How Big Tech companies gain and maintain dominance

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Democrats from a U.S. House of Representatives subcommittee issued a report on Tuesday detailing tactics it said four of the biggest technology companies used to gain dominant positioning in online search, advertising, social networking shopping and other businesses.

sells its own products as well as goods from independent merchants on a single platform. The Congressional report alleged that Amazon has"monopoly power" over many of these merchants, which"do not have a viable alternative to Amazon for reaching online consumers." The result, the report alleged, is a"conflict of interest" in which Amazon has an incentive to use competing merchants' data and can advantage its own goods and services.

The fix: The lawmakers’ proposals could force Apple to stop competing in markets where its rivals rely on its App Store to reach consumers. While the report has few details on how such rules would work, in theory they could force Apple to exit major businesses such streaming music, streaming television and cloud storage. Another proposal to create rules against self-preference could hamper Apple’s ability to remove apps from its App Store that compete with its own services.

The fix: The report stopped short of recommending a breakup of Facebook, but proposed boosting the budgets of antitrust enforcers and allowing them more leeway to stop companies from purchasing would-be rivals.

 

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