Google fined more than Amazon likely made on Prime Day (The 3:59, Ep. 428)
Google fined more than Amazon likely made on Prime Day (The 3:59, Ep. 428)
2018-07-18
welcome to the 359 I'm Alfred Inge I'm
Ben Fox ribbon the European Union hit
Google with a record-breaking five
billion dollar fine over android
antitrust practices on Tuesday the
reasoning is that Google's got a
stranglehold on the mobile phone market
thanks to its agreements with phone
makers like Samsung and LG they're
completely dependent on Android and the
agreements require them to have default
apps like Google search the Google Play
Store or Google Maps Chrome YouTube
installed on their the you worry is that
Android further deepens Google's
dominance with apps and its own services
I mean if you think about it Android is
the most popular mobile OS out there and
these phones can't really exist without
Android and for them to do it they have
to have Google's apps the EU argues that
that gives Google and Android a unfair
advantage and Google CEO sundar pichai
said he would be fighting this do you
think that Google really has a chance at
appealing this or do you think that this
is like kind of an open-and-shut case
they obviously have a chance in
appealing it it's a very complicated
issue and sundar I think accurately
referenced in his blog post today the
idea that bundling your services or your
apps today is very different than it was
20 years ago so the United States versus
Microsoft which looms large in this
particular case where Microsoft was
bundling Windows with Internet Explorer
and eventually had to settle that case
with the United States government that
was an entirely different situation the
Internet's was still in its infancy and
it was really hard to download different
types of web browsers like Internet
Explorer or what was it I think it was
that statement opera those different
guys so is it really depends whether
regulators are gonna see that as a big
difference that you could switch up your
apps or your browser is much more easily
these days well speaking of Google and
it's expanding power my best friend rich
naiva our Google beat reporter had a
scoop yesterday reporting that the Ness
CEO stepped down after a tough
transition under Google Ness rejoined
Google five months ago which originally
was its own smart home company and
employees at Nets complained that their
CEO was more of an Operations Manager
than a leader
and they wanted somebody who had who had
taken bigger risks with their products
they didn't want like more mediocre just
kind of like middle of the aisle kind of
products from from nest and I'm just
curious like how much crazier our smart
home profits when Google really gonna
get now like under new leadership I
suppose that's a good question
nest has really had a lot of stories
written about it for a couple years now
that they've had leadership problems and
operational problems haven't been coming
out with enough products or the right
products or innovating enough maybe this
change will help them continue to move
forward but it seems like they're
constantly in the process of shaking
something up so that seems like an issue
I also forgot to mention his name during
this introduction it's a Marwan foz and
is the I think my bigger question is
also you know just they had a lot of
problems with him right yes yeah and
yeah I think you hit it off pretty well
from riches story that they saw him more
as like a nuts and bolts operations
person person which maybe nest needed at
the time but a lot of people were really
probably hungry for the leadership and
the vision of Tony Fadell that started
the company and helped create the the
iPod and was a big part in developing
the iPhone when he was at an Apple so he
was like probably much more of a big
thinker I'm kind of guy and you know
finally Amazon's 36 hour prime day is
finally over
they were projected to make what like
3.4 billion dollars from the yes from
like the day and a half of sales one
estimate was that it was going to be
three point four billion dollars in
sales which is staggering considering
that it's in the middle of July well
away from the holiday shopping season so
how do they do you have three seconds by
the way they they hit all the numbers as
expected this is this is the third year
where they had a record and more people
joined prime than any day in previous
history the company is growing so
quickly though that a lot of these stats
are probably going to get lapped
eventually or pretty soon probably in
the holiday shopping season anyway
alright only 20 seconds over but you
know that's it for us today thanks for
listening and check us out on Sina I'm
Alfred
I'm Ben Fox Ruben thanks for listening I
said thanks for listening and with that
might rhythm is shot that's a great idea
you better keep that out of it thank you
everybody
as always for joining us for the
recording of the podcast I said thanks
for listening we'll be taking your
questions and comments now submit
anything you want to know about Amazon
or nest or the guy with the most wacky
Elmer Fudd name I have ever heard in the
history of everyone follow my one
follows sorry I shouldn't make fun of
people with speech impediments but this
job dude yeah yeah not nice what the
hell the other element that I wanted to
mention about the Android thing is you
know Google is an enormous ly profitable
company they obviously can be able to
afford these staggering fines there was
another fine from the EU last year
related to Google's services that was
like 2.7 billion dollars so the
financial impact is one thing the real
question is is the EU gonna force Google
to change its business practices and
therefore and create an opening for
rivals so that's something that I think
people really should pay attention to in
the future as opposed to these fines
because the fines to a certain extent
