The battle between two of the world’s largest tech companies just went to the next level. As explained by The Verge, Amazon will no longer offer Google’s Nest products once its current inventory runs out.
Reports show that Amazon contacted the Nest team late last year, informing them that it would not sell some of the new Nest products, including Nest Secure, Thermostat E and the Cam IQ. When Nest asked Amazon for a reason, the e-retailing giant said it wasn’t because of product quality but, rather, it was a decision that came from upper-level management.
While Amazon had decided not to carry some of the Nest products, the Nest team responded by saying that it would stop selling all of its products at Amazon. When Amazon’s current stock of Nest products is sold, it will no longer restock or sell them. The Nest team believes that Amazon should sell all or none of its products. With that said, some sources believe that third-party sellers could still sell Nest products on Amazon.
Founded in 2010, Nest Labs produces a wide range of smart products. The company’s first product was the Nest Learning Thermostat, which automatically changes the temperature settings based on the user’s schedule. The Nest Learning Thermostat also supports Wi-Fi connectivity, allowing users to control the climate inside their home from a smartphone or tablet computer.
In January 2014, Google acquired Nest Labs for an estimated $3.2 billion. Until February 2018, Nest Labs was run as a separate division of Google. Now, however, it’s run as part of Google’s hardware division.
So, why did Amazon decide to stop selling some of the Nest products? That questions remains open for debate though some market analysts believe that Amazon is trying to eliminate competition for AI and smart products. Amazon recently purchased Ring, for instance, for $1 billion, which it could use to develop new smart products.
This isn’t the first beef between Google and Amazon. The online retailer has refused to sell the Google Home smart speaker on its website, presumably because Amazon has its own smart speaker, the Echo.
Google has struck back at Amazon by removing YouTube from the company’s line of streaming TV devices, including the Fire TV, Echo Show and Echo Spot. According to Google, however, YouTube was removed because Amazon violated a contract and not because of the heated battle between the two companies.