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Paul Merrell

FTC Hits Amazon With 'One of the Most Important Antitrust Cases in US History' - 1 views

  • Economic justice advocates applauded on Tuesday as the Federal Trade Commission and 17 states filed a sweeping antitrust lawsuit against Seattle-based Amazon.com for illegally dominating the online retail economy at the expense of consumers.
  • The 172-page complaint "lays out how Amazon has used a set of punitive and coercive tactics to unlawfully maintain its monopolies," said FTC Chair Lina Khan in a statement. "The complaint sets forth detailed allegations noting how Amazon is now exploiting its monopoly power to enrich itself while raising prices and degrading service for the tens of millions of American families who shop on its platform and the hundreds of thousands of businesses that rely on Amazon to reach them." The document—filed in a federal court in Washington state—alleges that Amazon maintains "durable monopoly power" in the online superstore and marketplace services markets, including by stifling price competition and coercing sellers into using its fulfillment service.
Paul Merrell

Facebook parent hit with record $1.3 billion fine by European regulators | KRON4 - 0 views

  • The European Union slapped Meta with a record $1.3 billion privacy fine Monday and ordered it to stop transferring user data across the Atlantic, the latest salvo in a decadelong case sparked by U.S. cybersnooping fears. The penalty fine of 1.2 billion euros from Ireland’s Data Protection Commission is the biggest since the EU’s strict data privacy regime took effect five years ago, surpassing Amazon’s 746 million euro penalty in 2021 for data protection violations. The Irish watchdog is Meta’s lead privacy regulator in the 27-nation bloc because the Silicon Valley tech giant’s European headquarters is based in Dublin. Meta, which had previously warned that services for its users in Europe could be cut off, vowed to appeal and ask courts to immediately put the decision on hold.
Paul Merrell

Major states teaming up with U.S. Justice Department to sue Google - 1 views

  • Several states including New York, Colorado, Virginia and California have joined with the Department of Justice to sue Google, charging that the online giant is illegally monopolizing the market for online ads. Claims include "self-dealing, anticompetitive acquisitions, and forcing businesses to use multiple products and services that it offers," according to a new report in Politico.
Paul Merrell

Why I'm Suing YouTube and Google - 1 views

  • September 29, 2021, Google deleted my YouTube account for “violating community guidelines” they’d implemented that same morning September 28, 2022, I filed a lawsuit against Google, YouTube and Alphabet Inc. for breach of contract. YouTube unilaterally amended the contract without notice, which is a violation of its own terms, and then used this last-minute amendment to remove my content YouTube’s terms of service also include a “three strikes” policy, where users are supposed to be given three warnings and opportunities to remove content that violates the guidelines BEFORE being banned. I had no “strikes” against my channel on the day I was deplatformed and deleted We’re also suing YouTube for unjust enrichment, as for the last 16 years, my video content, having generated in excess of 50 million views, has been of great financial benefit to YouTube, allowing them to increase advertising revenue on the site November 8, 2021, I sued U.S. Sen. Elizabeth Warren, both in her official and personal capacities, for violating my First Amendment rights, as she tried to force Amazon.com to ban my book, “The Truth About COVID-19” September 29, 2021, Google deleted my YouTube account for “violating community guidelines” — guidelines they’d implemented that very same morning. September 28, 2022, I filed a lawsuit1 against Google, YouTube and Alphabet Inc. for breach of contract.2 As detailed in my complaint, YouTube unilaterally amended the contract without notice, which is a violation of its own terms, and then used this last-minute amendment to remove my content, which went back to 2005, the same year YouTube was founded. At the time YouTube deleted my content, I had more than 300,000 subscribers, and my videos had collectively garnered more than 50 million views. While I disagreed with YouTube’s censorship, when its “COVID-19 misinformation” policy was implemented back in April 2021, I carefully avoided posting any content on YouTube that might violate that guideline. In fact, over 16 years on the platform, I never once received notice of any “strike” against my channel for violation of community guidelines.
Paul Merrell

Meta reaches $37.5 mln settlement of Facebook location tracking lawsuit | Reuters - 1 views

