business news in context, analysis with attitude

The New York Times has a fascinating piece detailing how Amazon may be using its size and ubiquity to unfair advantage over smaller rivals.

From the story:

"Not since the mid-1990s, when Microsoft dominated the personal computer industry with Windows, has a technology platform instilled such fear in competitors as Amazon is now doing with its cloud computing arm … While cloud computing may appear obscure and wonky, it underlies much of the internet. It has grown into one of the technology industry’s largest and most lucrative businesses, offering computing power and software to companies. And Amazon is its single-biggest provider.

"Amazon has used its cloud computing arm — called Amazon Web Services, or A.W.S. for short — to copy and integrate software that other tech companies pioneered. It has given an edge to its own services by making them more convenient to use, burying rival offerings and bundling discounts to make its products less expensive … Some of the companies have a phrase for what Amazon is doing: strip-mining software. By lifting other people’s innovations, trying to poach their engineers and profiting off what they made, Amazon is choking off the growth of would-be competitors and forcing them to reorient how they do business, the companies said.

"All of this has fueled scrutiny of whether Amazon is abusing its market dominance and engaging in anticompetitive behavior."

You can read the entire story here.
KC's View: