Factbox: How Big Tech companies gain and maintain dominance

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.

The issue: Amazon.com Inc AMZN.O sells its own products as well as goods from independent merchants on a single platform.

The fix: The report recommends Congress consider removing the conflict by preventing dominant firms - in this case, Amazon - from competing with others dependent on its infrastructure. In response, Amazon said any legislative proposal to separate retail sales from its third-party marketplace would bring consumers and sellers back to a model they rejected as inconvenient.

Apple used that monopoly power to charge above-market prices to developers in the form of a 30% commission on App Store sales, to exclude rival apps and services and to misappropriate data from developers and use it to create competing services and features.

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 Apples ability to remove apps from its App Store that compete with its own services.

The issue: The panel found that Facebook holds monopoly power in the social networking market, which it distinguished from the market for more content-centric social media products like YouTube and TikTok.

The fix: The committee called for Congress to pass nondiscrimination and bargaining laws requiring big service providers such as Google to provide fair access to their systems. Such a rule could give a leg up to device makers, ad tech companies and app developers that want to shift from Google tools.

Original article
Author: Reuters Staff

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