  • Meta Platforms Inc (META.O) reached a $37.5 million settlement of a lawsuit accusing the parent of Facebook of violating users' privacy by tracking their movements through their smartphones without permission.A preliminary settlement of the proposed class action was filed on Monday in San Francisco federal court, and requires a judge's approval.It resolved claims that Facebook violated California law and its own privacy policy by gathering data from users who turned off Location Services on their mobile devices.Register now for FREE unlimited access to Reuters.comRegisterAdvertisement · Scroll to continueThe users said that while they did not want to share their locations with Facebook, the company nevertheless inferred where they were from their IP (internet protocol) addresses, and used that information to send them targeted advertising.Monday's settlement covers people in the United States who used Facebook after Jan. 30, 2015.Meta denied wrongdoing in agreeing to settle. It did not immediately respond on Tuesday to requests for comment.Advertisement · Scroll to continueIn June 2018, Facebook and Chief Executive Mark Zuckerberg told the U.S. Congress that the Menlo Park, California-based company uses location data "to help advertisers reach people in particular areas."As an example, it said users who dined at particular restaurants might receive posts from friends who also ate there, or ads from businesses that wanted to provide Services nearby.The lawsuit began in November 2018. Lawyers for the plaintiffs may seek up to 30% of Monday's settlement for legal fees, settlement papers show.Advertisement · Scroll to continueThe cases is Lundy et al v Facebook Inc, U.S. District Court, Northern District of California, No. 18-06793.
Paul Merrell

Google, Amazon Face Shareholder Revolt Over Israeli Defense Work - 3 views

  • Google and Amazon are both set to help build “Project Nimbus,” a mammoth new cloud computing project for the Israeli government and military that is spurring intense dissent among employees and the public alike. Shareholders of both firms will soon vote on resolutions that would mandate reconsideration of a project they fear has grave human rights consequences. Little is known of the plan, reportedly worth over $1 billion, beyond the fact that it would consolidate the Israeli government’s public sector cloud computing needs onto servers housed within the country’s borders and subject solely to Israeli law, rather than remote data centers distributed around the world. Part of the plan’s promise is that it would insulate Israel’s computing needs from threats of international boycotts, sanctions, or other political pressures stemming from the ongoing military occupation of Palestine; according to a Times of Israel report, the terms of the Project Nimbus contract prohibit both companies from shutting off service to the government, or from selectively excluding certain government offices from using the new domestic cloud.
  • While a wide variety of government ministries will make use of the new computing power and data storage, the fact that Google and Amazon may be directly bolstering the capabilities of the Israeli military and internal security services has generated alarm from both human rights observers and company engineers. In October 2021, The Guardian published a letter from a group of anonymous Google and Amazon employees objecting to their company’s participation. “This technology allows for further surveillance of and unlawful data collection on Palestinians, and facilitates expansion of Israel’s illegal settlements on Palestinian land,” the letter read. “We cannot look the other way, as the products we build are used to deny Palestinians their basic rights, force Palestinians out of their homes and attack Palestinians in the Gaza Strip — actions that have prompted war crime investigations by the international criminal court.” In March, an American Google employee who had helped organize the employee opposition to Nimbus said the company abruptly told her she could either move to Brazil or lose her job, a move she said was retaliation for her stance. Nimbus will now face a referendum of sorts among Google and Amazon shareholders, who next month will vote on a pair of resolutions that call for company-funded reviews of their participation in that project and others that might harm human rights.
Paul Merrell

Big Tech companies appeal to Supreme Court to strike down Texas law banning political censorship - LifeSite - 0 views

  • Facebook and Google are among multiple Big Tech companies seeking to have Texas’ new law banning political censorship on social media axed by the Supreme Court. According to The Washington Post, advocacy groups NetChoice and the Computer & Communications Industry Association (CCIA) filed an emergency application with the U.S. Supreme Court on Friday on behalf of Facebook, Google and other Big Tech companies, with the intention of striking down the new Texas law that prohibits censorship based on political ideology on social media. In a statement about the emergency filing, NetChoice counsel Chris Marchese argues that the Texas law, which went into effect last Wednesday, “strips private online businesses of their speech rights, forbids them from making constitutionally protected editorial decisions, and forces them to publish and promote objectionable content.”
  • “Left standing, [the Texas law] will turn the First Amendment on its head — to violate free speech, the government need only claim to be ‘protecting’ it,” Marchese added. Under the law, Texas residents and the state’s attorney general would be permitted to sue social media companies based in the United States if they believe their social media accounts were censored based on their political views. While the law was initially blocked by a federal district judge after it was signed last September by Texas Gov. Greg Abbot, the injunction was ultimately lifted by an appeals court last Wednesday. Big Tech companies have been consistently charged with weaponizing their “Terms of Service” agreements with users in an effort to ban or censor those expressing traditionally conservative or right-wing views on their extremely large and influential platforms.
Paul Merrell

