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FTC sues Amazon for illegally maintaining monopoly power

ftc.gov

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Re: FTC sues Amazon for illegally maintaining monopoly power

#81

Post by bogwog »

atlasunshrugged wrote: post #58

Merits of this specific case aside, I find it really interesting that the FTC is going after Amazon now. They have pretty limited resources (especially relative to a massive tech co which can pour money into litigation) and have to pick and choose their battles carefully... I have to admit I'm a little frustrated that they're choosing to go after Amazon, which yes, imo the case definitely has merits and they do shady…

The FTC is bringing a lot of cases, not just the few big ones like this that make headlines. The DOJ also brings antitrust cases.

See:

* FTC: https://www.ftc.gov/legal-library/browse/cases-proceedings

* DOJ: https://www.justice.gov/atr/antitrust-case-filings

Re: FTC sues Amazon for illegally maintaining monopoly power

#82

Post by ihaveajob »

In my opinion, Amazon needs to be split into at least 4 independent entities:

  - Online marketplace
  - Consumer products
  - Internet infrastructure
  - Delivery logistics
Similar to the three-tier distribution system for beer in most states (a brewer cannot be a wholesaler or a retailer). This makes it easier for smaller players can compete with the big ones on quality at least, if not price or recognition.

(Edit: format)

Re: FTC sues Amazon for illegally maintaining monopoly power

#84

Post by catiopatio »

jollofricepeas wrote: post #52

FBA seller here. A lot of mom and pop businesses (~$20 million) have been built on Amazon over the past 10 years. Most of us are in the $250k to $5 million dollar range. The impact of Amazon’s monopoly power is felt big time by us as we’re being squeezed with no place left to go online especially post-iOS change. Our second option used to be the Facebook/Instagram/TikTok to Shopify connection but with that being dead…

> post-iOS change

What is the iOS change you’re referring to?

Re: FTC sues Amazon for illegally maintaining monopoly power

#85

Post by tehlike »

crooked-v wrote: post #15
tehlike wrote: post #6

Earlier quoted context omitted.

At this point, they don't have to rank it higher and people would still buy it. They are like Kirkland of Costco most often.

Kirkland has a big difference here, in that it's a much better consistent indicator of quality than the Amazon house brands.

Probably true. But then feels like it's one or two tweaks away.

Re: FTC sues Amazon for illegally maintaining monopoly power

#86

Post by autoexec »

HDThoreaun wrote: post #16
_uhtu wrote: post #3

I'm honestly not sure how you could make the case that they aren't maintaining and abusing monopoly power. I mean they literally blatantly copy the designs of other companies who sell on amazon, then put their own results for their own products higher in search results than what they copied off of. It's incredibly blatantly anti-competitive.

Don't all grocery stores do this?

Grocery stores sell generic foods, but they put them on the same shelf as the name brand stuff.

They don't hide the original products in a darkened corner of the back room where no customer can see them. They don't shove their generic into your hand every time you reach for a name brand. Amazon can hide the real products from search, or push it to the bottom of results, while putting their own products at the top of search results even when you search for the brand by name.

Re: FTC sues Amazon for illegally maintaining monopoly power

#87

Post by taeric »

cj wrote: post #54
taeric wrote: post #20

Earlier quoted context omitted.

Examples? Because, by most evidence that I am aware of, they aren't actually doing that well? Certainly not bad. But not clear to me that they have any real online advantage now that other stores have online payment that they can use between them. I've certainly been far more willing to buy direct from brands for the past few years.

The examples are listed in the article. The last point is pretty damning if they can prove it. > Biasing Amazon’s search results to preference Amazon’s own products over ones that Amazon knows are of better quality. > Degrading the customer experience by replacing relevant, organic search results with paid advertisements > Charging costly fees on the hundreds of thousands of sellers that currently have no choice but…

First, disclaimer that I do not mean my post as a reason not to pursue antitrust concerns. By all means, look for them. If they are found, make rules about them.

That said, I have specific doubts. For one, search has always been crap on Amazon. I could believe they tried some of these tricks, but I confess I have my doubts they would execute on them well.

For second, some of this is standard BS that retail has just accepted. That is, bringing on "experts" from in the retail industry would almost certainly bias you in some of these directions. The standard contracts that retail stores have pushed for a long time are such that they absolutely should be curtailed. They can be good tools for small companies, but it is clear that as companies get larger, they amplify power imbalances.

Re: FTC sues Amazon for illegally maintaining monopoly power

#88

Post by htrp »

wordsarelies wrote: post #63
TonyTrapp wrote: post #22

Earlier quoted context omitted.

Often store-branded articles are in fact produced in the same factory as the original brand products. It's not quite the same.

It's going to come out that Amazon calls the manufacturers for their basics goods, sends them the leading competing item and has them make it with slightly less expensive components to undercut the cost of the competitor. It's so blatantly obvious if you've ever done a side by side in things like lamps, backpacks etc and other super simple designs.

> It's going to come out that Amazon calls the manufacturers for their basics goods, sends them the leading competing item and has them make it with slightly less expensive components to undercut the cost of the competitor.

They won't need to even call. Most FBA product listing inventory can be received directly from the factory (so Amazon knows exactly where it's made) and they can just go to the factory and offer to do 10x the volume for the exact same item (at a much higher discount).

Re: FTC sues Amazon for illegally maintaining monopoly power

#89

Post by lotsofpulp »

2023throwawayy wrote: post #65
travoc wrote: post #24

Earlier quoted context omitted.

Grocery stores are not a monopoly.

In Denver they are. I imagine other places too. https://kdvr.com/news/local/kroger-albertsons-king-soopers-s...

I do not see the purpose of excluding Walmart from "grocery store" when it sells the most groceries in the nation. Costco and Target are also sell huge amounts of groceries.

Re: FTC sues Amazon for illegally maintaining monopoly power

#90

Post by jonas21 »

etchalon wrote: post #48
HDThoreaun wrote: post #16

Earlier quoted context omitted.

Don't all grocery stores do this?

Not really, or, at least, not at the same scale. Staples (peanut butter, canned fruit, etc.) tend to have store brands, but grocery stores doesn't have a store brand version of the vast majority of popular products.

At my local supermarket, there is a store-brand option in basically every popular product category.

And I can't even recall visiting a major chain grocery store where this was not the case (at least not in the last 5 years).

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