are limited and it's something that you
know Google writes a giant check and you
know now they they can move on with
things yeah I don't think this is a fun
that they're really gonna just be like
oh let's just write a check for it
though I don't really know there's a lot
of money I agree with you they're
definitely gonna fight it but if the EU
decides to just focus on financial
impact it's not actually going to change
it I think it's not going to change
their business practice I mean like
Windows Phone and Blackberry I don't
think well they did have their fan bases
and seeing something like this kind of
makes me wonder how would things have
shaken out differently if Android had
another major competitor it wasn't just
iOS because iOS is more of a premier or
more of a premium product it's only
through Apple
and it doesn't have nearly as much
market share yes yes okay thanks
let's take a question from Eric oh s---
it's not really a question as much as a
statement they need a one trillion
dollar fine that sounds kind of hard why
[Laughter]
from nesrin now the net now that nest is
a proper Google home team part do you
think nest will announce new products at
the next pixel hardware event I think
Google will announce new products that
you know that nest will be like
compatible with I mean after they had
merged there was that story that that
came out that they were working on a
like a Google home like enabled like
thermostat kind of thing we're like you
could talk to it as if it were a Google
home as well I think you can expect to
see a lot more of that in you know
future nest products but I I do think
that they're trying to make this more
like Google branded as opposed to like
nest yeah that's just me when it comes
to hardware I think that it's pretty
difficult to make like a really quick
pivot so all these leadership changes
can't possibly be good for the company
and they're not I don't think that
they're gonna come out with something
new in the immediate term but the hope
is to create a good foundation to have
better stuff moving forward that's what
I would expect to see next question
coming in from syringe Oi whatsapp CEO
stepping down over privacy issues now
nest CEO stepping down does this feel
like a trend for companies bought by
tech giants I mean I would make the
argument that those were two completely
different cases though true that being
said like when whatsapp was bought I
mean this guy is stepping down with like
1.3 billion dollars so I don't really
know money yeah I don't really see the
parallel here for him and yet for him it
was more of like a moral issue whereas
in this case this guy was so this guy
the the Ness CEO this is the second like
Nessie oh because the original founder
had already stepped down after Google
bought them so this was somebody that
was put in by Google right and then and
then as people didn't really like yeah
and
we're like look we got a we don't like
what he's doing I don't like what's
going on here we feel like we're coming
out with mediocre products going back to
what syringe I said though I think it's
pretty obvious that like if you agree to
sell your company you're probably not
gonna be there either you're either
gonna be one of those founders that's
gonna leave after you your stock vests
or maybe maybe you get ridden out
whatever but like it is no longer your
company as much as there's a claim that
like we're gonna buy you but it's gonna
stay independent yeah I mean like when
the rubber meets the road like they
bought your yeah I almost never see
that scenario play out when like I mean
they buy the company and then they stick
around for the rest of like that
companies like incarnation I mean it
happened with like Instagram when they
were bought it happened with oculus when
Facebook bought them whatsapp now that
we've seen so yeah i really don't i
don't i've never really seen them like
sticking around after they've been
bought i'm is they got i'm sure their
money yeah i'm sure there are cases when
the founders do stick around but more
often than not founders do tend to be
serial entrepreneurs that want to go and
start something else and that is
generally what ends up happening like
Andy Rubin is a good example
yeah to where he's the Godfather of
Android after Android ended up getting
scooped up by Google now he's off to
doing essential so he's always up to new
stuff too so in a lot of ways that's
really good for tech industry and the
economy that these really smart people
end up recirculating and developing new
stuff serial entrepreneur that sounds
like such a skeevy corporate evil side
doesn't it sorry
it's a term that I've heard a lot and
it's it's a just launching and taking
some breakfast foodies it's a breakfast
food that I'm also working on with
Alfred so I hope people buy it where
it's the opposite of avocado toast right
it's it's worth I'm launching a
Kickstarter later today so look look for
that it's basically as useful as a
child-size submarine it's it's Captain
Crunch but with like a tiny Elon Musk
faces instead
so here's a question from Timothy do
asking isn't that the OEMs problem of
adding more browsers not Google's issue
the the argument from the EU is that the
OEMs are too beholden to Google and are
required to preload a lot of Google
services yeah and that bundling creates
an anti yes it's not that there's not
enough browsers out there it's that all
these phones that are coming out even
though there are no em they have to have
Chrome on it or they have to have
YouTube on it and the argument is that
like they shouldn't be like be allowed
to do that right and even though you can
very easily swap out apps again from the
--use perspective it's the path of least
resistance for customers and if you've
already got Chrome on your phone you're
probably just going to use that and not
switch to firefox or another competitor