Facebook, Instagram could shut down in Europe over data transfer - 0 views

  • Meta could shut down Facebook and Instagram throughout Europe if regulators are unable to hammer out a permanent data transfer deal, the company warned in a recent SEC filing. The claim from Mark Zuckerberg’s company came as officials in the European Union and US attempt to craft a new trans-Atlantic data transfer agreement. The EU’s Court of Justice struck down a previous agreement, dubbed Privacy Shield, in 2020, due to concerns it could not ensure data security for Europeans once it is sent to the US. Without a transnational deal in place, Meta could face legal and regulatory obstacles when it transfers user data, which plays a key role in its lucrative advertising business that comprises the bulk of the company’s annual revenue. “If a new transatlantic data transfer framework is not adopted and we are unable to continue to rely on SCCs (standard contractual clauses) or rely upon other alternative means of data transfers from Europe to the United States, we will likely be unable to offer a number of our most significant products and services, including Facebook and Instagram, in Europe,” Meta officials said in the filing.
Paul Merrell

Four Attorneys General Sue Google Over Privacy Claims - The New York Times - 0 views

  • Three states and the District of Columbia allege that the tech giant misled consumers by continuing to track those who had changed their privacy settings to prevent data collection.
  • Google is also fighting an antitrust lawsuit led by Texas in which states have accused the company of obtaining and abusing a monopoly over the systems that allow publishers to auction off ad space to marketers. On Friday, Google asked a federal court to dismiss the lawsuit.The lawsuits add to a mounting offensive by regulators to curtail the power and business practices of Silicon Valley giants like Google, Facebook, Amazon and Apple. State and federal regulators have filed dozens of antitrust, consumer protection, privacy and trade lawsuits in an attempt to curb the business models or break up the companies. A Senate committee last week advanced potentially landmark antitrust legislation that tries to weaken the dominance of the internet giants.
Paul Merrell

Senate to mark up antitrust bills targeting Apple, Google and Amazon - 1 views

  • The Senate Judiciary Committee is set to deliberate on the American Innovation and Choice Online Act, which some experts consider to have the most realistic chance of becoming law out of broad slate of reforms, while creating major change in the industry. The committee schedule also lists a markup of the Open App Markets Act, another bipartisan competition bill.Both bills would prevent certain dominant tech platforms from favoring their own products or services over others that rely on their marketplaces to do business. But the Open App Markets Act’s impact would primarily be limited to those that run app stores, like Apple and Google, while the American Innovation and Choice Online Act would be more expansive, potentially preventing a company like Amazon from giving its own private label products a better ranking in its search than a third-party competitor.Apple and Google could similarly be barred from unfairly ranking their own apps above competitors’ in their mobile app stores, and for Google, the same principle would apply to its general search engine as well
Paul Merrell

'Major Win': Judge Says Suit to Break Up Facebook Empire Can Proceed - 0 views

  • A federal judge ruled Tuesday that the Federal Trade Commission's revised antitrust lawsuit against Meta Platforms, the parent company of Facebook, can move forward—a potentially significant blow to the social media empire, which sought to have the case dismissed.In an amended complaint filed last August, the FTC provided additional data and stronger details to back up its allegations that Facebook has maintained a monopoly on social networking services for the past decade by "illegally acquiring innovative competitors and burying successful app developers."U.S. District Judge James Boasberg—who in June dismissed the FTC's first antitrust complaint against Facebook, calling it "legally insufficient"—wrote in Tuesday's ruling that the evidence in the agency's second filing is "far more robust and detailed than before."
Paul Merrell

