Live data from Hacker News

FTC sues Amazon for illegally maintaining monopoly power

ftc.gov

821–830 of 930 posts

Re: FTC sues Amazon for illegally maintaining monopoly power

#821

Earlier quoted context omitted.

Amazon charges exorbitant fees to Marketplace sellers and adds to the cost of everything sold on Amazon. Are you aware of who is the seller every time you buy something? When the seller is not Amazon, do you know how much of the price is going directly to Amazon? Is it worth it for what Amazon provides you? In my category Amazon takes 15% of every sale. That’s even true for FBM where Amazon never lays eyes or hands o…

Is there something that says you can't make a special SKU with minor changes to the box or badging that you only sell on your website?

I might be able to fly under the radar but I’ve already experienced having my products flagged as having too-high prices. It’s too risky.

Re: FTC sues Amazon for illegally maintaining monopoly power

#822
post #471

Earlier quoted context omitted.

You make a good point, but I think the parent point is true as well. You still have people actually producing work, unable to compete on these platforms where Amazon will literally make a copy of their product at a lower price. This is the result of commoditizing 'starting a business' to the point of near-worthlessness in the bottom 50%+. Like you say, I don't value the businesses that simply re-sell re-labeled produ…

Is drop shopping the kind of business to fight for supporting? That’s all this is.

The thing is, an importer adds real value to their clients by selecting the products, taking the risk of moving the goods, etc.

You are right that the current state of dropshipping is an abomination, and there's not much left to save of that job. But the reason for that is that more and more of the job and benefits from that business are being taken by Amazon, and the sellers are left with that doesn't really justify their position.

What they're left with - being a plausible scapegoat and discovering new products - is not their choice, it's the part that is not profitable to Amazon.

Re: FTC sues Amazon for illegally maintaining monopoly power

#823
post #686

Earlier quoted context omitted.

I read both - I don't see anything odd here. Seems like like the thesis of the FTC's case includes the natural continuation of some of Lina Khan's ideas, plus additional focus on the Amazon Seller economiy.

The abstract of the link is that Amazon’s monopoly power has manifested itself in _under_ pricing products. The FTC claim is that Amazon _over_ prices products. They are in direct opposition.

Is it not possible that they overprice products and services to merchants while under pricing products to consumers?

Re: FTC sues Amazon for illegally maintaining monopoly power

#824
post #810

Earlier quoted context omitted.

My main rebuttal is largely that Amazon has been going to shit, oddly. They claim that search is getting worse on Amazon. And that the old "organic search results" are worse now. I agree it is getting worse. I disagree that it was ever good. Largely the problem is one of volume there. They have claims that some algorithms push sellers down. I actually am interested in seeing that explored more. My gut is that it is j…

> I agree [search] is getting worse. I disagree that it was ever good I disagree with this disagreement, and can see it getting worse, and given it seems the search was intentionally punishing sellers for anticompetitive reasons, I'd be interested in seeing if Amazon can present a convincing explanation otherwise. > They have claims that some algorithms push sellers down. I actually am interested in seeing that explo…

We'll see. I don't know how to agree with search ever being good. I remember back in 1999 (literally) getting the wrong book on searches. And back then, it was only searching on books. Today, there is more that you are searching through, such that it is almost expected that results will be worse. And it will only get worse.

And note that I am making no real defense of Amazon here. It is frustrating to me that searching "PS5 controller" is largely results that I would not at all feel comfortable buying, at this point. What searches do you remember, "back in the early days" that were good?

And, really any search will reveal the actual "difficulty" here is that there is just too many hits. But can you really call out any of those as bad as long as you allow outside vendors? I'm not convinced. I don't want to buy from UPPERCASE vendor anymore than many folks do, but I see my purchase history has a ton of them.

So, again, this is a criticism of the case. They do pick apart many things that seem to have gotten worse. They rest a lot of their case on observations that Amazon themselves were chasing. Largely that the buybox is a huge driver of purchases. What they leave off is all of the behind the scenes that goes into that buybox. Most of it, unsurprisingly, is going to be based on costs to Amazon. This case is looking for twirling mustache villains looking to rob small vendors. But it is against a backdrop of an unusually large number of vendors that are all continuing to make money. In a field where Amazon is trying to optimize shipping and warehousing costs. Is it getting harder for people to do so there? Almost certainly. Is Amazon specifically retaliating against sellers? Maybe, but my gut is not likely.

I do appreciate the counter view that this is, in fact, a strong case. I have not seen evidence that convinces me of that. You keep saying it is "in the case," but that is our disagreement. The case is largely discussing the difficulties of being an FBA seller. One that many successful FBA sellers would be more than happy to tell you about. They have basically no evidence of Amazon intentionally mistreating any particular seller.

They have a lot of redacted comments about Amazon's analysis of their platform. But no hints that Amazon intentionally pushes sellers down. They have tons of details that having enticing offers at the top and in the buybox would be good for Amazon. Nothing hinting that they are trying to make it harder for any particular seller.

Even the anecdotes you will find online is that managing FBA is a full time job. Try managing a booth at your local farmers market. Just managing the booth is itself a job that you should probably look into getting specialized help for. This is no different.

Re: FTC sues Amazon for illegally maintaining monopoly power

#825

Earlier quoted context omitted.

