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ASSIGNMENT 1 During our recent class meeting, we discussed whether big tech today might be violating anti- competitive laws in USA/Canada

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ASSIGNMENT 1 During our recent class meeting, we discussed whether big tech today might be violating anti- competitive laws in USA/Canada. Governments (EU and USA in particular) point to the fact that Top 10 tech firms are monoliths, with net profits of $261 billion and a combined cap of nearly 4 trillion. This mammoth size gives them way too much power, thus opening the door to monopolistic practices and other forms of anti-competitive behaviour. Governments point to the fact that the big-10 dominate global markets to the point of being pure monopolies. Apple, Google, Amazon, Netflix and Microsoft are viewed as the main culprits. The EU has decided that iOS and Android operating systems are two separate and independent monopolies with virtually 100% market share of their respective markets. Furthermore, the governments take the position that these companies make insider, sweetheart deals. Google for instance, pays Apple $10 billion a year to keep Google as the default search engine on Apple devices. Epic Games is currently suing Apple for indulging in "unfair competition," price gouging, stifling competition and behaving like a monopoly. Why? Because to sell their game on the App store, they are required to pay an exorbitant fee of 30% for each download. Apple counters, "go sell somewhere else;" Epic says they have no choice. Common sense also suggests a mutually-assured-destruction kind of pact between the Big-boys-club. We use our Apple phones to use google search to look for products, followed by a trip to Amazon mall and then talking about it or reviewing it on Facebook. Therefore, they are inclined to protect each other. In response, big tech uses counter arguments that are well known and used many times before. They say they compete vigorously and that the playing field is open to new entrants. FB says that Apple is its biggest competitor. In fact, FB runs attach ads against Apple's privacy settings, that they claim hurts small business (and of course them.) Facebook on the other hand is attached for playing fast-and-loose with their user data. Walmart and Disney are encroaching on their tuff, they say, with online stores and video streaming. Even small players like Shopify, they claim are nipping at their heels. Industry analysts point to the fact that Boolean logic of "or" is being replaced by "and," meaning that the big 10 no longer have a defined turf. Their core business is "everything" and this is the new competitive landscape. Thus, Amazon is lusting to enter the social media club. Since they already have a network of millions of buyers and sellers - all eager to chat and discuss products and ideas, the concept of a social network is only a step away. Apple dreams of revamping their Siri to a full-fledged search engine (and this scares Google). Similarly, Amazon also dreams of expanding their product search algorithms to create a full-fledged search engine. Amazon's Web Service (ABS) is threatened by all big players and many small ones like Shopify. And, all of big-10 and their cousins are priming to fight it out in electric cars, navigation systems, and artificial intelligence (AI) arenas. That is intense competition, is it not? YOUR ASSIGNMENT Read the relevant articles from your course website (particularly- Marketing Myopia, Collusion or Collision; Epic and Apple, Monopoly Power, Google Grows up and Core Competencies). Read class notes QUESTIONS 1. Take a position on whether Big-10 tech firms are colluding or competing? Defend your position. Be as specific as possible - by relating your answers to anti-competitive legislation in US/Canada. (4%) 2. Draw out a "product map" (core, tangible and augmented) for any one of the products of any one of the big-10 tech firms. If the map discussed in class does not "fit", then improvise. (2%).