again those are the e use arguments not
mine but that's that's kind of what
their position was from and da inserts
shut up and take my money mean for your
breakfast Kickstarter so Ben you're off
to a good start
oh sweet all right that is great news I
can't wait to sell on them be fired
here's another one from Eric owes a fine
needs to be high enough to hurt you
which at this point seems kind of
difficult for somebody like Google if
it's very low then that stops someone
like Google from just paying a fine
every year and just changing their
practices like what how can they
actually hurt Google and teach them a
lesson like everything is a perpetual
slap on the wrist when you're as big as
Google or Facebook or Microsoft I would
say five billion dollars it's not a slap
on the wrist that's like a hefty sum of
money they're like even like even though
like Google is worth as much as it is
like I just I'd argue five billion
dollars is a hell of a lot of money for
them yes and on top of that we still
have to see if they are going to force
them to change their business practices
it's possible that they do require them
to open up Android and you know but this
is something that if Google appeals it
could drag on for a couple of years so
it's really hard to say in these cases
it's really interesting to me though
that all the
like different moves against the tech
industry have all really been coming
from the EU like it's not really the US
government that's been you know dropping
all these like different fines and
regulations I mean there was like GDP
are now you know these fines there was
another there was another set of fines
that had come from a court in England
that I wrote about like about like a
month or two ago essentially about Gmail
security stuff on iPhone so there it's a
really interesting point that you
mentioned that so I went to Peter Thiel
talk a couple months ago and he directly
mentioned this issue and said it's
because the Europeans are jealous that
they don't have any major tech companies
on their continent and so they basically
it's easier for them to like poke at
these major multinational American
companies than create their own stuff it
also I mean like that's that's an
interesting theory from teal it also
points to the fact that the EU does not
own these companies they are not on
America they're not on EU soil yeah so
it is to a certain extent easier for
them to throw rocks at them what did it
just be that wouldn't it just be that
like they wouldn't be allowed to be used
in EU which is a big chunk of their that
way that would be a nightmare scenario
for those companies and it would I don't
think we're really quite there yet but
that's an interesting point to mention
winding down on time but let's take
another great question from syringe oi
who is always able to throw the
slightest bit of shade at Apple in the
most classy of ways will these push
backs force Google to become more like
Apple and start mass producing pixels
for the vanilla stock experience and
move far ahead of the Android
competition within that's a good idea I
mean like it's a terrible idea but a
very interesting theory from string
Joyce o
pixel at this point is has a very very
low market share I believe but you know
I have a couple of friends that use it
and like it a lot um I would welcome
that just because then that would mean
cheaper phones for me and like I do like
the pixel a lot I think like three of my
friends so 75% of my friends
have pixels and they love them yeah
that's nice of you to say I have an
Android like a Samsung phone so I guess
I'm the other 25% no I said friends oh
okay I got it
yeah cool mark dybul things that Google
should be fine the Google of dollars I
think that would be significant Chad has
really turned on Google I love which by
the way we're on YouTube just like just
find them some more and like there's no
reasoning behind it like there could be
like privacy issues there could be the
antitrust issues or just I don't like
them and but it's just I just take more
money away from them that that's it yeah
yeah I mean it's the the other fine from
last year for 2.7 billion dollars was
was also really significant and you do
wonder what exactly is gonna change with
this what other ideas the EU has to find
them even more I do you think it is a
silly request though it's like stop
putting your own apps on your own
operating system that makes no sense to
me
I get that logic but that being said
like the US versus Microsoft and was
very directly related to this yeah that
everything to do with creating an
ecosystem with your software that
bundled things and it's super helpful
and valuable for the company but at the
same time creates a platform where you
you basically force out rivals and
that's what the the regulators are at
least claiming is going on in this case
let's help clear up a detail for and
what about Safari on iPhones that's
similar to how Chrome is stuck on
androids or am I totally off-base with
this yeah I mean you're correct about
that and but Apple maps like that that's
been the argument from from Google
though where they've been saying like
you're ignoring the fact that like Apple
does the exact same thing but the
argument from the EU is that you know
because Android phones are so much more
popular than iOS is that like they have
a dominant market position basically I
mean that that's the basic argument here
we're like yes like it's also bundled on
like iOS stuff but I think they only
have like what like a 30% share of like
I believe it's an 80/20 % yes swab where
80% of the market is controlled by
Android and 20% by Apple it's also
different because Apple not only
controls the hardware but the software
and the apps like its own app like suite
of apps whereas Android is offered for
free to other phone manufacturers which
makes them dependent and with and
