The war between the two biggest tech company is not heading to settlement anytime soon, the battle has now escalated to the level at which each company will not promote the other’s business product.
According to Business Insider, Amazon’s retail team told Nest on a call that the e-commerce website won’t be selling the Google’s product Nest in their marketplace and as a result. The call hinted that the order came from as high as CEO Jeff Bezos. Though name calling was not involved, however, the word from the Top will be associated with no other than the CEO.
As a result of this, Nest decided to stop selling any of its products through Amazon, stating that it is either its full portfolio of devices or nothing meaning the limited number of Nest devices listed on Amazon today are expected to disappear from the site once current inventory is sold out, according to a person familiar with the matter.
Tracing back to recent issues between the two leading company, a conclusion could be drawn that Amazon action is a response to Google’s decision to remove YouTube from all Fire TV products and Amazon’s Alexa-powered the Echo Show with the claim that Amazon products violate YouTube’s terms of service.
However, there have been comments on Amazon’s action, though the accusation as not been commented on by Amazon confirming the genuineness, and as a result, the belief of customers was strengthened stating that this action was taken in a feud for smart device sales.
“It’s definitely not pro-consumer, but companies favoring their own ecosystems or distribution channels rarely have the consumer’s best interests in mind,” said Avi Greengart, research director for consumer devices at GlobalData. “It is, however, understandable from a strategic perspective. Amazon and Google are both trying to build a solution set around AI and the digital home, and the more a consumer is locked into one ecosystem, the less likely they are to be as deeply engaged with the other.” He pointed out that Barnes & Noble, for instance, doesn’t sell Amazon’s Kindles, and Apple is also very selective of which third-party brands it puts on shelves in its own stores.
As a confirmation of this claim, we should be informed that Amazon announced it is buying Ring, a company that makes an extremely successful video doorbell, for roughly $1 billion. That’s likely a place where Amazon will compete with Google’s Nest.
Nest is Google’s smart home products division. It makes devices like connected cameras, thermostats, smoke detectors, and security systems. Google bought Nest in 2014 in a $3.2 billion deal. Nest later became its own company after Google reorganized into the Alphabet conglomerate, only to be reabsorbed back into Google in February. Nest is Google’s strong tool to better compete with Amazon.
As a matter of fact, this war is just between the two giant not involving other smart home products from other companies. For example, Lighthouse, an AI-powered connected camera made by a startup of the same name, is available on Amazon. Products from August, a connected home company best known for its smart door locks, are also available to buy on Amazon, along with products from several other smart home device manufacturers.
Amazon has built up an early lead in voice-controlled computing thanks to Alexa and its line of Echo devices. while Google also introduced the Google Assistant, a rival to Amazon Alexa and the Google Home speakers, which compete with the Amazon Echo and rapidly gaining market traction.
These two company has always been head by head in the struggle for smart device champ but is this even rational? Though it may be legal according to the US anti-trust law “It’s probably not illegal,” Sagers said. “It’s ugly… but American law says even monopolists have broad freedom to choose with whom they deal” but rationally is it legal?
The battle between this two giant will affect their customers more because this battle is synonymous with two fighting elephant knowing full well that it is the grass on the field that will take the fall.