By Reuters | Updated: 9 December 2021
Italy’s antitrust watchdog said it had fined Amazon EUR 1.13 billion (roughly Rs. 9,700 crore) for alleged abuse of market dominance, in one of the biggest penalties imposed on a US tech giant in Europe.
Amazon said it “strongly disagreed” with the Italian regulator’s decision and would appeal.
Global regulatory scrutiny of tech giants has been increasing after a string of scandals over privacy and misinformation, as well as complaints from some businesses that they abuse their market power.
As well as Amazon, Alphabet’s Google, Facebook, Apple, and Microsoft have drawn heightened scrutiny in Europe.
Italy’s watchdog said in a statement that Amazon had leveraged its dominant position in the Italian market for intermediation services on marketplaces to favour the adoption of its own logistics service – Fulfilment by Amazon (FBA) – by sellers active on Amazon.it.
The authority said Amazon tied to the use of FBA access to a set of exclusive benefits, including the Prime label, that help increase visibility and boost sales on Amazon.it.
“Amazon prevents third-party sellers from associating the Prime label with offers not managed with FBA,” it said.
The Prime label makes it easier to sell to the more than 7 million most loyal and high-spending consumers members of Amazon’s loyalty program.
The antitrust authority also said it would impose corrective steps that will be subject to review by a monitoring trustee.
Amazon said FBA “is a completely optional service” and that the majority of third-party sellers on Amazon do not use it.
“When sellers choose FBA, they do so because it is efficient, convenient and competitive in terms of price”, the US group said in a statement.
“The proposed fine and remedies are unjustified and disproportionate”, it added.
The EU Commission said it had cooperated closely with the Italian competition authority on the case, within the framework of the European Competition Network, to ensure consistency with its two own ongoing investigations into Amazon’s business practices.
The first was opened in July 2019 to assess whether Amazon’s use of sensitive data from independent retailers who sell on its marketplace was in breach of EU competition rules.
The second, in late 2020, focussed on the possible preferential treatment of Amazon’s own retail offers and those of marketplace sellers that use Amazon’s logistics and delivery services.
“This investigation complements today’s decision of the Italian competition authority which addresses Amazon’s conduct in the Italian logistics markets,” the Commission said on Thursday.
© Thomson Reuters 2021
Apple Complies With Dutch Watchdog Ruling on Dating App Payment Options
By Reuters | Updated: 17 January 2022
Apple said on Saturday it would allow developers of dating apps in the Netherlands to offer non-Apple payment options to their users, complying with an order from the country’s market regulator to do so by January 15 or face fines.
The country’s Authority for Consumers and Markets found in a decision published on December 24 that Apple had abused its market position by requiring dating app developers, including Tinder owner Match Group, to exclusively use Apple’s in-app payment system.
Apple’s practice of requiring developers to use its system and pay commissions of 15-30 percent on digital goods purchases has come under scrutiny from regulators and lawmakers around the world, but the Dutch ruling applies only in the Netherlands and only for dating apps.
In a post on its developers’ blog on Saturday, Apple said it would comply with the decision and introduce “two optional new entitlements exclusively applicable to dating apps on the Netherlands App Store that provide additional payment processing options for users”.
However it noted that developers were not required to use the non-Apple tools, and warned that Apple would not be able to help with safety or refunds of payments that take place outside its systems because it will “not be directly aware of them”.
Apple is appealing the Dutch decision.
© Thomson Reuters 2022
Netflix Raises Monthly Subscription Prices in US, Canada
By Reuters | Updated: 15 January 2022
Netflix has raised its monthly subscription price by $1 to $2 (roughly Rs. 75 to Rs. 150) per month in the United States depending on the plan, the company said on Friday, to help pay for new programming to compete in the crowded streaming TV market.
The standard plan, which allows for two simultaneous streams, now costs $15.49 (roughly Rs. 1,100) per month, up from $13.99(roughly Rs. 1,000), in the United States.
Prices also went up in Canada, where the standard plan climbed to CAD 16.49 (roughly Rs. 970) from CAD 14.99 (roughly Rs. 880).
The price increases, the first in those markets since October 2020, took effect immediately for new customers. Existing members will see the new prices in the coming weeks when they receive their monthly bills. The price increases have not been previously reported.
“We understand people have more entertainment choices than ever and we’re committed to delivering an even better experience for our members,” a Netflix spokesperson said.
“We’re updating our prices so that we can continue to offer a wide variety of quality entertainment options. As always we offer a range of plans so members can pick a price that works for their budget,” the spokesperson added.