Google fined €500m by French competition authority - BBC News - 1 views

  • Google has been hit with a €500m (£427m) fine by France's competition authority for failing to negotiate "in good faith" with news organisations over the use of their content.The authority accused Google of not taking an order to do so seriously.Google told the BBC the decision "ignores our efforts to reach an agreement".The fine is the latest skirmish in a global copyright battle between tech firms and news organisations.Last year, the French competition authority ordered that Google must negotiate deals with news organisations to show extracts of articles in search results, news and other services.Google was fined because, in the authority's view, it failed to do this. In 2019, France became the first EU country to put a new Digital Copyright Directive into law. The law governed so-called "neighbouring rights" which are designed to compensate publishers and news agencies for the use of their material.As a result, Google decided it would not show content from EU publishers in France, on services like search and news, unless publishers agreed to let them do so free of charge.News organisations felt this was an abuse of Google's market power, and two organisations representing press publishers and Agence France-Presse (AFP) complained to the competition authority.
Paul Merrell

Ohio's attorney general wants Google to be declared a public utility. - The New York Times - 2 views

  • Ohio’s attorney general, Dave Yost, filed a lawsuit on Tuesday in pursuit of a novel effort to have Google declared a public utility and subject to government regulation.The lawsuit, which was filed in a Delaware County, Ohio court, seeks to use a law that’s over a century old to regulate Google by applying a legal designation historically used for railroads, electricity and the telephone to the search engine.“When you own the railroad or the electric company or the cellphone tower, you have to treat everyone the same and give everybody access,” Mr. Yost, a Republican, said in a statement. He added that Ohio was the first state to bring such a lawsuit against Google.If Google were declared a so-called common carrier like a utility company, it would prevent the company from prioritizing its own products, services and websites in search results.AdvertisementContinue reading the main storyGoogle said it had none of the attributes of a common carrier that usually provide a standardized service for a fee using public assets, such as rights of way.The “lawsuit would make Google Search results worse and make it harder for small businesses to connect directly with customers,” José Castañeda, a Google spokesman, said in a statement. “Ohioans simply don’t want the government to run Google like a gas or electric company. This lawsuit has no basis in fact or law and we’ll defend ourselves against it in court.”Though the Ohio lawsuit is a stretch, there is a long history of government control of certain kinds of companies, said Andrew Schwartzman, a senior fellow at the nonprofit Benton Institute for Broadband & Society. “Think of ‘The Canterbury Tales.’ Travelers needed a place to stay and eat on long road treks, and innkeepers were not allowed to deny them accommodations or rip them off,” he said.
  • After a series of federal lawsuits filed against Google last year, Ohio’s lawsuit is part of a next wave of state actions aimed at regulating and curtailing the power of Big Tech. Also on Tuesday, Colorado’s legislature passed a data privacy law that would allow consumers to opt out of data collection.On Monday, New York’s Senate passed antitrust legislation that would make it easier for plaintiffs to sue dominant platforms for abuse of power. After years of inaction in Congress with tech legislation, states are beginning to fill the regulatory vacuum.Editors’ PicksThe Abandoned Houses of Instagram21 Easy Summer Dinners You’ll Cook (or Throw Together) on Repeat‘King Richard’ Finds Fresh Drama in WatergateAdvertisementContinue reading the main storyAdvertisementContinue reading the main storyOhio was also one of 38 states that filed an antitrust lawsuit in December accusing Google of being a monopoly and using its dominant position in internet search to squeeze out smaller rivals.
Paul Merrell

House Committee Passes 'Big Tech' Antitrust Package Despite Lobbying Onslaught | ZeroHedge - 1 views

  • As the DoJ and FTC pursue civil antitrust litigation against some of America's largest tech firms, a House Committee has approved legislation to curb the market dominance of many of these same firms, including Google-owner Alphabet and Facebook. However, according to a report from WSJ, the tech firms targeted by the legislation are ramping up their lobbying efforts, precipitating a pitched battle over the legislation in the Senate.At the core of the six-bill raft of legislation is a measure to bar big tech firms from favoring their own products on their platforms. It was approved by the House committee early Thursday by a vote of 24 to 20.The NYT reported that Apple and other tech giants engaged in aggressive lobbying against the six-bill package, with Apple CEO Tim Cook going so far as to call Speaker Nancy Pelosi and other top lawmakers to warn them against supporting the legislation. Per the NYT, the calls from Cook were "part of a forceful and wide-ranging pushback by the tech industry since the proposals were announced this month. Executives, lobbyists, and more than a dozen think tanks and advocacy groups paid by tech companies have swarmed Capitol offices, called and emailed lawmakers and their staff members, and written letters arguing there will be dire consequences for the industry and the country if the ideas become law."
  • Mirroring the outcome of several EU anti-trust investigations, the legislation, known as the "American Choice and Innovation Online Act," the legislation would prohibit the owners of big platforms (like Amazon's online marketplace) from creating disadvantages for goods and services provided by competitors.
Paul Merrell

