Google feared Amazon app business' capacity to 'sustain losses indefinitely', according to document from US search monopoly trial
By Khushita Vasant ( November 9, 2023, 04:57 GMT | Insight) -- Amazon’s ability to “sustain losses indefinitely” as it developed its own suite of apps worried Google executives even though the ecommerce giant had a “very limited” catalog of apps and games compared to the Android Play Store, according to an internal Google document disclosed today.Amazon’s ability to “sustain losses indefinitely” as it developed its own suite of apps worried Google executives even though the ecommerce giant had a “very limited” catalog of apps and games compared to the Android Play Store, according to an internal Google document disclosed today.“We need to be particularly concerned because Amazon thinks about gaming like all of Prime … as a loss leader to bring buyers to their ecommerce store. Realistically, they can sustain losses indefinitely,” according to the document, which contained observations made by senior Google executives about Amazon's Japan app store.The document was introduced by DOJ attorney Meagan Bellshaw as the trial in the historic monopoly suit entered its 37th day in a Washington, DC federal court. The exhibit was used during the DOJ's cross-examination of Jamie Rosenberg, who consults for Google. Rosenberg was previously Google's vice president of digital content, having joined the company in 2010.Rosenberg described the exhibit as an analysis of Amazon's progress with its app store in Japan.The title of one slide was, "Need to Focus on Making Play User and Developer Loyalty a Rational and Attractive Proposition." It said that Amazon Japan lacked "critical mass" of users and developers, but if the company could achieve either, it could create a "virtuous cycle" drawing in more users and developers....
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