On the way to reducing GAFA?

After a long study of GAFA’s competitive practices, a report from a subcommittee of the American Congress concludes that monopolies exist. This calls on the House of Representatives to review antitrust laws and advocate the segregation of certain activities.

The shadow of an antitrust twist hangs over Google, Apple, Facebook and Amazon. The famous GAFAs were put on the grill during an investigation by the US Congress’ Antitrust Subcommittee. It spent 16 months researching the competitive practices of technology giants and eventually produced a nearly 450-page report. The result is final, the GAFA are in a monopoly situation and have abused this position. “Companies that were once combative start-ups and rejected the status quo have become monopolies, like in the days of oil barons and railroad magnates,” the report said.

He adds, “These companies are too powerful and they need to be limited and properly regulated. Our economy and our democracy are at stake. “The subcommittee therefore proposes several remedial measures, in particular the dismantling of the GAFA. In addition, she suggests revising the antitrust laws so that companies can no longer get so big and powerful. In order to control the companies, the subcommittee believes that larger budgets are allocated to the FTC (Federal Trade Commission) and the Justice Department’s antitrust division. During an election period, these recommendations are not shared by the entire political class. Many elected Republicans thought the funds were too harsh.

GAFA under the microscope of anti-competitive practices

But what are we showing the various companies in detail? Amazon is accused of dominating the e-commerce market and collecting consumer data to bolster its position. An analysis not shared by the main interested party who posted it on a blog. “Misguided interference with the freedom of trade would kill small independent traders and punish consumers by raising prices and reducing their choice.” The company also believes that “downgrading Amazon would endanger the jobs of 2.3 million sellers.” For its part, Google is accused of monopolizing the online search market. 81% of searches on PCs and 94% on mobile are made through Google. According to the report, it acts as a “guard”, ie as a necessary passage for any research. Mountain View does not subscribe to this market analysis and the listed legal remedies. “The purpose of antitrust law is to protect consumers, not to help competitors,” said Google. “We disagree with today’s report, which contains outdated and inaccurate claims made by business competitors regarding search and other services.”

Apple excels in controlling applications installed on iOS devices and giving preference to its own applications over third-party applications (with a 30% retrocession of rights). The report also examined the suspicion of preferring Apple apps in search results. As we can imagine, the Cupertino company has failed to appreciate the subcommittee’s analysis and is planning to produce its own report to refute the various allegations. Finally, the report ends on Facebook, indicating that the company’s dominance on social media is “ingrained”. Mark Zuckerberg has been accused of arbitrarily centralizing personal data in order to use it and dominate the online advertising market, or to buy competing companies and then kill them. She didn’t respond to his allegations.