Market power remains largely concentrated in gateways to digital products. Think of operating systems (OS) like Macintosh and Windows for computers in the past, and iOS and Android for smartphones today. Because these Big Tech creations serve as the primary interface with technology, their control over users can be exploited.
Market power remains largely concentrated in gateways to digital products. Think of operating systems (OS) like Macintosh and Windows for computers in the past, and iOS and Android for smartphones today. Because these Big Tech creations serve as the primary interface with technology, their control over users can be exploited.
This week, a US court found Android owner Google guilty of abusing its dominance. The company has been sued by game maker Epic Games for being bullied by Google’s Play app store. Epic’s victory was a welcome one for Indian app developers, who are angry about unfair gateway fees imposed by the operating system (and app store) duopoly just to reach users. However, it wasn’t like breaking through the gates. The two big gateways remain, with Google and iOS owner Apple justifying the charges as necessary funds to keep their walled gardens of apps safe.
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This week, a US court found Android owner Google guilty of abusing its dominance. The company has been sued by game maker Epic Games for being bullied by Google’s Play app store. Epic’s victory was a welcome one for Indian app developers, who are angry about unfair gateway fees imposed by the operating system (and app store) duopoly just to reach users. However, it wasn’t like breaking through the gates. The two big gateways remain, with Google and iOS owner Apple justifying the charges as necessary funds to keep their walled gardens of apps safe.
Still, it was a sign that U.S. antitrust law was being updated for the information age. Abuse of monopoly power exhibits complex patterns in digital settings that are difficult to identify. However, when the market’s self-correcting measures fail, the state must respond. Indeed, AI bots may eventually replace today’s gatekeepers. However, abuses of power need to be corrected without delay.