The world’s largest streaming service is facing the most competition ever from companies looking to attract viewers to online entertainment. Walt Disney, AT&T’s WarnerMedia, Amazon and Apple are among the rivals pouring billions into new programming.
Netflix had said it would spend $17 billion (126457.05 crore) on programming in 2021. The company has not disclosed spending for 2022.
The US price of Netflix’s premium plan, which enables four streams at a time and streaming in ultra HD, was increased by $2 to $19.99 (roughly Rs. 140 to Rs. 1400) per month. For Netflix’s basic plan, with one stream, the cost rose by $1 to $9.99 (roughly Rs. 74 to Rs. 740) per month.
In Canada, the premium plan rose by CAD 2 to CAD 20.99 (roughly Rs. 118 to Rs. 1,200), and the basic plan was unchanged at CAD 9.99 (roughly Rs. 600).
The United States and Canada are Netflix’s largest region with 74 million customers as of September 2021. Most of the company’s recent growth has come from overseas.
Netflix’s subscriber growth slowed from a boom early in the COVID-19 pandemic but rebounded with help from global phenomenon Squid Game, a dystopian thriller from South Korea released in September. Total global subscriptions reached 213.6 million.
The company’s next subscriber report is due Thursday when Netflix posts quarterly earnings. Analysts project the company will report 8.5 million new sign-ups from October through December, according to Thomson Reuters I/B/E/S data, bringing its global subscriber base to 222 million.
Google, Facebook CEOs Colluded in Online Advertisement Sales, Lawsuit Alleges
By Associated Press | Updated: 15 January 2022
Newly unredacted documents from a state-led antitrust lawsuit against Google accuse the search giant of colluding with rival Facebook to manipulate online advertising sales. The CEOs of both companies were aware of the deal and signed off on it, the lawsuit alleges.
The original, redacted lawsuit, filed in December 2021, accused Google of “anti-competitive conduct” and of teaming up with the social networking giant. But the unredacted version offers details on the involvement of Alphabet CEO Sundar Pichai and Facebook CEO Mark Zuckerberg in approving the deal. Facebook has since renamed itself Meta.
According to the lawsuit, Facebook’s Chief Operating Officer, Sheryl Sandberg, was “explicit that ‘this is a big deal strategically'” in a 2018 email thread about the deal that included Facebook’s CEO. While the names of the Facebook executives are still redacted in the suit, their titles are visible.
When the two sides hammered out the terms of the agreement, “the team sent an email addressed directly to CEO” Zuckerberg, the lawsuit states.
“We’re nearly ready to sign and need your approval to move forward,” the email read, according to the complaint. Zuckerberg wanted to meet with Sandberg and his other executives before making a decision, the complaint states.
In a statement, Google spokesperson Peter Schottenfels said the lawsuit is “full of inaccuracies and lacks legal merit.”
In September 2018, the complaint says, the two companies signed the agreement. Sandberg, who was once the head of Google’s ad business, and Pichai personally signed off on the deal, per the states’ complaint.
Meta spokesperson Chris Sgro said Friday that the company’s ad bidding agreement with Google and similar agreements it has with other bidding platforms “have helped to increase competition for ad placements.”
“These business relationships enable Meta to deliver more value to advertisers while fairly compensating publishers, resulting in better outcomes for all,” Sgro said.
Internally, Google used the code phrase “Jedi Blue” to refer to the 2018 agreement, according to the lawsuit. Google kept this code phrase secret.
Google’s Schottenfels said the lawsuit’s allegation that Pichai approved the deal with Facebook “isn’t accurate.”
“We sign hundreds of agreements every year that don’t require CEO approval, and this was no different,” he said, adding that the agreement “was never a secret.”
The lawsuit is led by Texas Attorney General Ken Paxton and was joined by the attorneys general of Alaska, Arkansas, Florida, Idaho, Indiana, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nevada, North Dakota, Puerto Rico, South Carolina, South Dakota and Utah.
Amazon Warehouse Workers in Alabama to Hold Union Vote, Counting to Begin on March 28
By Reuters | Updated: 12 January 2022
The US National Labor Relations Board said on Tuesday that it will send unionisation ballots to workers at an Amazon warehouse in Bessemer, Alabama, on February 4, setting the stage for the next labour contest facing the online retailer.
Votes in the mail-ballot election, which is a re-run after the NLRB found Amazon interfered last year, will be counted starting on March 28, according to a notice published by the NLRB. The Retail, Wholesale and Department Store Union (RWDSU) has been seeking to represent the workers.
