No Company is Perfect: They Are All Continuously Learning and Adjusting!
By Faisale Shefawe
Published on 06/03/24 11:47 AM
Companies, whether big or small, profitable or losing money, are like humans. They are not perfect. They make mistakes, pay fines, learn, grow, and sometimes even break laws or stifle competition. Even the most successful companies make mistakes and have to apologize for bad decisions. Part of growing for any company is making mistakes and adjusting as they move forward.
Apple, the most successful technology company, surprised its customers when it announced a change to its unique charging port. Starting from iPhone 15, they switched to USB-C, a port used by other phone companies like Samsung and Google. The European Union (EU) forced this change to reduce waste and make it easier for people to share charging cables.
Apple could have made this change before the EU stepped in. It seemed like a mistake not to make it easier for people with different phones to share chargers. Apple's unique charging design had led to unnecessary costs for consumers.
The EU also fined Apple $2 billion for favoring its music service, Apple Music, over its main rival, Spotify. Apple didn't allow companies like Spotify to tell customers about lower subscription fees on their own websites. The EU said this business model made European users pay more, and it wanted more freedom of choice for its citizens and businesses.
On November 10, 2020, Amazon, the e-commerce giant, was accused by the EU of using its vast consumer data to take business away from smaller rivals on its platform. Amazon started selling popular items at cheaper prices after learning which items were popular from other sellers. The EU said this practice hurt many small businesses that couldn't compete with the retail giant. On December 20, 2022, Amazon settled the case by agreeing to address the issues. Amazon promised not to use sellers’ information to compete against them and to treat sellers equally, allowing them to choose how they ship their products.
Big tech problems don’t end with the EU. Both Apple and Amazon are being sued by the U.S. government for antitrust violations. On March 21, 2024, the Department of Justice (DOJ) and other state attorneys sued Apple for monopolizing the smartphone industry. The DOJ said Apple uses its monopoly power to make more money from consumers, creators, small businesses, and artists. On September 26, 2023, the Federal Trade Commission and other state attorneys sued Amazon, claiming the e-commerce giant uses its monopoly power to stop rivals and sellers from becoming more competitive. The lawsuit alleges Amazon overcharges sellers and lo