Alphabet Inc (NASDAQ:GOOGL) subsidiary held a closed door unveiling of its smart speaker called Google Home. Alphabet aims to make sure that vendors who support the Echo will not get access to Google Home.
This means that Google might me pulling a fast one on Amazon Echo vendors in a move that can be termed as anticompetitive. However, Google is within legal scope because Section 1201 of the DMCA indicates that vendors who change configuration without authorization will be committing an offense punishable by law. This means Google could set the commercial preference such that devices support the Amazon Echo or the Google home smart speaker but not both.
The move by Google highlights its intentions to beat Amazon in digital assistant technology. The company believes that it can overthrow Amazon from its lead by introducing a series of offerings that it hopes will attract customers. Professor Scott Galloway who specializes in marketing at the Stern School of Business in New York believes that Amazon is the accidental winner of the competition.
“Amazon got there first, which is superimpressive, and it has been a huge hit,”stated Professor Galloway.
Despite the fact that Amazon’s impressive lead, Google believes that it can still take over if the vendors are in its favor. Google also has a few other tricks and advantages such as its superior expertise in language processing. Whether the Google Home platform will be as iconic as the Amazon Echo or better will depend on how good Google’s new product will be, compared to the Echo.
So far it has been revealed that the Google Home will also work as a Cast sender so that it will have media playback capabilities. This means users can tell the smart speaker to launch YouTube.
Alphabet stocks closed the recent trading session at $804.06, an improvement of $1.42 or 0.18% compared to the closing price in the previous session.