Amazon is basically allowing sellers to carry all the risk while product testing and marketing a product. If it does well enough, Amazon can use the same manufacturer and release a branded "Amazon Basics" version that pops up in the same search for the same product but cheaper as Amazon doesn't have to pay someone else $112 for the listing and warehousing, and the original seller that did all of the actual "work" (as…

Yes, but the argument is that drop-shippers aren’t really producing any value. It’s not like they’re putting banners over their product pics saying “hey, you know you can buy this exact same product for like half the price on alibaba if you’re willing to wait a couple more weeks for it right?”. I don’t like Amazon consolidating this much power either but if they can push you out of your business that easily you weren…

> if they can push you out of your business that easily you weren’t the critical component of it.

Alternative suggestion: modern monopolistic corporations are disproportionately powerful. If they can topple a country to sell bananas cheaper, they sure as hell can kill a small business, no matter how relevant that business is.

Re: FTC sues Amazon for illegally maintaining monopoly power

#826

Earlier quoted context omitted.

That is not competition working as intended. So you can have pro-competitive behavior (lower price) that balances out anti-competitive behavior (crushing nascent competitors through market manipulation or cartels); That doesn't mean everything you do is above board. It means that while the lower prices are there, a certain amount of anti-competitive behavior has been acceptable because the net outcome to consumers is…

> So you can have pro-competitive behavior (lower price) that balances out anti-competitive behavior Defeating competitors with lower prices is pro competitive, not anti competitive. It is exactly what competition is supposed to do. > why do the other anti-competitive behaviors? Notice how I made no comment on anything to do with vague "other behavior". Instead I was only directly responding to the idea of "undercutt…

While that was the original comment you responded to, the thread we were on was this one: https://news.ycombinator.com/item?id=37668676

>> So you can have pro-competitive behavior (lower price) that balances out anti-competitive behavior

>Defeating competitors with lower prices is pro competitive, not anti competitive.

I already acknowledged that lower prices is a positive, not sure why you repeated that. If that's your only point, then yes - you are right, lower prices is a positive for consumers. It's a balance, though; lower prices don't mean there is no anti-competitive behavior happening.

Undercutting competitors and copying them is often fine, though the process by which a competitor is undercut can be anti-competitive itself and have structural consequences that are anti-competitive, and copying competitors is obviously restricted by patent and copyright. It's not a blanket 'this is the whole purpose of competition' thing.

>Notice how I made no comment on anything to do with vague "other behavior"

It's not vague - it's laid out in the indictment. I get that you don't want to respond to it and only want to prove that lower prices is good, but that conversation ended, we all agree that lower prices for consumers is good. The question is how good. Good enough to balance the bad behavior? The FTC clearly thinks otherwise.

Re: FTC sues Amazon for illegally maintaining monopoly power

#827

Earlier quoted context omitted.

You're completely ignoring my point. The journalist was rewarded with murder. I feel like you're not actually considering what I'm saying and I'm exiting this conversation.

Your point is that because one journalist was killed for a story that no other journalist could ever possibly be rewarded for breaking a huge story?

You know how there is a principle during debate where you should treat your opponent's argument charitably, by taking their meaning in the best possible way?

You just did the exact opposite.

Re: FTC sues Amazon for illegally maintaining monopoly power

#828

There are always so many blindly pro-business comments on stories like this, like when the Theranos stuff was happening, people were saying "come on, she was just pitching big returns and innovations like any start-up does," ignoring the difference between pitching and straight-up lying or deliberately misleading investors about current facts. Similarly, it seems like many commenters are defending Amazon not based on…

> There are always so many blindly pro-business comments on stories like this Where? All of the comments above yours are anti-Amazon. Regardless of which “side” is “right,” I don’t think you can argue that HN has a blind pro-big-business slant.

Maybe not a "blind" slant, but there is a slant nonetheless. I frequent programming communities on twitter, reddit, etc. and HN is consistently the place with the most sympathy for corporations.

(In my experience it's also the community that has the most anti-intellectualism/distrust of science as well, but that's a discussion for another time)

Re: FTC sues Amazon for illegally maintaining monopoly power

#829
post #781

Earlier quoted context omitted.

As someone living in germany: We don't have a three tier system. But we have literally thousands of breweries selling better beer at waaay lower prices than in the US. So your three tier systems sucks...

> we have literally thousands of breweries selling better beer This may have been true a decade ago, but today there is an entire microbrewery scene in the US where there are hundreds of them inside individual states. Better is subjective, sure, but any kind of beer you get in Germany you will find a few dozen US microbreweries making the same.

If you like expensive, over-hopped IPA made with mediocre ingredients and specially bred hops that are so potent they (kinda) overpower the taste of beet sugar and inferior malts, then America is a great place to pay more money for beer.

There some genuinely good beers around, but they are few and far between and WAAY more expensive than great beer in Germany. And from elsewhere in the thread, it sounds like our 3-teired system does indeed majorly suck for microbreweries. It may be a big part of why they have to cheap out on ingredients and try to cover it up with palette-dominating hops in order to turn a profit and stay afloat.

Re: FTC sues Amazon for illegally maintaining monopoly power

#830

Earlier quoted context omitted.

In efficient market every business must have razor-thin margins, otherwise competitors squeeze into it. Good fat margins are a result of an ineffective market.

So Amazon making good fat margins on every small business that sells on Amazon is demonstration of an ineffective market. And hence why the FTC are stepping in.

Comparing to Apple, Amazon margins are thin.
Post reply on HN