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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”

#481

Earlier quoted context omitted.

You can’t open source it but the government could nationalize it and make it a benefit to small businesses everywhere without the anti competitive profit seeking motives of a private business controlling it.

Expropriation is the first step to destroying the thing. There no reason for unbelievably good customer service if you get paid by taxpayers regardless of outcome.

The employees at my local usps are pretty good at their jobs. But they are all Korean ladies.

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

#482
"Fortunately, our work on the secrecy of the Google trial is paying dividends. Here's FTC official Douglas Farrar arguing that the commission will push to get rid of the redactions:

We share the frustration that much of the data and quotes by Amazon executives in the complaint that describe what we allege is monopolistic and illegal behavior is redacted. Amazon has 14 days from the entry of a temporary sealing order to provide legitimate justification for preventing this information from being revealed. We do not believe that there are compelling reasons to keep much of this information secret from the public."

If Amazon has done nothing wrong then why so many redactions. It might succeed in keeping the facts sealed away from public view but it only raises more questions.

It sounds like Amazon is a heavy source of bots on the web if they need to continually scrape millions of websites to monitor pricing. Perhaps someone can explain how that works.

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

#483

Earlier quoted context omitted.

> Amazon responds that it is within its rights to not promote uncompetitive offers Sounds to me like Amazon has found a loophole in the law. It agrees to list anything for sale, with no anti competitive conditions, but then only recommends customers buy things that it believes are in the customers best interests. The FTC will struggle to argue that is illegal. Amazon can't be compelled to recommend stuff. (free speec…

>It will be hard for the court to argue that amazon should start recommending more expensive items to consumers, just to push consumers into looking for a cheaper platform. Yes, 100% this. That's why I said that this lawsuit has a major remedy problem. Even if the court agrees this is anticompetitive, how do you fix it? https://news.ycombinator.com/item?id=37767994

Amazon isn’t recommending “more expensive” items to consumers, it’s offering different products. It should be recommending the best product for the user at the price it can offer the product at.

The fact that the product exists $1 cheaper on another site does not make it not the best recommendation for the customer’s need. If I search “tablet” are you saying I should be recommended a cheap off brand tablet promoted to me because Amazon has the cheapest price or an iPad even though I can buy an iPad on apple.com for $10 cheaper?

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

#484

Earlier quoted context omitted.

According to the FTC's lawsuit, Amazon no longer binds its sellers with a Most Favored Nation clause. Instead, Amazon now will refuse to promote an offer in its "buy box" space if it detects a lower price for that good on another website. The FTC alleges that this simply reconstitutes the MFA since most sales on Amazon take place from the buy box. Amazon responds that it is within its rights to not promote uncompetit…

This is a good point and your comment below ( https://news.ycombinator.com/item?id=37768419 ) highlights it well. What people don't realize is that this is in the interest of the consumer. I used to work at Amazon (although not on any of these teams) so that's probably why I know that "see all buying options" means the price is not competitive. As a consumer I value this. Amazon scours the web to make sure their prod…

How does an extra click help the customer? Unless the customer used to work at Amazon and specifically knows that "see all buying options" means "scour the internet to find a better price, it should be easy this time".

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

#485

While they are at it they should also go after the credit card companies. They have managed to extract a 2-3% tax on most retail transactions. There is really no reason why the fees should be that high in the age of electronic transactions.

Also, ATM fees should be capped at 1% of the money withdrawn. And I've noticed lately that I'm getting hit by two ATM fees -- one from the ATM machine, and another from my bank, which is more than twice as much as the ATM machine's fee. I end up paying $3.50 to withdraw money from an ATM.

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

#486

Earlier quoted context omitted.

You are confusing unrelated things. As used here, "MFN" refers to a common type of term found in standard business contracts that have nothing to do with the WTO or the government. This discussion is about Amazon's use of MFN terms when contracting with ordinary domestic businesses.

That's not what you used the term for. If there is conflating going on, it started with your post.

Nothing I wrote suggests your interpretation. The US government uses MFN terms in domestic vendor contracts in the same way Amazon does. This was plainly obvious in context, since the term was introduced in relation to Amazon. It has nothing to do with international trade and nothing I wrote implied that, "MFN" is a standard term if art in ordinary vendor contracts.

You are the only person that introduced the notion that this had anything to do with the WTO, international treaties, etc.

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

#487

Earlier quoted context omitted.

The weekly sales flyers that stores offer was/is another way around this as well. Some of them have coupons to specific items that are not allowed to have sales prices lower than the MSRP. Very few people are as draconian about their prices as Apple, but others sure wannabe.

> Some of them have coupons to specific items that are not allowed to have sales prices lower than the MSRP. That's actually kinda disappointing. I'd always assumed those flyers were pieces of trash (at best, something I'd need to put in a recycling bin) which I don't want but now I'll be more tempted to take them when offered on the chance that I otherwise accidentally avoid the sales price. It's still good to know…

Coupons are a longstanding price discrimination technique. If somebody doesn't want to pay full price, you might still get their custom with a voucher. You don't want to make the discount too easy to find though, as you will miss out on revenue from people who were willing to pay full price.

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

#488

Earlier quoted context omitted.

I disagree. Demanding the lowest price does not harm consumers. Overstock, Wayfair, Walmart and others do the same thing. The result is the lowest price for a given product on all sites. This is unquestionably good for consumers.

Most disagrees with you here, including those who makes the laws and the courts.

That's a nasty way of arguing against his or her point. And "most" in this comment thread seem to have no idea of how sales and economics work. But go ahead, make a government Amazon like everybody is suggesting here. It's not like it's been done before? Government controlled production and distribution of goods, seems like a fresh new idea...

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

#489
post #14

Earlier quoted context omitted.

You pay these fees so the products aren't cheap. And Amazon (using its size) made it impossible for sellers to sell their products cheaper elsewhere. This is anticompetitive.

> You pay these fees so the products aren't cheap. Except they are, otherwise consumers wouldn't use Amazon. Whenever I want to buy anything, I check Amazon first. 9 times out of 10 it's the same price as every other retailer with the added benefit of free shipping and free returns. If that wasn't the case, I would have no reason to use Amazon.

You don't realize that the price could be cheaper.

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

#490

What magic does apple work behind the scenes to avoid scrutiny? If we're talking about hidden taxes, surely the only app store allowed on 50% of smart phones taking 30% is a hidden tax? And if not that, surely visa/mastercard's fee is it's own hidden tax?

What's the android version of Amazon, again? These are clearly different scales of manipulation. On one hand, you have a brand controlling their own luxury devices, and on the other, you have a brand controlling literally everything else.

Walmart? Every grocery store? Its hardly required to shop at Amazon if your point is it's a true monopoly, I'm not sure what domain you're trying to say they're the only competitor in.

Prioritizing your own brand has been the norm at every grocery store I've ever been to.

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