E-commerce behemoth Amazon.com Inc. (AMZN) has decided not to sell any of the newer products from Alphabet Inc.'s (GOOG) Google smart home division Nest, as reported by Business Insider. The news marks a larger battle between the two FANG-member companies, not only in the high-flying smart home space, but also in the video, devices and services segments.
Late last year, after weeks of being unresponsive to Nest, Seattle-based retail giant Amazon told Google that it would not offer some of the smart home company's newer products, such as the Nest Cam IQ and smart thermostat, according to a Business Insider story published March 2. Amazon reportedly told Nest that the decision came from higher management, and that it had nothing to do with the quality of Nest's products, which had generated great reviews from consumers on the global platform. In response, Nest has decided to halt offering all of its products on Amazon once its remaining product inventory is sold.
Tech Titans' Fierce Competition
The latest development between Amazon and Google comes after Amazon announced last week its second-largest acquisition ever, dolimg out over $1 billion to buy doorbell maker Ring. The new smart home company will help Bezos' Amazon bolster its Alexa-powered hardware devices that combat Google's products and its artificial intelligence (AI) platform, Google Assistant. (See also: Why Amazon Is Spending $1B on a Doorbell Company.)
In what may be a retaliatory move, Google has blocked its YouTube native app from running on Amazon's Fire TV and Echo Show. The tech titans also compete in the digital ad business, where Amazon's latest push has threatened Alphabet's long-standing leadership position, as well as in the cloud computing business. Amazon Web Services (AWS), which launched over a decade ago and secured a whopping 45% year-over-year (YOY) growth rate in the most recent fourth quarter to $5.1 billion, is the clear market leader, while Google lags behind in third place behind Microsoft Corp.'s (MSFT) Azure. (See also: Amazon Market Cap May Cross $1 Trillion in a Year.)