How Google’s Deals with Brazilian Retailers Affected Amazon


Nov. 20 2020, Updated 12:59 p.m. ET

Google expected to beat Amazon in the smart speaker market

Amazon (AMZN) and Alphabet’s (GOOGL) Google are at loggerheads. Amazon halted the sale of certain Google hardware products, and Google responded by pulling its YouTube service from certain Amazon platforms.

The tension between Amazon and Google has been linked to the companies’ competing interests. Google is threatening Amazon’s dominance in the smart speaker market, and Amazon is threatening Google’s dominance in the digital advertising sector. According to Loup Ventures, Google is expected to overtake Amazon by 2022 to become the world’s largest vendor of smart speakers.

According to eMarketer, Amazon is steadily gaining share in the digital advertising industry where Google and Facebook currently control the lion’s share of the market. Google and Facebook combined are poised to attract 56.8% of total digital ad spending in the US in 2018.

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Google reportedly briefed Amazon’s competitors in Brazil

Google’s closeness with Amazon rivals could also be a source of the rising tensions between the two Internet giants. According to a recent Reuters report, Google briefed Brazilian retailers on Amazon’s strategies and helped them prepare to counter Amazon when it tries to expand in the country.

Amazon views Google as keen to curb its influence

Google has been helping traditional retailers such as Walmart (WMT) and Target (TGT) in their competition with Amazon. Through its Google Express online mall, Google assists retailers such as Walmart, Target, Costco (COST), and Kohl’s (KSS) in reaching more online shoppers. 

More recently, Google introduced Shopping Actions, a program that allows retailers to display their products on different Google platforms. 


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