In a recent Wall Street Journal op-ed piece, George P. Bush, the former Land Commissioner for the State of Texas, contends that the antitrust lawsuits brought by the Department of Justice against Google and Amazon are primarily driven by competitors' and not genuine consumer harm.
"Both cases allege the companies have maintained unlawful monopoly power over their peers. Yet both cases are built on complaints from competitors—not consumers—who lost fair and square and are now crying foul to government referees," George Bush said in the WSJ op-ed.
Bush warns that the ‘interventionist philosophy” in the U.S. is on the rise, with antitrust activists leading lawsuits against Big Tech companies. If these activists succeed, other industries like telecommunications, retail, automotive, and energy may also face similar government scrutiny, he suggests. “It isn’t the government’s business to pick winners and losers and dictate consumer choices.”
Bush’s concern stems, in part, from the European Union’s heavy handed approach to technology companies, which, he argues, has stifled innovation. The aggressive antitrust and regulatory action in Europe has, according to commentators, chilled innovation in the continent and made companies, “risk-averse and reluctant to offer new products or acquire new businesses” Bush argues.
The U.S. Department of Justice (DOJ) recently initiated an antitrust lawsuit against Google, accusing the company of using unfair tactics to maintain its dominant position. However, commentators, Google's lead lawyer and other tech executives have argued that Google Search's dominance is due to the company’s superior product and not any unfair advantage. Google has also emphasized that consumers have the option to easily switch to a different search engine if they prefer.
The Federal Trade Commission (FTC) and more than a dozen state attorneys general announced an antitrust lawsuit against Amazon in September, according to The Verge. The lawsuit claims that Amazon, a major player in e-commerce, has illegally exploited its market position to eliminate potential competitors.