In a measure that many consider controversial, a report says that Amazon has been adjusting its search system so that products that are more lucrative for the company appear higher in results, compared to those from which it receives a lower benefit.
In an exclusive report, the Wall Street Journal reports having talked to people who said they worked on the optimization of Amazon's secret algorithm, so that the search results show elements that increase the profitability of the company, instead of showing other products more relevant or more sold. In other words, when you search for a particular product in Amazon, it does not necessarily show you the best, but those that allow you to earn more money.
Sales through Amazon have, in many cases, the power to make a difference between the success or failure of a product, so the adjustment could have dramatically hurt companies that had no way of overcoming the suggestions that the algorithm It showed users.
People who claimed to work on the project said they don't know how much the algorithm impacts Amazon sales. However, Amazon's private brand, known as AmazonBasics, requested to have improved lists in the search algorithm to first display its broad product line.
Amazon defends itself
In a statement sent by email to the Wall Street Journal, Amazon denied the accusations, stating that it had not modified its algorithm to classify the search results based on financial profitability, although it refused to discuss the internal operation of the algorithm. Similarly, an Amazon spokesman told Digital Trends that the company has not changed its search algorithm to boost more profitable products.
"We present the products that customers want, regardless of whether they are our own brands or products offered by our selling partners," the spokesman said in a statement. "Like any store, we consider the profitability of the products we list and present on the site, but it is only a metric and in no way a key factor in what we show to customers."
Apple also in the spotlight
The news about Amazon comes only a week after a similar story emerged about the Apple App Store.
According to The New York Times, Apple favored its own applications in searches, over apps developed by third parties, a movement that potentially led to the download numbers of Apple-owned applications growing considerably more than those of other companies. In some cases, the search terms will show up to 14 Apple applications before displaying one made by another person, with the exception of apps that had paid Apple for advertising.
The company acknowledged the problem and said it has adjusted its algorithm so that fewer Apple applications appear as results of the main searches within its App Store.
Antitrust laws
This type of news seems to add more to the fire of the controversy over the alleged monopoly of the market by large technology companies. What's more, some US lawmakers have already been considering rethinking antitrust laws specifically considering technology companies.
In July, the US Department of Justice announced that it will open extensive antitrust research on Facebook, Google, Amazon and Apple on the domain of Big Tech in Internet searches, social networks and retail sales.
As part of that investigation, the government said it planned to analyze "if the leading online platforms have managed to take over market power and how they are involved in practices that have reduced competition, stifled innovation or harmed consumers."
This is a news in development and we will keep you informed with the latest news.
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