Amazon antitrust concerns

[Kitchari]

Source: ProPublica

At a time when much of the retail sector is collapsing, Amazon is strengthening its competitive position in ways that could outlast the pandemic — and raise antitrust concerns.

“Amazon has the power to bury sellers and suppliers if they don’t comply,” said Sally Hubbard, director of enforcement strategy ". ... Amazon is able to cut off its competitors’ access to inventory by leveraging its monopoly power.”

As locked-down shoppers have flocked to buy food, medicine, cleaning supplies and personal care products on Amazon, the retailer has in turn upped its suggested inventory levels for many manufacturers that sell their products on its platform.

...This pattern makes it harder for Amazon competitors, such as grocery and discount chains that have remained open during the pandemic, to keep coveted items in stock. “Everybody in retail realizes there’s limited access to certain stuff, so you better get there first”

More at link [link:https://www.propublica.org/article/the-amazon-lockdown-how-an-unforgiving-algorithm-drives-suppliers-to-favor-the-e-commerce-giant-over-other-retailers|]

[2naSalit]

1. Worse than Walmart. ...nt

[Kitchari]

4. Agree

I avoid both

[Victor_c3]

2. I've been waiting for this to happen for the last several years

I’m not surprised at all.

The $$ billions Jeff Bezos has came from the businesses amazon destroyed and left in its wake.

Mega-retailers destroyed Main Street and now Amazon is destroying them. In the end, Bezos’ wealth was extracted from the mom-and-pop shops that existed decades ago.

[RB TexLa]

3. And Sears extracted it from dry good stores who purchased supply and hoped it sold

Sears let you order from a catalog and put it on the rail car to you as soon as they got your order.

It was much more efficient, anything that can be more efficient will be made more efficient.

[MineralMan]

5. The thing is that many other retailers are adopting the Amazon Model.

Walmart, Target, and others are selling items from independent businesses through their websites.

That will militate against antitrust action. Amazon got there first, and has cornered much of the consumer online shopping market, but others are using the same approach. That approach is how retailing will be done from now on, pretty much.

The legal arguments are already there for Amazon to use. They are not actually engaging in antitrust activities. They are creating an new method of marketing that is being widely adopted. That's a different thing.

[Kitchari]

6. That's an interesting point

This pandemic is a game-changer for so many of our norms (schools, churches, retail, hospitality, travel, etc.), and I sincerely hope we can change things for the better

[MineralMan]

7. I suspect this pandemic is the death blow to almost all malls.

They were already moribund, but now, they're finished, I think.

Even the Mall of America, which had to close its doors.

Traditional Retailing is pretty much done, I think.

[Kitchari]

8. Perhaps a death blow to many higher ed institutions, too

My husband is a college professor (near retirement), and there is a drastic defunding of state schools especially, because the states are strapped, not to mention the loss in tuition money

[crickets]

9. K&R for the post and the discussion.