AAP calls for closer regulation of Amazon and Google

The Association of American Publishers (AAP) is calling on US authorities to more closely regulate dominant online firms such as Amazon, warning they risk causing “irreparable damage” to creative industries.

In a filing with the Federal Trade Commission over its recent on competition and consumer protection, the AAP stressed big tech platforms exercise extraordinary market power in the markets for book distribution and Internet search.

The 12-page filing highlighted the market power of Amazon and Google, threats to competition, non-transparency of algorithms and the linking of distribution services to advertising.

“No publisher can avoid distributing through Amazon and, for all intents and purposes, Amazon dictates the economic terms, with publishers paying more for Amazon’s services each year and receiving less in return,” the AAP said.

President and c.e.o. of the AAP, Maria A. Pallante explained: “Unfortunately, the marketplace of ideas is now at risk for serious if not irreparable damage because of the unprecedented dominance of a very small number of technology platforms.

“In order to mitigate this crisis and protect the public interest, AAP urges the FTC to exercise much-needed oversight and regulation, particularly as to circumstances where technology platforms stifle competition and manipulate consumer outcomes.”

She warned: “No publisher can avoid distributing through Amazon and, for all intents and purposes, Amazon dictates the economic terms, with publishers paying more for Amazon’s services each year and receiving less in return.”

Pallante also claimed Amazon’s approach allowed “widespread counterfeiting, defective products, and fake reviews” while Google’s dominance was a major concern because its business model “is largely indifferent to whether consumers arrive at legitimate or pirated goods.”

The filing warned the FTC needed to consider how to “redress and prevent harm to competition, whether through structural remedies, requirements for treatment of competitors on fair, reasonable and non-discriminatory terms, or other means."

The Bookseller has contacted Amazon and Google for comment.