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| There is growing pressure to differentiate between Amazon and App Stores |
A group of senators has announced plans to introduce an anti-discrimination law that could transform Amazon's online marketplace.
After months of hearings and negotiations, the Senate is under mounting pressure to pass a new law that would ban online platforms from promoting their products and services to their competitors.
The AOL Choice and Innovation Act prevents companies like Amazon, Apple, and Google from using their dominant position to harm the companies and other competitors who use their platforms.
The House of Representatives voted in June on a Justice Committee bill of the same name. The Senate version does not match the House version. But it shares a similar language.
The announcement came after Reuters reported that Amazon was using market research data to copy popular products and manipulate results to support the company's counterfeit products.
A new survey from The Markup also shows that the company is one step ahead of its products compared to its competitors. Over the years, sellers have accused Amazon of similar behavior.
The allegations are part of a multi-year antitrust investigation by the House of Representatives against Amazon and other tech giants that inspired the original bipartisan bill in the House.
Lawmakers said that when a dominant tech company alienates and stifles competition, it hurts small businesses and increases their costs. The new law establishes new rules to prevent large companies from outperforming their smaller competitors in sales.
Law can reshape the Amazon market
In addition to Amazon, the invoice could also change the way Apple and Google operate their app stores. This can prevent companies from prioritizing their applications.
Earlier this year, Apple was asked to allow app developers to send payment options to iOS users. This is the opposite of what the iPhone manufacturer offers.
For a legislator who wants to regulate the online market, this multi-party support is an important step forward. It shows that Republicans and Democrats are ready to work together to increase competition in the industry.
Although Congress broadly supports this measure. The Progress Chamber of Commerce released a statement saying that the bill would harm, not improve, customers' online experience.
The organization said that a ban on Amazon sales of Amazon Essentials and a ban on the use of Google Maps in search results would not improve the Internet for the family. It's like calling an auto mechanic to fix a laptop.
Congress is also under pressure to take action in the case of electronic markets and counterfeit products. The House of Representatives last week introduced the INFORM Act, which requires platforms like Amazon to verify the identities of top sellers in order to restrict sales of counterfeit products.