Amazon, Facebook, Google and the question of trust – Mumbai Mirror

In the season of Secret Santa, and last-minute Christmas shopping or new years gifts, the option of shopping with e-commerce is a godsend. And Amazon is the god of e-commerce in the world outside of China. It has overnight delivery; you almost always get what you are looking for; and the prices are low to the point of being unbelievable. The user interface, even on a tiny mobile screen, is a pleasant experience, and it even nudges you with suggestions to buy other stuff. With wide choices, low prices, overnight home delivery, quality assured, and an easy returns and refunds policy, its a customers delight. So what could go wrong?

Well, it looks like the tech giant is running into rough weather with anti-trust regulators all across the world. Last month, the European Commission issued a charge sheet that Amazon was abusing its dominance, and using its muscle to hurt small businesses. Specifically that it uses huge amounts of data generated by transactions on its platform to kill competitors. The European authorities are also investigating whether Amazons algorithms do product placement unfairly. In other words, when you are searching for a toaster, or a frying pan, it displays those vendors on top who have paid extra, giving them an unfair advantage. Of course, Amazon has denied the charges. It claims that it has, in fact, helped small businesses to sell to a wide customer base, by providing the e-commerce platform.

Jeff Bezoz, Mark Zuckerberg and Sundar Pichai

Not only does Amazon have immense data on buyer behaviour and preferences -- which it can use against the very merchants who sell on it -- but it can also act as a gatekeeper, choosing who can or cannot sell their wares on its platform. This is the potential for monopolistic power and its abuse.

It is this gatekeeper role of not just Amazon, but also Facebook, Google and Apple, which are under scrutiny by the European competition regulator. All of these companies act as marketplaces, and have their own, non-transparent rules, about who gets entry and who does not, thereby effectively abusing their power over millions of vendors. A US anti-trust watchdog, too, is pursuing its own investigation. At least 10 states in the US have filed charges against Facebook and Google about their anti competitive and collusive practices over the space they allocate and charge for advertising. As such Google commands two-thirds of its global revenues from advertising, long having eclipsed the revenues of television and newspapers. Events like Facebook Live or those on Twitter make them de facto broadcasters with virtually very little regulation of content, unlike those who are conventional, licensed broadcasters.

Facebook has already faced accusations of regulating content that can infringe on free speech, of being too cozy with governments and facilitating undue and unfair influence on elections. The electoral spending via Facebook and other social media is not subject to the same spotlight and scrutiny as that of conventional lobby groups.

Facebook, Apple, Google, Amazon

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Amazon, Facebook, Google and the question of trust - Mumbai Mirror