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Google, Amazon defend smart-speaker business at antitrust hearing against accusations that they favour their own services

  • US senators questioned Google and Amazon at an antitrust hearing on Tuesday about what lawmakers said were anticompetitive practices related to smart speakers
  • Sonos said that the business practices of its Big Tech competitors make it hard for the speaker company to compete

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Lawmakers have criticized the Google Home smart speaker and Amazon Alexa for favoring the companies’ own services. Photo: Getty Images

Alphabet Inc’s Google and Amazon.com Inc defended their smart-speaker businesses as US senators warned the grip the companies have over the market could harm competition and consumer privacy.

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Republicans and Democrats at a hearing Tuesday raised concerns about what they said were anticompetitive practices such as selling devices below cost and promoting their own services over those of competitors on their platforms.

Senator Amy Klobuchar, the Minnesota Democrat who chairs the Senate Judiciary’s antitrust panel, said the expansion of technology giants into more at-home devices risks further consolidating the market, giving an advantage to established players. She cited a scenario of an Amazon device providing customers the option of buying groceries only from Amazon-owned Whole Foods.

“In home technology, we see some of the most powerful firms that dominate tech today poised to dominate the platforms of the future,” she said. “Consumers should choose, not vertically integrated tech giants.”

Chairwoman Amy Klobuchar (D-MN) speaks during a hearing with the Senate Judiciary Subcommittee on Competition Policy, Antitrust, and Consumer Rights, on June 15 in Washington, DC. Photo: AFP
Chairwoman Amy Klobuchar (D-MN) speaks during a hearing with the Senate Judiciary Subcommittee on Competition Policy, Antitrust, and Consumer Rights, on June 15 in Washington, DC. Photo: AFP

The hearing marked the latest move by lawmakers on Capitol Hill to scrutinise the practices of the tech industry’s biggest companies as they consider potential reforms to antitrust laws to impose tighter regulations on the companies. Klobuchar and Senator Mike Lee of Utah, the senior Republican on the antitrust panel, have both introduced their own legislation to overhaul and strengthen antitrust enforcement. House lawmakers last week introduced their own proposals.

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