasing a white paper document, the industry body said: “The FDI Policy is put to multifarious interpretations and e-commerce entities structure their relationship as marketplaces with sellers in such a way that they are in a position to control either the seller on their platform or the inventory, and also escape the scrutiny of the enforcement agencies.”

CAIT alleged that this also amounts to anti-trust conduct. “Under the guise of such control or ownership over sellers, the issue also permeates from being a mere FDI Policy violation to also being an anti-competitive conduct,” said CAIT said, adding: “The mitigating measures and strict action for enforcement of the law in letter and spirit are of paramount importance. Otherwise, the FDI Policy on e-commerce would fail in its very objective of catering to the interests of domestic manufacturers, traders, sellers, MSMEs, startups and creation of a level playing field in retail.”

Also read: CAIT bashes Amazon, says public advertisement laughable; expresses concern over violations of FDI laws

The definition of e-commerce, clearly capturing the role of a neutral e-commerce marketplace and the MRBT store operating in electronic form is the need of hour, CAIT suggested.

“To avoid such conflicts of interest and contain market distortions, it is essential that the marketplace platform act in a neutral manner and not have any relation with sellers (whether by shareholding, control or otherwise, directly or indirectly) or control sellers registered on the platform as that leads to marketplace to acting as seller itself, which is essentially, inventory-based model of e-commerce.”

Further, CAIT said a marketplace entity should not act as an inventory-based e-commerce entity, nor should an inventory-based e-commerce entity act as a marketplace entity. Also, an e-commerce regulator should be set up and commissioned to look into unfair trade practices of both end-consumers as well as the intermediate consumer such as sellers on the platform, it said.

“Protection of the right to free and fair trade should be ensured for several small sellers, who look forward to e-commerce platforms for their livelihood, and consumers, who are equally dependent on such platforms for their needs,” it said, adding that a mandatory GST registration for conducting e-commerce activities should be abolished.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Top US senator fears Big Tech at home as Alexa, Nest dominate

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

US lawmakers from both parties pressed Alphabet Inc’s Google and Amazon.com on Tuesday about their smart speakers markets, amid concern over the domination of the tech behemoths in this area. Senator Amy Klobuchar, chair of the Senate Judiciary Committee’s antitrust subcommittee, noted that Amazon had more than 50 percent of the smart speaker market while Google had 30 percent and stressed the importance of interoperability.

”In a few years, people might easily have 20 or more connected devices in their homes – from a vacuum and a fridge to speakers and lights. We want those devices to work with each other seamlessly,” she said. ”You shouldn’t have to choose the right devices for your home based on whether they play nicely with Google or Amazon’s digital assistants.”

Smart home technology includes smart speakers like Amazon’s Echo or Google’s Nest, security systems, or televisions.

Google Senior Public Policy Director Wilson White said interoperability was a goal and there were ”robust conversations” underway on how to achieve it.

Ryan McCrate, Amazon’s associate general counsel, said Amazon wanted users to have access to multiple assistants from a single device if that was what the user wanted.

Also Read: India likely to expedite Amazon, Flipkart antitrust probe as tech focus intensifies

Neither Google nor Amazon appeared to be trying for true interoperability, said Eddie Lazarus, chief legal officer for smart speaker maker Sonos.

Google contractually prohibits Sonos from using technology that allows users to switch between Amazon’s Alexa and the Google voice assistant, Lazarus said. He said Amazon’s effort to work with smaller companies was ”just an on-ramp into the Amazon ecosystem because you can’t mix and match between the big companies.”

Also Read: Big Tech critic Lina Khan becomes US Federal Trade Commission chair

The hearing took place at a time of extraordinary interest in tougher antitrust enforcement, much of it focused on the biggest US technology companies. One result has been a series of investigations and several federal and state lawsuits filed against Google and Facebook as well as a long list of antitrust bills.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Big Tech critic Lina Khan becomes US Federal Trade Commission chair

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Lina Khan, an antitrust researcher focused on Big Tech’s immense market power, was sworn in on Tuesday as chair of the US Federal Trade Commission, a victory for progressives seeking a clampdown on tech firms who hold a hefty share of a growing sector of the economy. Hours earlier, the US Senate had confirmed Khan, with bipartisan support.

She recently taught at Columbia Law School. Previously, as a staffer for the House Judiciary Committee’s antitrust panel, she helped write a massive report alleging abuses of market dominance by Amazon.com Inc, Apple Inc, Facebook Inc, and Google parent Alphabet Inc.

”We applaud President Biden and the Senate for recognizing the urgent need to address runaway corporate power,” advocacy group Public Citizen said in a statement. US Senator Elizabeth Warren tweeted that the administration’s selection of Khan was ”tremendous news.”

”With Chair Khan at the helm, we have a huge opportunity to make big, structural change by reviving antitrust enforcement and fighting monopolies that threaten our economy, our society, and our democracy,” Warren said in a separate statement.

The Information Technology and Innovation Foundation (ITIF), whose board includes representatives from tech companies, issued a statement warning that a ”populist approach to antitrust” would ”cause lasting self-inflicted damage that benefits foreign, less meritorious rivals.”