Facebook's Marketplace Faces Antitrust Probes in EU, U.K. - WSJ - 1 views

  • The European Union and the U.K. opened formal antitrust investigations into Facebook Inc.’s FB -0.86% classified-ads service Marketplace, ramping up regulatory scrutiny for the company in Europe. Both the European Commission—the EU’s top antitrust enforcer—and the U.K.’s Competition and Markets Authority said Friday they are investigating whether Facebook repurposes data it gathers from advertisers who buy ads in order to give illegal advantages to its own services, including its Marketplace online flea market. The U.K. added that it is also investigating whether Facebook uses advertiser data to give similar advantages to its online-dating service. The two competition watchdogs said they would coordinate their investigations.
  • Separately on Friday, Germany’s competition regulator announced that it is opening an investigation into Google’s News Showcase, in which the tech company pays to license certain content from news publishers. That probe, which is based on new powers Germany had granted the regulator, will look among other things at whether Google is imposing unfair conditions on publishers and how it selects participants, the Federal Cartel Office said.
  • The three newly opened cases are part of a new wave of antitrust enforcement in Europe. The European Commission filed formal charges last month against Apple Inc. for allegedly abusing its control over the distribution of music-streaming apps, including Spotify Technology SA . In November, it filed formal charges against Amazon.com Inc. for allegedly using nonpublic data it gathers from third-party sellers to unfairly compete against them. Both companies denied wrongdoing. At the same time, the U.K.’s CMA has opened investigations into Google’s announcement that it will retire third-party cookies, a technology advertisers use to track web users, and whether Apple imposes anticompetitive conditions on some app developers, including the use of Apple’s in-app payment system, which is also the subject of a lawsuit in the U.S. In the EU, the European Commission has been investigating Facebook for more than a year on multiple fronts. Facebook and the Commission have squabbled over access to internal documents as part of those investigations.
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  • New York State Attorney General Letitia James outlined in December a sweeping antitrust suit against Facebook by the Federal Trade Commission and a bipartisan group of 46 state attorneys general, targeting the company’s tactics against competitors. Photo: Saul Loeb/AFP via Getty Images (Video from 12/9/20)
Paul Merrell

Judge "Disturbed" To Learn Google Tracks 'Incognito' Users, Demands Answers | ZeroHedge - 1 views

  • A US District Judge in San Jose, California says she was "disturbed" over Google's data collection practices, after learning that the company still collects and uses data from users in its Chrome browser's so-called 'incognito' mode - and has demanded an explanation "about what exactly Google does," according to Bloomberg.
  • In a class-action lawsuit that describes the company's private browsing claims as a "ruse" - and "seeks $5,000 in damages for each of the millions of people whose privacy has been compromised since June of 2016," US District Judge Lucy Koh said she finds it "unusual" that the company would make the "extra effort" to gather user data if it doesn't actually use the information for targeted advertising or to build user profiles.Koh has a long history with the Alphabet Inc. subsidiary, previously forcing the Mountain View, California-based company to disclose its scanning of emails for the purposes of targeted advertising and profile building.In this case, Google is accused of relying on pieces of its code within websites that use its analytics and advertising services to scrape users’ supposedly private browsing history and send copies of it to Google’s servers. Google makes it seem like private browsing mode gives users more control of their data, Amanda Bonn, a lawyer representing users, told Koh. In reality, “Google is saying there’s basically very little you can do to prevent us from collecting your data, and that’s what you should assume we’re doing,” Bonn said.Andrew Schapiro, a lawyer for Google, argued the company’s privacy policy “expressly discloses” its practices. “The data collection at issue is disclosed,” he said.Another lawyer for Google, Stephen Broome, said website owners who contract with the company to use its analytics or other services are well aware of the data collection described in the suit. -Bloomberg
  • Koh isn't buying it - arguing that the company is effectively tricking users under the impression that their information is not being transmitted to the company."I want a declaration from Google on what information they’re collecting on users to the court’s website, and what that’s used for," Koh demanded.The case is Brown v. Google, 20-cv-03664, U.S. District Court, Northern District of California (San Jose), via Bloomberg.
animationusa