beholden according to the EU to Google
so it's so it's a slightly different
relationship obviously one more question
from Nasreen Google is reportedly going
to launch their own fully fledged
ecommerce service in India this coming
October do you think they will do the
same in the u.s. too called Google
Shopping Google Shopping they have it
already and India only no no and you in
the u.s. it's Google Shopping and you
know maybe or sorry Google like Google
Express it used to be called Google
Shopping Express and now it's called
Google Express they partner with a bunch
of you know like major retailers like
Target and Walmart to ship stuff maybe
they're doing something a little bit
more like direct in India I don't know
anything about that so this is gonna
start in India and I yeah but like maybe
maybe the maybe this person can give us
a little bit more information about the
India service does this mean that like
Google is going to create its own
warehouses its own breasts day yeah and
they're gonna and there it does this
mean that they're gonna have warehouses
and like their own inventory and do
their own shipping kind of like Amazon
that would obviously be interesting
because right now Google Express like
they just partner with major brands like
major retailers to kind of work as a
middleman you know so like they're
they're more of like platform to like
sell stuff from I don't know
adidas we got just enough time for a
couple more questions APEC asks what
customers actually download different
browsers and set up phones having a
phone without Google Apps the be kind of
empty would normal people want to take
the time to do that I do I would
personally yeah I think
the majority of people though tend to
stick with their default app when they
can just because I think it follows a
theory of if it's not broke why try to
fix it and it if it comes already and
there's no problems with you using
Chrome like you really just want
something that works unless you want
something like specific like a specific
feature that like Firefox might have or
anything like that like most people
really just want to browse Oh like it
like i prefer chrome to safari but on my
iphone like i safari works fine for me
and like there's nothing like specific
that i can get with chrome that like
safari doesn't provide so i just leave
it as safari on my iphone another
example for me personally is that
anytime i get an iPhone like a new one
for like work or personal I usually
download Google Maps because I found
Google Maps to be more useful yeah for
most that's yours that an apple that's
the thing like unless it's like in like
something that you prefer already and
want to change to like let your example
of Apple maps in Google Maps I'm sure
lots of people do that or you know if
they're driving and they know that
Google Maps isn't that great for driving
but ways is like they'll download that
and then Waze is owned by Google yes but
it's still it's not it's not a default
app that comes with your phone that's
true is my point so like I think that's
like that's when somebody will go out of
their way to download an app that's not
default but otherwise like and and a
good example like so for instance there
are some rivals that are trying to do
exactly what you're mentioning so for
instance like Firefox is really trying
to focus on privacy elements for its
browser to try to get people to say like
oh we don't want our data to get
packaged and sold and us that be
advertised too so Firefox is trying to
differentiate itself in the market for
that there's also a search engine called
DuckDuckGo yes which like I don't use
that much but it's interesting that
they're also trying to get a little bit
more attention by being the anti Google
doing a little bit more privacy in their
search so maybe that is gonna function
as a useful rival yeah at this point
both of them even Firefox I would argue
or it's significantly niche compared to
like Google services
let's take a couple more from Chris
garner why did Apple get rid of Google
Maps wait that was a while ago it was
but this is somewhat related I was like
a default app I'm curious as to see if
we think collectively we're heading
towards this whole like default
mentality if you're gonna start seeing
phones become way more proprietary I
know you just mentioned some of the
partnerships that are being brewed but
do you think overall we're gonna start
seeing more phones that are locked down
to their own ecosystems or are we gonna
hopefully see a little more than fold in
the industry all these major tech
companies are really into creating
ecosystems that you like live in
constantly whether it's mobile or smart
home or desktop laptop whatever and it
does create a significant amount of
convenience for customers that's why
it's helpful to like have only Apple
products for certain people or only
Google products for other folks but so I
don't think they're gonna become more
open because it's way more profitable
for the companies to just get you to
keep using their services and and like
only their services so if anything I
think they're they're gonna try to
create more of a stranglehold and take
up even more of your time that's that's
at least my expectation from Raheel how
much is Google's net worth we can Google
that I think what if Google like
adjusted its like search results so it
says like 80 bajillion dollars
so last I checked Google was the third
most valuable company in the world by
like market cap by like how much their
stock trades at and the market cap is
currently 837 billion dollars so could
for Google the other two highest
companies Apple is number one and Amazon
is number two Microsoft is way up there
too I think Microsoft is number four I
thought Amazon overtook Apple no not yet
but they could they couldn't especially
after all those amazing Prime Day sales
yeah so I never even got anything on
