CAA’s Articulate – Antitrust trial in the US


Context:

  • The CEO’s of Google, Apple, Amazon and Facebook are testifying before the U.S. House Judiciary Subcommittee on Antitrust, Commercial, and Administrative Law.

More on News:

  • The committee prima facie accused the giants of manipulating the technological space using their money and data power.
  • Heads of Google, Facebook, Amazon and Apple were convened to enquire about their alleged breach of trust pertaining to fair practices and data security laws.
  • This gives them the edge to dominate their niche and impedes the rivals from becoming big.
    • Generally the small companies are either bought by them (E.g – Facebook bought instagram and whatsapp) or
    • Their products are shunned from the the market in wake of privacy concerns (E.g – There is an allegation on Apple that in order to promote its own app which allows parents to limit the screen time for kids, it has thrown out a rival app on the pretense of it not being safe).

Key takeaways from the proceedings

  • Amazon questioned on use of sales data by private sellers
  • Google accused of stealing content from Yelp
  • Facebook’s acquisition of Instagram under scrutiny
  • Apple wielded “an enormous amount of power” because of the coveted app marketplace

Conclusion:

The committee just wants to ensure that free competition and data protection is respected by all throughout the US and the tech space is not monopolished by a few big companies.