The federal government and groups of states are pursuing various lawsuits and investigations into Big Tech companies. The FTC has sued Facebook and is investigating Amazon. The Justice Department has sued Google.

Ahead of Khan’s appointment, Google and Amazon declined to comment and Apple and Facebook did not respond to a request for comment. Biden previously selected fellow progressive and Big Tech critic Tim Wu to join the National Economic Council.

In 2017, Khan wrote a highly regarded article, ”Amazon’s Antitrust Paradox,” for the Yale Law Journal. It argued that the traditional antitrust focus on price was inadequate to identify antitrust harms done by Amazon.

Also Read: Top US senator fears Big Tech at home as Alexa, Nest dominate

In addition to antitrust, the FTC investigates allegations of deceptive advertising. On that front, Khan will join an agency adapting to a unanimous Supreme Court ruling from April which said the agency could not use a particular part of its statute, 13(b), to demand consumers get restitution from deceptive companies but can only ask for an injunction. Congress is considering a legislative fix.

Also Read: India likely to expedite Amazon, Flipkart antitrust probe as tech focus intensifies

Khan previously worked at the FTC as a legal adviser to Commissioner Rohit Chopra, Biden’s pick to be director of the Consumer Financial Protection Bureau.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

India likely to expedite Amazon, Flipkart antitrust probe as tech focus intensifies

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

India’s antitrust watchdog plans to expedite a restarted probe into allegations of anti-competitive behaviour at Amazon.com Inc and Walmart Inc’s Flipkart, as it intensifies scrutiny of big-tech firms, two people close to the matter said. The comments come as major US technology firms including Twitter Inc and Facebook Inc are at loggerheads with the government over issues such as data privacy bills and policies some industry executives have called protectionist.

The Competition Commission of India (CCI) initiated a probe in January last year on the basis of a complaint alleging Amazon and Flipkart promoted select sellers on their e-commerce platforms and that deep discounts stifled competition. The companies have denied wrongdoing.

Near-immediate legal challenges from the pair stalled the probe for over a year until a court last week allowed it to resume, having dismissed arguments that the CCI lacked evidence.

Though Amazon and Flipkart are likely to appeal, the CCI plans to demand information from them related to the allegations ”as quickly as possible”, said one of the people, who declined to be identified due to the sensitivity of the matter. The investigation ”will be expedited”, the person said. Such investigations in India typically take months to complete.

Amazon declined to comment. Flipkart and the CCI did not respond to requests for comment.

PRIORITY

The CCI is speeding up all cases involving big technology firms, including by deploying additional officers for some cases and working to more stringent internal deadlines, said the two people, who are familiar with the watchdog’s thinking.

”Cases involving digital firms are getting a priority at CCI as they can have significant impact on the economy and Indian startups,” said one of the people.

Last year, the CCI began reviewing allegations of Google abusing the position of its Android operating system in the smart TV market, and is likely to soon order a comprehensive antitrust investigation, the people said.

Google declined to comment.

Such a probe would be the third against Google, with the Alphabet Inc unit already battling cases relating to Android as well as its payment app.

The CCI is also investigating practices at MakeMyTrip Ltd and privacy policy changes at Facebook’s WhatsApp.

PREFERENTIAL TREATMENT

The probe into Amazon and Flipkart is restarting at a time when both are battling accusations from offline retailers that their complex business structures allow them to circumvent foreign investment rules for e-commerce.

In February, a Reuters investigation based on Amazon documents showed the e-tailer for years gave preferential treatment to a small group of sellers on its Indian platform. While arguing to restart the probe, the CCI told a court in Karnataka state that the Reuters report corroborated evidence.

Amazon, which has said it ”does not give preferential treatment to any seller”, told the court it disagreed with the Reuters report. The antitrust body will examine the Reuters report and could use it as part of its investigation, one of the people said.

”The CCI’s plan to move faster on such cases is in line with other antitrust regulators globally that are investigating digital markets like e-commerce and online search, which are dynamic and evolving fast,” said an Indian antitrust lawyer who represents tech firms.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Google bows to antitrust pressure for first time, to make changes to global advertising

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

Google said it would make changes to its global advertising business to ensure it did not abuse its dominance, bowing to antitrust pressure for the first time in a landmark settlement with French authorities. The deal with the French competition watchdog could help rebalance the power over advertising in favour of publishers, which held sway over the business in the pre-internet era but lost control with the rapid rise of Google and Facebook.

The settlement, which was announced on Monday and also saw Google fined 220 million euros ($268 million), is the first time the US tech giant has agreed to make changes to its huge advertising business, which brings in the bulk of its revenue.

”The decision to sanction Google is of particular significance because it’s the first decision in the world focusing on the complex algorithmic auction processes on which the online ad business relies,” said France’s antitrust chief Isabelle de Silva.

The watchdog found that Google’s ad management platform for large publishers – Google Ad Manager – favoured the company’s own online ad marketplace – Google AdX – where publishers sell space to advertisers in real-time.

Ad Manager provided AdX with strategic data such as the winning bidding prices, while AdX also enjoyed privileged access to requests made by advertisers via Google’s ad services, the authority said.