Benefits of 3D Medical Animation In the Healthcare Industry - 0 views

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    3D medical animation is playing a significant role in the healthcare industry. Many medical experts are getting the benefits that 3D medical animation can acquire in the areas of education, marketing, and patient communication.
Paul Merrell

EU unveils landmark law curbing power of tech giants | News | DW | 15.12.2020 - 0 views

  • The European Union unveiled landmark legislation on Tuesday that lays out strict rules for tech giants to do business in the bloc. The draft legislation, dubbed the Digital Services Act (DSA) and the Digital Markets Act (DMA), outlines specific regulations that seek to limit the power of global internet firms on the European market. Companies including Google, Apple, Amazon, Facebook and others could face hefty penalties for violating the rules. EU antitrust czar Margrethe Vestager and EU digital chief Thierry Breton presented the draft on Tuesday, after the content of the new rules was leaked to the media on Monday.
  • What's in the draft laws? The dual legislation sets out a list of do's, don'ts and penalties for internet giants: Companies with over 45 million EU users would be designated as digital "gatekeepers" — making them subject to stricter regulations. Firms could be fined up to 10% of their annual turnover for violating competition rules. The could also be required to sell one of their businesses or parts of it (including rights or brands). Platforms that refuse to comply and "endanger people's life and safety" could have their service temporarily suspended "as a last resort." Companies would need to inform the EU ahead of any planned mergers or acquisitions. Certain kinds of data must be shared with regulators and rivals. Companies favoring their own services could be outlawed. Platforms would be more responsible for illegal, disturbing or misleading content.
  • Following the announcement on Tuesday, US internet giant Google criticized the draft legislation, saying it appeared to target specific firms.  "We will carefully study the proposals made by the European Commission over the next few days. However, we are concerned that they seem to specifically target a handful of companies," said Karan Bhatia, the vice president of government affairs and public affairs at Google. Facebook appeared to offer a more conciliatory tone, saying the legislation was "on the right track."
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  • The draft still faces a long ratification process, including feedback from the EU's 27 member states and the European Parliament. Company lobbyists and trade associations will also influence the final law. The process is expected to take several months or even a year.
Paul Merrell

Press corner | European Commission - 0 views

  • The European Commission has informed Amazon of its preliminary view that it has breached EU antitrust rules by distorting competition in online retail markets. The Commission takes issue with Amazon systematically relying on non-public business data of independent sellers who sell on its marketplace, to the benefit of Amazon's own retail business, which directly competes with those third party sellers. The Commission also opened a second formal antitrust investigation into the possible preferential treatment of Amazon's own retail offers and those of marketplace sellers that use Amazon's logistics and delivery services. Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “We must ensure that dual role platforms with market power, such as Amazon, do not distort competition.  Data on the activity of third party sellers should not be used to the benefit of Amazon when it acts as a competitor to these sellers. The conditions of competition on the Amazon platform must also be fair.  Its rules should not artificially favour Amazon's own retail offers or advantage the offers of retailers using Amazon's logistics and delivery services. With e-commerce booming, and Amazon being the leading e-commerce platform, a fair and undistorted access to consumers online is important for all sellers.”
  • Amazon has a dual role as a platform: (i) it provides a marketplace where independent sellers can sell products directly to consumers; and (ii) it sells products as a retailer on the same marketplace, in competition with those sellers. As a marketplace service provider, Amazon has access to non-public business data of third party sellers such as the number of ordered and shipped units of products, the sellers' revenues on the marketplace, the number of visits to sellers' offers, data relating to shipping, to sellers' past performance, and other consumer claims on products, including the activated guarantees. The Commission's preliminary findings show that very large quantities of non-public seller data are available to employees of Amazon's retail business and flow directly into the automated systems of that business, which aggregate these data and use them to calibrate Amazon's retail offers and strategic business decisions to the detriment of the other marketplace sellers. For example, it allows Amazon to focus its offers in the best-selling products across product categories and to adjust its offers in view of non-public data of competing sellers. The Commission's preliminary view, outlined in its Statement of Objections, is that the use of non-public marketplace seller data allows Amazon to avoid the normal risks of retail competition and to leverage its dominance in the market for the provision of marketplace services in France and Germany- the biggest markets for Amazon in the EU. If confirmed, this would infringe Article 102 of the Treaty on the Functioning of the European Union (TFEU) that prohibits the abuse of a dominant market position.
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    "In addition, the Commission opened a second antitrust investigation into Amazon's business practices that might artificially favour its own retail offers and offers of marketplace sellers that use Amazon's logistics and delivery services (the so-called "fulfilment by Amazon or FBA sellers"). In particular, the Commission will investigate whether the criteria that Amazon sets to select the winner of the "Buy Box" and to enable sellers to offer products to Prime users, under Amazon's Prime loyalty programme, lead to preferential treatment of Amazon's retail business or of the sellers that use Amazon's logistics and delivery services. The "Buy Box" is displayed prominently on Amazon's websites and allows customers to add items from a specific retailer directly into their shopping carts. Winning the "Buy Box" (i.e. being chosen as the offer that features in this box) is crucial to marketplace sellers as the Buy Box prominently shows the offer of one single seller for a chosen product on Amazon's marketplaces, and generates the vast majority of all sales. The other aspect of the investigation focusses on the possibility for marketplace sellers to effectively reach Prime users. Reaching these consumers is important to sellers because the number of Prime users is continuously growing and because they tend to generate more sales on Amazon's marketplaces than non-Prime users. If proven, the practice under investigation may breach Article 102 of the Treaty on the Functioning of the European Union (TFEU) that prohibits the abuse of a dominant market position. The Commission will now carry out its in-depth investigation as a matter of priority"
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    On the filed charges, the violation seems to be fairly clear-cut and straightforward to prove. (DG Competition has really outstanding lawyers.) I suspect the real fight here will be over the remedy.
Paul Merrell

