Posts Tagged: "Amazon.com"

Are Today’s Social Media Tech Giants the Big Brother that Orwell Warned Us About?

Dystopian novels and science fiction often return to the subject of the loss of personal privacy which is often encouraged by the use of technology enabling constant, omnipresent surveillance. Perhaps the most famous example of this in the science fiction canon of the 20th century is George Orwell’s Nineteen Eighty-Four. First published in 1949, Orwell’s novel conceives of a world where government surveillance is so complete that the vast majority of citizens don’t mind being watched by two-way telescreens in their own apartments. Even the novel’s rebellious protagonist Winston Smith comes around at the end to fall prey to the same cult of personality that allows the government overseer — Big Brother — to remain in power… With concerns over the use of personal data fresh in the mainstream news, we’ll run a series of articles that will take a closer look at U.S. tech giants both in terms of the types of data they track and the purposes for which that data is used.

Tech Giants Maintain Dominance By Copying Technologies

Although it’s not illegal to earn a profit, unfair business practices in the pursuit of holding a monopoly over an entire industry led to the breakup of Standard Oil, especially the rebates from railroad companies for oil shipments which substantially lowered Standard Oil’s transportation costs relative to its much smaller competitors. Recent academic research has suggested that, while the U.S. government acted appropriately to stop the cartelization of an industry, Standard Oil was engaging in typical capitalist activity in securing better deals which optimized oil shipments. This would seem somewhat less nefarious than an outright copying technologies from smaller competitors in an effort to stave off competition.

U.S. Customs Reports a Record Number of Counterfeit Shipments Seized During 2017

the U.S. Customs and Border Protection (CBP) announced that it, along with U.S. Immigration and Customs Enforcement (ICE), had seized a record number of counterfeit and pirated products which violated intellectual property rights last year. Collectively, CBP and ICE seized a total of 34,143 shipments of goods during 2017’s fiscal year, an increase of 8 percent over the total number of counterfeit shipments seized during 2016. About 90 percent of the shipments seized were in the express carrier and international mail environments. According to the law enforcement agencies, the total estimated manufacturers’ suggested retail price (MSRP) for the genuine versions of those good reached $1.2 billion.

Does an Uncertain Patentability Climate Explain the Stormy Environment for IPOs?

If Snap cannot protect its ability to differentiate its platform, how is it going to compete with a rival that has more resources and a larger base of distribution? If Facebook and Snap compete on user experience, and that experience is essentially the same between both, there’s no way for Snap, the smaller player, to gain any sort of competitive advantage… An analysis of U.S. capital markets published last May by Ernst & Young noted that the decline of IPO activity over the past 20 years has been so significant that it has warranted conversations on policy action to reverse the trend. A restoration of patent rights, which gives a patent owner a reasonable ability to obtain and enforce patents, could very well have the positive impact desired to improve the business climate for IPOs.

Tech Super Giants Maintain Standard Oil Sized Monopolies

Between 1882 and 1906, this market dominance reportedly brought Standard Oil a total of $838,783,800 in net income. On an annual basis, that would mean that Standard Oil earned nearly $35 million in net income each year, which equals approximately $969 million in 2017 dollars when adjusted for inflation… To some of the tech super giants of today, $1 billion in profits is nothing more than pocket change… If Standard Oil remains the benchmark for what it means to be a monopoly, which many believe it does, it is difficult to understand why U.S. Antitrust regulators are not at least asking very serious questions about the market dominance of the tech super giants and the associated suppression of smaller, truly innovative enterprises.