The bill, which could even be announced today, could provide for the structural separation of Amazon and other large technology companies. Another bill, which may also be announced on Friday, targets the ability of large technology companies to take advantage of their own products over competitors by leveraging their online platforms.
The bills have also been signed by Republicans and Democrats, and more are expected to join as soon as they are announced, an insider told the WSJ.
The draft law on structural unbundling, reviewed by the WSJ, called the Platform Monopoly Abolition Act, states:
It is unlawful for the operator of a relevant platform to own or control a business line other than the relevant platform if the ownership or control of the relevant platform results in an irreconcilable conflict of interest over that business line.
According to Congress, the platform favors Amazon’s own merchandise to the detriment of sellers and also object to Amazon using third-party data to underpin its own-brand merchandise.
If the structural unbundling bill were passed, Amazon would have to split into two separate websites, two marketplaces, or stop selling its own products. Amazon’s own-brand marketplace has dozens of brands with 158,000 products. In addition, it is a market leader in devices such as Kindle eReaders, Amazon Echos, Fire TV streaming devices, Ring doorbells.
The bill must also be passed by the Democratic majority in the House of Representatives and the Senate, where significant Republican support is also likely to be needed for adoption.
A total of five bills are also ahead of U.S. MPs, one of which is aimed at reducing the market dominance of technology giants Apple, Facebook, Alphabet or Amazon. Other bills address issues such as data portability and the ability of large corporations to make anti-competitive acquisitions.
Most of the proposals focus only on large technology companies, targeting companies with at least $ 600 billion in market capitalization and more than 500,000 active monthly users. Currently, only four companies, Amazon, Apple, Facebook and Google, meet the parameters set out in the bills. Walmart, for example, operates an online marketplace and sells private label products, but has a market value of only $ 392 billion, so it would not be covered by any of the bills.
Amazon’s stock price is stagnant today, Apple’s stock price rose 0.8 percent, Facebook 0.7 percent and Alphabet 0.3 percent.
Cover image: Arif Hudaverdi Yaman / Anadolu Agency via Getty Images
Source: Portfolio.hu – Üzlet by www.portfolio.hu.
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