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The FTC sues to break up Amazon over an economy-wide “hidden tax”

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Re: The FTC sues to break up Amazon over an economy-wide “hidden tax”

#271
post #85
post #42

Earlier quoted context omitted.

Just change the SKU of the product so they are "different". Big box stores do it all the time to reduce the probability of price matching.

Amazon is not a court of law and need not be bound by this technicality.

Ought to be bound by an actual court, though.

Re: The FTC sues to break up Amazon over an economy-wide “hidden tax”

#272

Apple, Google, Facebook, Amazon, break them all up. And for the love of crap, stop approving billion dollar mergers.

Highly fragmented markets are also bad for price discovery - so how do we know what size to have?

Re: The FTC sues to break up Amazon over an economy-wide “hidden tax”

#273
post #138
post #99

Earlier quoted context omitted.

Here are some possibilities (not claiming these are practical or a solution): The first is splitting Amazon-retail from their other products (Alexa, Ring, AWS, etc.) The second is splitting Amazon-logistics out. I'm not exactly sure how this would work, but it could be argued that Amazon logistics could operate standalone.

FBA as a separate business would be interesting for sure. It would separate out the value of Amazon marketplace from the value of outsourcing your order fulfillment logistics.

All I ever wanted was to be able to search "shipped and sold by Amazon" results only. If this is the heavy hammer needed to get to that end result, so be it.

Re: The FTC sues to break up Amazon over an economy-wide “hidden tax”

#274
post #154

Earlier quoted context omitted.

That's the thing people don't get about making competitors to Facebook, Twitter, and other centralized platforms as well. You don't need to boil the ocean in order to serve a single community. For example, Facebook started in Harvard and its value to everyone in Harvard was based on how many people in Harvard used it, not how many people in the world used it. Similarly, if a single product vendor and their customers…

You are correct, but note that one very key edge that Amazon used to as a competitive edge is no longer available to new entrants in the business. For the first 15 to 20 years of Amazon, they were able to be cheaper than their competitors due to the fact that sales tax only had to be collected in states where they had a nexus. This gave them a pricing advantage which drove more customers to them which they intelligen…

Not to mention the advantage of having investors willing to burn billions for a decade+ until you got into a dominant market position to finally become profitable. Not always easy to get access to that.

Re: The FTC sues to break up Amazon over an economy-wide “hidden tax”

#275
post #42

An excerpt from: https://pluralistic.net/2023/04/25/greedflation/ Amazon binds its sellers over to something called Most Favored Nation status. That means that sellers can't offer their goods more cheaply than they do on Amazon – even if it costs them (lots) less to sell in Target or direct from their websites. This means that every time a seller adds a dollar to their Amazon sale price, they have to add a dollar to…

Just change the SKU of the product so they are "different". Big box stores do it all the time to reduce the probability of price matching.

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Re: The FTC sues to break up Amazon over an economy-wide “hidden tax”

#276
post #233

Earlier quoted context omitted.

The US is strong on the doctrine that the law applies equally to people (legal entities) regardless of size / market cap. I don't think we'll ever see something like the EU's law that targets only large internet companies. It might even not fly on equal protection grounds. I think that in either Finland or Iceland people receive traffic fines that are a percentage of their income. They would never fly in the US.

That is why I didn't say it applies differently. I said it is enforced on a ranking that is based on ROI. And... it really has to be. There are almost certainly low key levels of bad practices in small shops. But it would cost more and take more out of the economy to enforce them than it is to just not care. Now, that bar is rising, of course. Things that used to not matter years ago are easily enforced today.

So your view is that we should enforce extremely strict laws arbitrarily and capriciously based on however the particular regulator or prosecutor feels about a given entity?

I can’t imagine how this could be abused.

Re: The FTC sues to break up Amazon over an economy-wide “hidden tax”

#277

Earlier quoted context omitted.

So, to be clear, you have no problem with Amazon writing their own laws and collecting their own taxes? Because that is what they are effectively doing.

If sellers were obligated to sell on Amazon that would be the case, but it's not, is it? Ironically, people complaining about this are exacerbating the issue. If sellers who actually cared left Amazon it would loosen Amazon's dominance in e-commerce.

I've often seen the complaint that developers think the law is purely strategic, like a computer, and if they can find a technicality then the law must follow through.

But that's not how this works.

It's technically true that fiber has competition if another ISP is offering dialup in the same area. No one in their right mind would agree that's actually a competitor in anything but name.

And so it is here.

If not selling on Amazon is an existential risk for your company, Amazon is effectively a monopoly, and THAT is what the law cares about.

Re: The FTC sues to break up Amazon over an economy-wide “hidden tax”

#278
post #42

Earlier quoted context omitted.

Just change the SKU of the product so they are "different". Big box stores do it all the time to reduce the probability of price matching.

Big box stores have a lot more leverage than a small seller on Amazon, who'll just get the "that violates our policies, we're nuking your business, no appeals" treatment.

Amazon are notorious among writers for nuking the accounts of Kindle Unlimited authors who have had their book pirated.

Apparently this violates the content monopoly KU is supposed to have.

Re: The FTC sues to break up Amazon over an economy-wide “hidden tax”

#279

Apple, Google, Facebook, Amazon, break them all up. And for the love of crap, stop approving billion dollar mergers.

Highly fragmented markets are also bad for price discovery - so how do we know what size to have?

We are so incredibly far from highly fragmented I don’t think that’s even worth thinking about at this stage

Re: The FTC sues to break up Amazon over an economy-wide “hidden tax”

#280
This is somewhat misguided. Unless it results in a very specific breakup, it won't be what consumers actually want from the market. A lot of what drives me to Amazon is shipping. Smaller retailers can't scale this at all, so what's needed is a company that just does the fulfillment side of things with Amazon-level speed.
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