AdX, in turn, exchanged data more smoothly with Ad Manager than it did with other advertising management platforms, the watchdog added. Such platforms are crucial for publishers to manage and sell advertising space.

Under the terms of the settlement, Google made commitments to improve the way Ad Manager services worked with rival ad servers and ad space sales platforms, the French watchdog said. Some changes would be implemented by the first quarter of 2022, it said, adding that Google would not appeal the decision.

Google also said it had agreed to make it easier for publishers to use its data and tools.

”We will be testing and developing these changes over the coming months before rolling them out more broadly, including some globally,” the company added.

’RIGHTLY SANCTIONED’

Many publishers globally have been infuriated over ad practices employed by the tech giants, whose success relies on the trove of data it has amassed over the years.

Most of Google’s sales come from search and YouTube ads. But last year about USD 23 billion was tied to helping publishers sell ads, drawing antitrust scrutiny to the connections between Google’s businesses, plus calls from some critics to break up the sprawling company.

French Finance Minister Bruno Le Maire welcomed the antitrust decision. ”The practices put in place by Google to favour its own advertising technologies have affected press groups, whose business model is heavily dependent on ad revenues,” he said. ”These are serious practices and they have been rightly sanctioned.”

The French authority said the decision opens the way for publishers who felt disadvantaged to seek damages from Google.

It launched its investigation in 2019 following a complaint from News Corp., French news publishing group Le Figaro and Belgian press group Rossel. The three publishers did not immediately respond to requests for comment.

($1 = 0.8225 euros)

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

France fines Google $268M for unfair online ads treatment

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

France’s anti-competition watchdog decided Monday to fine Google 220 million euros (USD 268 million) for abusing its dominant position in the online advertising business, an unprecedented move, the body said. Practices used by Google are particularly serious because they penalize Google’s competitors in certain markets and publishers of mobile sites and applications, the statement by the Competition Authority said.

The authority recalls that a company in a dominant position is subject to a particular responsibility, that of not undermining, the statement said.

Google, based in Mountain View, California, did not dispute the facts and opted to settle, proposing changes, the statement said. The head of the authority, Isabelle de Silva, said the decision was unprecedented.

(It’s) the first decision in the world to look into complex algorithmic auctions processes through which online display advertising works, she said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

EU vs US tech titans: Italy fines Google one day after Germany’s Facebook move

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

Listen to the Article (6 Minutes)

A day after Germany banned Facebook from using WhatsApp users’ data over privacy concerns, Italy on May 13 fined another tech giant, Google, over the charge of ‘abuse of dominant position.’

According to a report in Euronews, Italy’s antitrust authority slapped a fine of 102.8 million euros on Google as it refused to allow Enel X Italia to develop a version of its JuicePass app, which allows users to find and book a place at electric vehicle recharging stations, compatible with Android Auto.

Italy’s Competition and Market Authority (AGCM) said by refusing Enel X Italia inter-operability with Android Auto, Google has unfairly favoured its own Maps app.

A Google spokesperson told Euronews that they would review their options.

In March 2019, the European Union fined Google 1.49 billion euros for imposing restrictive clauses in contracts for third-party websites, preventing its rivals from placing their search adverts on these sites.

Not just Google, several tech giants have been fined or slapped with a host of court cases in Europe in recent years for alleged anti-competitive practices.

Germany: Ban on Facebook

Germany’s ban on May 12 follows a controversy surrounding WhatsApp’s latest privacy terms, which the country’s data protection regulator for Facebook said was illegal.

WhatsApp, which has around 60 million users in Germany, has asked them to accept the new terms or stop using it.

Questioning the legitimacy of the ban, WhatsApp, which is owned by Facebook, said the Hamburg data protection authority misunderstood the purpose of the update.

But Germany’s national antitrust regulator has said that Facebook’s data practices amount to an abuse of market dominance.

Even Italy’s AGCM had  fined Facebook 10 million euros for misleading users over its data practices in 2018.

Italy: Cloud over Google, Apple and Dropbox

Italy’s competition watchdog opened an inquiry into Google, Apple and Dropbox’s contracts for cloud computing services last year following a number of complaints alleging unfair commercial practices by the tech giants.

The three companies were probed for alleged failure to adequately indicate to users when their data was being collected for commercial purposes.

EU: Apple Guilty as Charged

Earlier this month, the European Commission found that Apple is in breach of EU competition law in relation to the company’s App Store practices. It had started an investigation into an initial complaint from Spotify.

In 2018, Apple also faced another case over intentional slowing down of iPhones with older batteries.

 France: Google and Amazon Fined for Cookies

Last December, France’s online data privacy watchdog fined Google and Amazon 100 million and 35 million euros, respectively for allegedly breaching rules on cookies.

The National Commission for Informatics and Liberties (CNIL) found both the American tech giants automatically placed advertising trackers on users’ computers without their consent.

Disagreeing with the CNIL’s decision, Amazon had said in a statement that protecting the privacy of customers has always been a top priority for the company.

Google too echoed that it stood by its record of providing upfront information and clear controls, strong internal data governance, secure infrastructure and helpful products.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow