You are here

Amazon

Why US Antitrust Non-Enforcement Produces Online Winner-Take-All Platforms

If one considers the evidence, it is evident that U.S. antitrust enforcers have enabled the current “new normal” of online winner-take-all platforms: Alphabet-Google in e-information, Amazon in e-commerce, Facebook in e-social, Uber in e-transportation services, Airbnb in e-accommodation services, and a “unicorn” queue of online winner-take-all platform wannabes.

Summary of Conclusions

U.S. antitrust officials should be alarmed by the extreme early concentration of a relatively young twenty-year old, U.S. online company marketplace.

Five online winner-take-all platforms -- Google, Amazon, Facebook, Uber and Airbnb -- already command ~80% of U.S. online companies’ revenue share and market capitalization.

And they are collectively capturing 82% of U.S. online companies’ revenue growth share, meaning they are growing more dominant not less.

Why Amazon Buying WholeFoods Will Attract Serious Antitrust Scrutiny

In proposing to buy WholeFoods for $14b, Amazon has surprisingly invited unwelcome serious antitrust investigation into, and public discussion about, Amazon’s core conflicted retail/MarketPlace business model and the many alleged predatory, discriminatory, and unfair standard Amazon business practices, that Amazon commits, not only in the grocery business segment, but in all other retail segments.

In statingthe parties expect to close the transaction in the second half of 2017,” that means Amazon expects no serious antitrust investigation of whether the transaction “substantially lessens competition,” and thus no “second request” from antitrust authorities requesting more information and questions to answer.

If a “second request” comes, which is likely, there is no way the companies can continue to “expect” the deal will be approved in 2017. That’s because such an investigative process effectively does not have any deadline for the reviewing authority, DOJ or the FTC, to either: approve, approved with conditions, or challenge the deal.

The Internet Association Proves Extreme U.S. Internet Market Concentration

Those who think the U.S. Internet market is competitive, and not extremely concentrated, need to read on.

In a nutshell, for the first time, publicly available evidence shows that the cumulative effect of well-known “winner-take-all” platforms (WTAPs) Google, Amazon, Facebook, and Microsoft, is a “four-winners-take-all Internet sector.” Four different dominant platforms collectively command ~80% of overall Internet market share in revenues, new absolute annual revenues generated, market capitalization, and employees.

Imagine if the 94% of the economy that is offline-based, were as extremely concentrated as the 6% of the economy that is online-based/the Internet sector, per the Internet Association.

That would be an offline economy with basically one information company, one sharing company, one retailer, and one business software company, that collectively commanded 80% revenue share of the 94% of the economy that is offline based with ~4,000 publicly traded companies.

NetCompetition: Broadband Utility Regulation Proponents’ Hypocritical Focus

FOR IMMEDIATE RELEASE, May 18, 2017, Contact:  Scott Cleland 703-217-2407

 

What’s Wrong with This Picture? Pressure Groups and their Netopolies-Funders: Google, Facebook and Amazon, Hypocritically Demand Utility Regulation of Competitive Broadband ISPs to Prevent Commercial Discrimination or Blocking When the Netopolies are the Actual De Facto Utilities that Discriminate and Block as a Key Part their Business Models  

 

WASHINGTON D.C. – The following may be attributed to Scott Cleland, Chairman of NetCompetition:  

 

“Title II broadband regulation proponents sacrifice their credibility when they claim competitive companies are monopolies that require the strongest possible utility regulation, while simultaneously claiming Internet monopolies like Google, Facebook and Amazon, are competitive companies that should have no regulation at all.”

 

 

HBO’s John Oliver needs a 'net neutrality' reality check – The Hill Op-ed

 

Please don’t miss my latest The Hill Op-ed: “HBO’s John Oliver needs a 'net neutrality' reality check.”

 

Internet giants, not broadband providers, are the top threat to consumers – The Hill Op-ed

Please don’t miss my latest The Hill Op-ed: “Internet giants, not broadband providers, are the top threat to consumers”.

 

 

Why Title II Net Neutrality Directly Conflicts with Consumer Privacy

At best the notions of net neutrality and consumer privacy are somewhat in tension.

At worst, they are in opposition, and harm consumer privacy as happened when the Wheeler-FCC subordinated the goal of what’s best for consumer privacy to the conflicting and overriding goal of what was best for imposing maximal, Title II net neutrality.

Net neutrality and consumer privacy are in tension because they are very different concepts, priorities, and approaches for the handling of information online.

However, the original tension between the FCC’s first concept of net neutrality and consumer privacy was very limited because the Martin-FCC’s 2005 Internet Policy Statement on net neutrality was an extension of the Powell-FCC’s “Internet Freedoms” concept of net neutrality, and both approaches were consumer-first, i.e. very clearly centered around what consumers could expect from the Internet.

What thrust them into the more opposing concepts that they are today?

It was when net neutrality flipped from being primarily a consumer-centric principle to an edge-provider centric principle defined by Google, Amazon, Facebook and Netflix; and from the enforcement of a general broadband nondiscrimination principle, to the preemptive imposition of “the strongest possible,” specific, utility rate regulation framework – i.e. Title II of the 1934 Communications Act -- on a competitive industry that had done nothing wrong to warrant it.

On PBS NewsHour Gigi Sohn & I Discuss End of FCC Broadband Privacy Order

Please see PBS NewsHour’s five minute segment here with Gigi Sohn and I discussing Congress’ rescission of the FCC’s unimplemented broadband privacy order that the Wheeler-FCC majority passed last October by a 3-2 vote.

Congress right to save consumers from net neutrality privacy rules The Hill Op-ed

 

Please see my latest The Hill op-ed: “Congress was right to save consumers from privacy rules imposed under net neutrality.”

Consumer privacy has been the biggest loser from net neutrality proponents’ politicization of privacy.

FCC Chair Pai Shows the Mobile World Congress He’s the Un-Wheeler

New Trump FCC Chair Ajit Pai’s keynote speech on “Building the 5G Economy” at the Mobile World Congress in Barcelona today spotlighted to the communications world that the U.S. FCC is going in a very different policy direction than that of the previous FCC Chairman Tom Wheeler, who just happens to be speaking at the same event as a private citizen to a break-out session on “The Fourth Industrial Revolution.”

The fact that they are both at the largest communications event in the world delivering starkly divergent messages and visions, on the same day, provides an instructive and illuminating opportunity to juxtapose their contrasting policy approaches.

Pages

Q&A One Pager Debunking Net Neutrality Myths