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."
Chris Williamson, Chief Business Economist at S&P Global, breaks down September’s CPI print and inflation trends, explaining what it means for markets.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
