Amazon might be celebrating 25 years since its founding, but British regulators have no interest in gifting the trillion-dollar company a break for its birthday. Instead, the government is pressing the pause button on Amazon's delivery business in the UK, signaling growing concern with the e-commerce giant's ever-expanding size.
Mark Douglas, the CEO and founder of the tech advertising firm Steelhouse, told Cheddar Friday that growing interest in regulating the company is "part of the larger theme that a lot of folks are just very concerned about the size of Amazon, of Facebook, and all these other large companies in tech."
This week, the UK's Competition and Markets Authority, a government department charged with ensuring business competition, ordered Amazon to pause its investment in Deliveroo, a widely-popular British restaurant delivery service. Deliveroo has raised $1.5 billion since 2012 and boasted a reported 45,000 average daily users last year.
In an enforcement order, the department said that the investment could mean that Amazon and Roofoods Ltd. ー which trades as Deliveroo ー are left "ceasing to be distinct." The regulators want time to investigate whether the blurring of the lines violates the country's Enterprise Act, a 2002 law that regulates competition.
As tech giants increasingly close in on trillion-dollar valuations, governments will become more interested in slowing their expansion. "We've been used to operating without rules, without regulation," Douglas said.
However, he emphasized that just because the UK is looking into antitrust concerns, it may not mean much for Americans, as the U.S. has long differed in its approach to antitrust issues.
"In the U.S., the consumer has to be harmed," he said, arguing that "every time Amazon enters a market, basically, prices go down and everything becomes more convenient for consumers."
One key antitrust issue that will arise for tech platforms will be how their dominance ー and the cost of appearing on their platforms ー impacts smaller manufacturers and businesses.
"It's essentially a tax on all retail sales," Douglas explained. "Unless you know exactly what you want to buy ー and [are] going straight to that site ー in some way, the cost of getting there is going to be baked into the costs of those products."
Earlier this week, the Retail Industry Leaders Association — which represents major chains like Walmart and Target — sent a letter to the Federal Trade Commission pushing the agency to investigate major technology companies for anti-competitive behavior.
"For the consumer, it just keeps going back to choice. Is going through Amazon a requirement for a young company with a new product to flourish?" said Douglas. "Is there any way for companies to reach the consumer without going through these big tech giants."
"And right now — quite frankly — there really isn't. Between marketing on Instagram to find the consumer, or Google, or listing on Amazon, there's really not many ways to reach the consumer other than going through these companies."
Orangetheory Fitness is redefining the future of workouts with smarter tech, strength-based programming, and community-driven studios built for what’s next.
Spain's government has fined Airbnb 64 million euros or $75 million for advertising unlicensed tourist rentals. The consumer rights ministry announced the fine on Monday. The ministry stated that many listings lacked proper license numbers or included incorrect information. The move is part of Spain's ongoing efforts to regulate short-term rental companies amid a housing affordability crisis especially in popular urban areas. The ministry ordered Airbnb in May to remove around 65,000 listings for similar violations. The government's consumer rights minister emphasized the impact on families struggling with housing. Airbnb said it plans to challenge the fine in court.
Roomba maker iRobot has filed for Chapter 11 bankruptcy protection, but says that it doesn’t expect any disruptions to devices as the more than 30-year-old company is taken private under a restructuring process. iRobot said that it is being acquired by Picea through a court-supervised process. Picea is the company's primary contract manufacturer. The Bedford, Massachusetts-based anticipates completing the prepackaged chapter 11 process by February.
Serbia’s prosecutor for organized crime has charged a government minister and three others with abuse of position and falsifying of documents related to a luxury real estate project linked to U.S. President Donald Trump’s son-in-law Jared Kushner. The charges came on Monday. The investigation centers on a controversy over a a bombed-out military complex in central Belgrade that was a protected cultural heritage zone but that is facing redevelopment as a luxury compound by a company linked to Kushner. The $500 million proposal to build a high-rise hotel, offices and shops at the site has met fierce opposition from experts at home and abroad. Selakovic and others allegedly illegally lifted the protection status for the site by falsifying documentation.
Wealthfront’s CFO Alan Iberman talks the $2.05B IPO and the major moment for robo banking as the company bets on AI, automation, and “self-driving money."
A rare magnum of Dom Pérignon Vintage 1961 champagne that was specially produced for the 1981 wedding of Prince Charles and Lady Diana has failed to sell during an auction. Danish auction house Bruun Rasmussen handled the bidding Thursday. The auction's house website lists the bottle as not sold. It was expected to fetch up to around $93,000. It is one of 12 bottles made to celebrate the royal wedding. Little was revealed about the seller. The auction house says the bids did not receive the desired minimum price.