prime day we hope everybody at a
positive prime day we
Negi after and crashed it was definitely
much more newsworthy than I had
anticipated I mean like the glitches
were fairly like surprising and much
longer lasting than I love new pointment
after though where it's just like oh we
had a rough day
hahaha don't ask us about how this
happened already one more pretty much
one more question from Eric OHS at this
point in time smartphone software is
primarily made by Apple or Google why do
you think there haven't been any major
new players it's been more than 10 years
now that was the best baby no I don't
know paid me to say that great thanks
Alfred now would that set us back like 5
years what have you done I basically set
everyone back to my age right I don't
know what hasn't been new competitors
there's been a procedure I mean look the
point is is that there have been
competitors like blackberry and Windows
Phone are two very good examples of that
and the market spoke and they decided
that like those aren't as good and they
didn't get enough developers to work on
apps like it's hard to create a mobile
platform and it basically was like a
winner take most situation where there
just ended up being a top two it was
really really hard anymore to get in I
think like think about how there aren't
that many competitors and like the voice
assistant market right now even though
there's like everyone is trying to come
up with their own voice assistant right
like they've got you've got Syria you've
got Alexa you've got the Google home
assistant then you've got Samsung's own
big speed and then you have got there's
one that's like slowing my mind right
now but there's there's Cortana
yeah IBM started like Watson assistant
there are a bunch of other small but
like when you think voice assistants you
really only think like Alexa or the
Google home maybe Siri and like the idea
is that like because these are all so
popular everywhere all these developers
are making skills and apps and content
only for the really popular ones and
then like all the other ones like
essentially just gonna start fading away
soon like I wouldn't be surprised if one
of them just like dropped out was like
we're not trying to do this anymore but
hey you can use a lot
on our device now instead like there
it's just like it's not a game or
playing for them anymore
yeah one of the interesting examples is
that Amazon did create a forked version
of Android for its tablets and it has
its own app store where you can't really
get the exact versions of Google Apps
because Google doesn't let you use them
and it also if I remember correctly
provided that forked version of Android
on the fire phone which was short-lived
and didn't really work out but I guess
ultimately it's it's really hard even
even like a like a version of Android
like a significantly different version
of Android it's hard to really build up
enough market share to make it
worthwhile are you saying fort just as
like a self-censorship kind of way or
what no specific thing so it's actually
forked okay yeah sorry significantly
changed it enough that Google's like
suite of apps like they decided that
they like Google wasn't gonna work yeah
it's a big it's like I almost bought one
for like 20 dollars and I'm just like I
can't get any Android apps on this is
pretty much useless you can get Android
apps on them but like they're like
through we are like third party stuff or
whatever like the Amazon App Store is a
little bit weird in that way because
they forked it away from I'm just gonna
keep saying forked anyway I'm really
looking forward to the day that Apple
shows their true colors when like they
realize that Siri
isn't really all it was made up to be
and they've become kind of bottom of the
barrel as far as the voice assistance
goes and they turned into that bratty
kid on the playground who's like I
didn't want to play anyway boy stupid no
I mean they were kind of first to
afflict the voice of system stuff true
but they're weak compared to the echo
and the Google home yeah but they're I
think they're aware of that though that
for them it's more just like we don't
want to collect data on people and like
we think our voices system can work fine
without being able to collect data on
you because like I really only use mine
or like set a timer or like an alarm as
opposed to you know help me by like
eight rolls of toilet paper or something
that's like I don't
type that I just let me dream I think
it'd be funny if one of the tech giants
turn into a spoiled brands and we don't
want to do these anyways that's what
I've that's what my official prediction
that's coming in five years mark it down
okay we're out of time I think we need
to get cats back in here sometime soon
you've got more than a handful of people
in the chat from her heel to Bobby who
want to hear about home theater stuff
Roku wireless speakers which I know yeah
we're coming so yeah we got to get David
Katz back on the show are you talking
about the Roku smart smart speakers that
they announced a few days ago I believe
so yeah
could be a good excuse to bring cats on
yeah I'll pull them out of the basement
we haven't fed him in a bit so I don't
know if he's okay
so there was a ton of news today but if
it's a little bit slower tomorrow maybe
we'll try to get cats on or I don't know
sometime last time I tried getting in
money at pinkeye gross so yeah I'll give
it to him again cats a fan favorite we
should just get him on more often in
general yeah that sounds good to me
anyways take it home all right well you
know thanks for listening again if you
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I forgetting anything no see Netcom
Cienega yeah thanks for listening and
we'll see you tomorrow I guess thanks
for listening thanks for listening but
no
you
you
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