Both Alphabet, the parent company of Google, and Amazon, have both reported huge rises in revenue during the last quarter.
Alphabet has reported that advertisers were putting more money into YouTube and search services. Amazon, meanwhile, was hoping for a bit more in regards to profit, as it has been focused on speeding up delivery times.
Both companies have been under scrutiny thanks to market dominance.
Amazon has begun to shift away from the buying and selling game, and instead, working on being more engaging with the online merchants who sell on the site. Additionally, the company has focused on delivery, and Prime, it’s premier service, is now doing one-day delivery in most cases. This, according to Amazon’s founder and chief executive, Jeff Bezos, has been accelerating the growth of sales.
Amazon’s profit for the quarter, which was $2.6 billion, was below expectations, and they are expecting a slight slip in this quarter, too, thanks to more investments back into the company.
Alphabet, meanwhile, saw its profits triple compared to the same time last year, and revenues rose a full 19 percent. Google’s chief executive, Sundar Pichai, said that new technology, such as AI, and it’s traditional offerings including Maps, were having a positive impact on growth.
With all of this comes attention from regulators, who are following these huge tech companies very closely. The EU has given Google three fines over the past two years over issues with competition, and the city of Brussels, in Belgium, has started an investigation into Amazon and it’s use of data in the marketplace.
Here in the US, the Department of Justice just opened an investigation of major tech firms, too. Though the agency hasn’t said what firms it is looking for, it’s highly likely that Amazon and Alphabet are included. The DOJ is looking to see if these companies are using business practices that have reduced competition, stopped innovation, or harmed consumers in other ways.