Dept. of Justice Accuses Google of Illegally Protecting Monopoly - The New York Times - 1 views

  • The Justice Department accused Google on Tuesday of illegally protecting its monopoly over search and search advertising, the government’s most significant challenge to a tech company’s market power in a generation and one that could reshape the way consumers use the internet.In a much-anticipated lawsuit, the agency accused Google of locking up deals with giant partners like Apple and throttling competition through exclusive business contracts and agreements.Google’s deals with Apple, mobile carriers and other handset makers to make its search engine the default option for users accounted for most of its dominant market share in search, the agency said, a figure that it put at around 80 percent.“For many years,” the agency said in its 57-page complaint, “Google has used anticompetitive tactics to maintain and extend its monopolies in the markets for general search services, search advertising and general search text advertising — the cornerstones of its empire.”The lawsuit, which may stretch on for years, could set off a cascade of other antitrust lawsuits from state attorneys general. About four dozen states and jurisdictions, including New York and Texas, have conducted parallel investigations and some of them are expected to bring separate complaints against the company’s grip on technology for online advertising. Eleven state attorneys general, all Republicans, signed on to support the federal lawsuit.
  • The Justice Department did not immediately put forward remedies, such as selling off parts of the company or unwinding business contracts, in the lawsuit. Such actions are typically pursued in later stages of a case.Ryan Shores, an associate deputy attorney general, said “nothing is off the table” in terms of remedies.
  • Democratic lawmakers on the House Judiciary Committee released a sprawling report on the tech giants two weeks ago, also accusing Google of controlling a monopoly over online search and the ads that come up when users enter a query.
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  • Google last faced serious scrutiny from an American antitrust regulator nearly a decade ago, when the Federal Trade Commission investigated whether it had abused its power over the search market. The agency’s staff recommended bringing charges against the company, according to a memo reported on by The Wall Street Journal. But the agency’s five commissioners voted in 2013 not to bring a case.Other governments have been more aggressive toward the big tech companies. The European Union has brought three antitrust cases against Google in recent years, focused on its search engine, advertising business and Android mobile operating system. Regulators in Britain and Australia are examining the digital advertising market, in inquiries that could ultimately implicate the company.“It’s the most newsworthy monopolization action brought by the government since the Microsoft case in the late ’90s,” said Bill Baer, a former chief of the Justice Department’s antitrust division. “It’s significant in that the government believes that a highly successful tech platform has engaged in conduct that maintains its monopoly power unlawfully, and as a result injures consumers and competition.”
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