As governments seem slow to action, would coordinating consumers shopping help combat the monopoly power of some industry? For example, having an app that notifies you to try and buy from a competitor like walmart for a few days to pressure amazon into bargaining?
Amazon Is a Monopoly
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Re: Amazon Is a Monopoly
#42How we actually define a company to be a monopoly seems to be somewhat arbitrary? I agree that Amazon engages in anticompetitive behaviour but I'm not sure that it can control prices or exclude competition to that extent? I mean every company can affect that, at what point does it become problematic?
Amazon very often competes directly with sellers on the Marketplace, and often undercuts them on price.
There are products they sell below the purchase cost, sometimes below manufacturing cost. You can't compete with that unless you have piles of money to burn.
They sell at a loss until they shake everyone loose from a product, then dominate all sales of that products on the Marketplace, raising prices to profitability when they feel like it.
Don't forget they get all product sales information and statistics from every seller on the Marketplace - basically all the market research necessary to pick only "winner" products to sell. Then, when they feel like it, they require sellers to produce original invoices proving purchase of the items. These invoices conveniently contain all necessary information for Amazon to start buying the items directly themselves so that they can sell the item at a loss until you can't compete anymore, leaving Amazon as the sole source for the product.
Wanna be part of Vendor Central - selling directly to Amazon? They dictate the pricing and strong-arm you into selling exclusively to them in many cases. There is no negotiation - there is no adjusting pricing based on quantity ordered. And as much as people might want to think Amazon just buys enough quantity to get what they want - they don't. They just tell you what it will be.
> or exclude competition to that extent?
They can ban you from their Marketplace (the largest consumer Marketplace in the world) at will, with little to zero recourse on your part, via an opaque "Seller Performance" team that only responds to email, sometimes, and provides vague responses to what policies you might have broken.
That is, if you somehow get the eye of the Seller Performance team upon you. The reasons they go after certain sellers and leave others alone are as mysterious as the team behind the decisions.
Re: Amazon Is a Monopoly
#43As governments seem slow to action, would coordinating consumers shopping help combat the monopoly power of some industry? For example, having an app that notifies you to try and buy from a competitor like walmart for a few days to pressure amazon into bargaining?
Wouldn’t that kind of behavior make a company seem less like a monopoly, and extend the time to government intervention?
For example, imagine if amazon caves to the consumer group and makes toothpaste $1. Then suddenly the other sellers of toothpaste all charge $1. That would show amazon had pricing power over the market and that amazon is in fact a monopoly. Further it would show that amazon was using it's monopoly power to gain excess profits.
Note: I'm not an expert in economics and have a habit of being wrong.
Re: Amazon Is a Monopoly
#44As governments seem slow to action, would coordinating consumers shopping help combat the monopoly power of some industry? For example, having an app that notifies you to try and buy from a competitor like walmart for a few days to pressure amazon into bargaining?
And why would consumers coordinate against a company that is benefiting them with lower prices, great customer service, and insanely fast shipping now (I live in a small town of 40,000 - 3 hours from any major metropolis and get 1 day shipping)? Honestly I'm pretty impressed how such a massive company still seems to do a majority of their customers good, without even making them pay more. I'd say most of the people I…
Also, such collective bargaining could be used to bargain with companies other than amazon.
Re: Amazon Is a Monopoly
#45Anyways, this is just the hip thing of today. How about making a service better than Amazon? No that's impossible?? Well you can bet there are a million people trying right now so there are and will be plenty more alternatives.
Re: Amazon Is a Monopoly
#46How we actually define a company to be a monopoly seems to be somewhat arbitrary? I agree that Amazon engages in anticompetitive behaviour but I'm not sure that it can control prices or exclude competition to that extent? I mean every company can affect that, at what point does it become problematic?
> I'm not sure that it can control prices Amazon very often competes directly with sellers on the Marketplace, and often undercuts them on price. There are products they sell below the purchase cost, sometimes below manufacturing cost. You can't compete with that unless you have piles of money to burn. They sell at a loss until they shake everyone loose from a product, then dominate all sales of that products on the…
If Amazon can actually compete with you in a given product niche, then you're not bringing any value to the table (since they own the customer relationship, the fulfillment, the logistics, etc.), so why do you deserve to make money? There are a gazillion product categories on Amazon. There's no way they can bring products to market in all of them. They focus their attention on markets where brand differentiation isn't very important. Usually those markets are that way because what consumers care about is price, convenience, and surpassing some minimum level of quality. Those are the spaces where Amazon puts forward their own product. And if your livelihood is tied to being a relatively generic brand in a product category where consumers really only care about convenience and price, then you need to find a different way to make it in the world.
Re: Amazon Is a Monopoly
#47Earlier quoted context omitted.
I remember reading about an anti-trust case against Microsoft in the 90s since they included Microsoft Explorer with the OS. They were forced to separate the two, but Chromebook does the same thing without consequences. The rules for Antitrust keep changing and companies are integrating vertically and horizontally quickly before the law catches up.
>Chromebook does the same thing without consequences It's not the same at all. Microsoft were forced to unbundle IE from Windows because they were using their market dominance in one area (operating systems) to give themselves an artificial advantage in another area (web browsers). This bundling shielded IE from competition and squeezed other players out of the web browser market. Apple are within their rights to bun…
Re: Amazon Is a Monopoly
#48Earlier quoted context omitted.
It is not as simple as you make it out to be. United States v. Microsoft Corporation, 253 F.3d 34 (D.C. Cir. 2001),[1] was a noted American antitrust law case in which the U.S. government accused Microsoft of illegally maintaining its monopoly position in the PC market primarily through the legal and technical restrictions it put on the abilities of PC manufacturers (OEMs) and users to uninstall Internet Explorer and…
“The issue central to the case was whether Microsoft was allowed to bundle its flagship Internet Explorer (IE) web browser software with its Windows operating system. Bundling them is alleged to have been responsible for Microsoft's victory in the browser wars as every Windows user had a copy of IE. It was further alleged that this restricted the market for competing web browsers (such as Netscape Navigator or Opera)…
ChromeOS doesn't have a dominant position in the operating systems market, so there's no case to answer - you can't exploit dominance that you don't have. Android does have a dominant position in the mobile OS market, so Google are being forced to unbundle Chrome and Google Search from Android.
https://www.nytimes.com/2018/07/18/technology/google-eu-andr...
Re: Amazon Is a Monopoly
#49Earlier quoted context omitted.
And why would consumers coordinate against a company that is benefiting them with lower prices, great customer service, and insanely fast shipping now (I live in a small town of 40,000 - 3 hours from any major metropolis and get 1 day shipping)? Honestly I'm pretty impressed how such a massive company still seems to do a majority of their customers good, without even making them pay more. I'd say most of the people I…
There wouldn't be! However, if your assumptions that consumers are all happy with amazon are incorrect and there are things they would like changed at amazon then there would be an advantage to collective bargaining to combat amazon's monopoly power. Also, such collective bargaining could be used to bargain with companies other than amazon.
Re: Amazon Is a Monopoly
#50Alphabet does absolutely the same but have more power in advertising & page ranking plus collects petabytes users data using Chrome browser and Android platform.
Walmart, Google Clouds, Azure are alive and still grows up, so this article use over-dramatic effects like TV show.