Lauren: The EU has given Google a $2.7 billion fine due to alleged antitrust violations. According to EU antitrust regulators, the internet giant is a monopoly. And so Google now has to prove that it has rivals that had made substantial inroads to its businesses, including specialized search categories, mobile phones, and online ad buying. This fine and punishment could also set a precedent for other tech giants. Seems like they're not as unstoppable as many have believed.
Jane: It would set a precedent in Europe. Google has been doing that here forever. But the application of antitrust laws to tech companies interesting. Amazon, Google, Apple, and etc. easily outpace other smaller companies and since they dominate the newer, harder to regulate marketplaces, there is a lack of checks and balances in place
L: The law is definitely slow to catch up in this area. It feels like the second a new law addressing internet companies or online privacy passes, things are updated into something new that needs a whole new framework of regulations. The pace of advancement in technology and regulations just don't match up. Because of this, so much of what is done online is in a legal gray area. That's why it's interesting that Europe is attacking the problem using antitrust law. Those laws are pretty old, but are working in the context of the 21st century.
It feels like the second a new law addressing internet companies or online privacy passes, things are updated into something new that needs a whole new framework of regulations
J: The concept is still the same. Make sure the market is in favor of the consumer. Limiting competition does the exact opposite. Manipulating search results when Google is the primary search engine is shady.
L: This also shows how much the digital world can affect the real one. If you can't Google a business, it might as well not exist. When you think about it, Google has immense power over our lives. So does Facebook or Amazon. These websites and companies are deeply ingrained in our daily lives and our economy.
J: Amazon is trying to be the one-stop shop for everything. They've been trying to get into the grocery business for a long time and buying Whole Foods would cement them in the industry. It could be very successful or they can run the grocery story to the ground since Amazon's model is vastly different from Whole Foods.
L: I think Amazon might use Whole Foods as a testing ground for their new grocery shopping concept Amazon Go. That will be a huge change for the industry.
J: It would definitely blur industry lines even more but Amazon has a history of doing that anyway. Bezos purchased the Washington Post a few years ago. In Whole Foods case, prices might possibly go down. But you never know. There's a lot of unknown as tech companies melded and absorb other traditional companies.