[ad_1]
Following an attack on the U.S. Capitol on Wednesday by a crowd of Trump supporters demanding the reversal of the 2020 election results, a number of major tech companies have taken steps to mitigate the risk of further violence in the U.S. January is approaching. 20 Inauguration.
As part of that effort, Amazon (AMZN) unplugged the right-wing social media app Speak, cutting off its access to Amazon’s Web Services (AWS), which hosted the app, and effectively removing it from the Internet.
The social network has, in turn, filed a lawsuit in Washington state, claiming that Amazon’s move is part of a coordinated effort to benefit competitor Twitter, which also uses AWS, rather than an attempt to quell election-related calls for violence. results.
Parler’s lawsuit, which alleges antitrust and contract allegations, claims Amazon’s move was “motivated by political animosity” apparently intended to reduce competition. But according to three leading antitrust experts, the lawsuit is unlikely to succeed.
“As noted, it seems implausible as an antitrust claim,” Stanford Law School professor Mark Lemley told Yahoo Finance. “Amazon has the general right to refuse to do business with anyone for any reason, if any at all.”
Talking claims a political bias
Amazon withdrew the social network from AWS shortly after Twitter (TWTR) permanently banned President Donald Trump from its platform due to what Twitter says was a risk that Trump would use his account to spread further violence . Google and Apple have also removed the Talking app from their respective app stores over concerns that the platform is not doing enough to control calls for violence.
But Parler alleges that Amazon was not trying to stop the spread of the violent vitriol, but instead was working to benefit Twitter, which recently signed a multi-year contract to use AWS to fuel user deadlines.
When Amazon realized that Trump’s Twitter ban was prompting some users to leave for Talk, the cloud giant banned the conservative site from helping its own client, according to the lawsuit.
Parler alleges that Amazon, in addition to violating antitrust law, broke its contract with the social network by cutting its service with just 30 hours’ notice, rather than the required 30 days.
“AWS’s decision to effectively close the Talk account is apparently motivated by political animosity,” the suit read. “It is also apparently designed to reduce competition in the microblogging service market for the benefit of Twitter.”
An Amazon spokesperson said the lawsuit lacked merit and that AWS served customers from all political backgrounds. “However, it is clear that there is significant content on Speaking that encourages and incites violence against others,” the spokesperson said, “and that Speaking is unable or unwilling to identify and promptly remove this. content, which is a violation of our terms of service. “
After Amazon alerted Talking to its concerns for “a number of weeks,” the Amazon spokesperson said, it actually saw an increase in dangerous content – prompting the tech giant to suspend its services. Sunday night.
An implausible claim
Despite Parler’s claims, three prominent antitrust scholars say the case has little merit. According to Lemley, it would be one thing if there was evidence that Amazon conspired with Twitter to target Speak, but that Amazon acting alone does not violate antitrust laws.
“There could be a claim for breach of contract, depending on the agreement between the parties,” Lemley said. “And I find it somewhat troubling in terms of policy that Amazon can actually start a site on the Internet. But that doesn’t make it a violation of antitrust laws.”
George Hay, professor of law and economics at Cornell Law School, offered a similar assessment, saying that since Amazon is not a competitor of Parler, it has no obligation to provide services to Parler. under antitrust law.
“If there was an agreement between [Amazon] and [Twitter] this [Amazon] might offer hosting only to Twitter, ”he said. “But that’s not what an agreement between them says.”
Yahoo Finance has contacted the lawyer representing Parler in its lawsuit and will update this article with any responses we receive.
Penn State law professor John Lopatka, who wrote a multi-volume treatise on the government’s antitrust lawsuit against Microsoft, offered a more direct assessment.
“I doubt he has legs,” he told Yahoo Finance. “There is a difference between having a powerful technology platform and committing an antitrust violation. Amazon faces serious antitrust challenges, but it is not one of them.”
Amazon is one of four big tech companies, along with Google’s parent company Alphabet, Facebook and Apple, subject to antitrust lawsuits or investigations. Amazon’s discussions so far have focused on its e-commerce platform, but its AWS business, which serves as the backbone for websites around the world, has also come under scrutiny by the Federal Trade Commission. , according to Bloomberg. Additionally, a Wall Street Journal investigation found that the company met with startups about the investment, then launched competing products through AWS.
While Talking’s antitrust lawsuit may not go nowhere, Lopatka said, censorship concerns raised by the lawsuit may put Amazon at risk, as lawmakers discuss potential legislative action on online platforms and how they control their content.
“It’s a risk,” Lopatka said, “but not an antitrust liability risk under current law.”
Subscribe to the Yahoo Finance Tech newsletter
Do you have any advice? Email Daniel Howley at [email protected] over via encrypted mail to [email protected]and follow him on Twitter at @DanielHowley.
More from Dan:
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, SmartNews, LinkedIn, Youtube, and reddit.
[ad_2]
Source link