Scrutiny of working conditions at Amazon has intensified in recent months, with some employees seeking to organise at facilities in New York and Canada. A victory at even one warehouse would be a milestone that labour experts say could invigorate the US labour movement.
In a statement, Amazon spokeswoman Barbara Agrait said, “Our employees have always had the choice of whether or not to join a union, and they overwhelmingly chose not to join the RWDSU last year. We look forward to our team in (the warehouse) having their voices heard again.”
In last year’s count, workers at the Bessemer warehouse rejected forming a union by a more than 2-to-1 margin. The organising drive had garnered support from US lawmakers and President Joe Biden.
Then in August, an NLRB hearing officer determined the company had interfered with the vote. As example, the officer said workers may have felt they were being surveilled when dropping ballots in a mailbox on Amazon’s property that the company encouraged them to use. Amazon also put a campaign slogan around the mailbox. An NLRB regional director, Lisa Henderson, officially called for a re-run in November.
In an order accompanying Tuesday’s election notice from the NLRB, Henderson said that the same mailbox would be in a “neutral location” on Amazon’s property for the forthcoming vote and that no party could put a banner around it or issue a directive on its use.
The RWDSU said it was still worried about Amazon “continuing its objectionable behaviour in a new election”. It said it was especially concerned that same mailbox will remain on Amazon’s property for voting, which it believes will create an impression of surveillance that undermines a free and fair election.
Facebook-Parent Meta’s Antitrust Dismissal Request Shut Down, US Judge Says Case Can Proceed
By Associate Press | Updated: 12 January 2022
A federal judge has ruled that the Federal Trade Commission’s revised antitrust suit against Meta, formerly known as Facebook, can proceed, shutting down the social media company’s request for a dismissal. In a revised complaint filed last August, the FTC argues that the company pursued a “buy or bury” strategy against rivals to suppress competition.
This is the FTC’s second antitrust run at the company. A federal judge in June dismissed antitrust lawsuits brought against Facebook by the agency and a broad coalition of state attorneys general that were among multiplying efforts by federal and state regulators to rein in tech titans’ market power.
The FTC is seeking remedies that could include a forced spinoff of Facebook’s popular Instagram and WhatsApp messaging services, or a restructuring of the company.
US District Judge James Boasberg, who in June ruled that the FTC’s original lawsuit was “legally insufficient” and didn’t provide enough evidence to prove that Facebook was a monopoly, said in Tuesday’s ruling that the first complaint “stumbled out of the starting blocks.”
But he added that, though the “core theory” of the lawsuit — that Facebook is a monopoly engaging in anticompetitive behaviour — remains unchanged, the facts alleged this time around are “far more robust and detailed than before.”
Meta said in an emailed statement it is “confident the evidence will reveal the fundamental weakness of the claims.”
“Our investments in Instagram and WhatsApp transformed them into what they are today,” the company said. “They have been good for competition, and good for the people and businesses that choose to use our products.”
Holly Vedova, director of the FTC’s bureau of competition, said the agency presented a “strong amended complaint a strong amended complaint, and we look forward to trial.”
Electronic Entertainment Expo, E3, CES, CES 2022
By Reuters | Updated: 7 January 2022
China’s copyright authority said on Thursday digital music platforms are not allowed to sign exclusive copyright agreements except in special circumstances, amid a regulatory crackdown on monopolistic behaviour in the country’s private sector.
The National Copyright Administration of China (NCAC) gave the order on Thursday at a meeting in Beijing with influential digital music platforms, as well as record and songwriting copyright companies, according to a statement published on the NCAC’s official WeChat account.
The order comes amid a widening crackdown by Chinese regulators on the country’s technology sector, which has focused on issues such as monopolistic behaviour, unfair competition and consumer rights..
Last year, Tencent Holdings announced it had ended all exclusive music copyright agreements after it was ordered by China’s market regulator to do so. The regulator had said the firm held more than 80 percent of exclusive music library resources which increased its leverage over upstream copyright parties and allowed it to restrict new entrants.
The NCAC did not mention which companies were called in on Thursday. Besides Tencent, smartphone maker Xiaomi, telecommunications provider China Mobile, and Internet tech giant Netease all own popular streaming services in China. Globally popular streaming services like Spotify are banned in mainland China.
The NCAC said that while copyright practices had improved since 2015, when the authority banned unlicensed music streaming and ordered platforms to remove millions of songs, the industry still needed to be further standardised.
“The talks emphasised that record companies, songwriting copyright companies and digital music platforms should … settle payment according to a guaranteed sum plus a share of actual usage, and should not sign exclusive copyright agreements except under special circumstances,” it said.
© Thomson Reuters 2022
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