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Related: About this forumU.S. Government Files MAJOR Tech Lawsuit with MASSIVE Implications - Talking Feds
The Federal Trade Commission and 17 states have filed an antitrust lawsuit against Amazon, alleging that the company's tactics have prevented rivals from competing with the online retailer.
The result, says the FTC, has been higher prices for consumers. The FTC is seeking an injunction against Amazon's "unlawful conduct." Amazon argues that it has actually been beneficial to consumers, offering low prices and good products. - 09/27/2023.
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U.S. Government Files MAJOR Tech Lawsuit with MASSIVE Implications - Talking Feds (Original Post)
Rhiannon12866
Sep 2023
OP
Here are a few more facts from The Atlantic. Amazon has made much more money than it has
ancianita
Sep 2023
#2
Holding tech monopolies accountable for shutting down small business is overdue.
ancianita
Sep 2023
#4
2naSalit
(92,837 posts)1. It's about itme.
He took the walmart model to the internet and now it's hard to get away from them. If they can't milk you for everything, they buy you.
ancianita
(38,624 posts)2. Here are a few more facts from The Atlantic. Amazon has made much more money than it has
been beneficial to consumers, a distortion of the reality for 3rd party retailers that pay for ads but get few to no buyers -- that is Amazon's monopoly suppression of rivals, profit at the expense of retailers and consumers -- that the FTC is asked to remedy.
https://www.theatlantic.com/technology/archive/2023/09/amazon-shopping-experience-decline/675472/?utm_source=copy-link&utm_medium=social&utm_campaign=share
Last year, nearly 60 percent of units sold on Amazon came from third-party sellers rather than from Amazon itself. Want to set up a booth? Theres a nominal monthly fee to reserve the space. From there, though, the charges add up quickly, according to a report from the ecommerce-intelligence firm Marketplace Pulse.
Amazon takes a cut of every transaction, typically about 15 percent. For front-and-center placement, youd better pay for one of those sponsored slots. According to the FTC, advertised products are 46 times more likely to get clicks. Call it another 15 percent of revenue. Oh, and if you want to qualify for Primeand if you want any shot of making a sale, you do want to qualify for Primeyoull need to use Amazon to fulfill your orders. Thats another 20 to 35 percent off the top. All of a sudden, half of your revenue is in Amazons coffers.
Amazon itself has reported that all of those fees amount to a big business; the revenue generated from them has tripled since 2017, totaling $117.7 billion last year alone. But although its been great for Amazon, it hasnt been great for consumers. When sellers are nickeled-and-dimed, not a lot of savings are left to pass on to you.
Amazon denies that it squeezes its third-party sellers at the expense of shoppers. The FTCs allegation that we somehow force sellers to use our optional services is simply not true, David Zapolsky, Amazons general counsel, wrote in a lengthy response to the charges. Sellers have choices, and many succeed in our store using other logistics services or choosing not to advertise with us.
That is technically true, but in a world where so much of online retail runs through Amazon, choice is an illusion. Dare to offer a cheaper product elsewhere online, and Amazon might bury your listing on its platform. A heavily redacted portion of the FTC suit claims that the company deploys a sophisticated surveillance network of web crawlers that constantly monitor the internet for such sellers. (In his response, Zapolsky says that the FTC has it backwards and that the company doesnt highlight or promote offers that are not competitively priced.)...
...Now that it extracts billions each month from those sellers, it can afford to ignore those customersor at least prioritize them less. Amazon gets paid by all of its vendors, no matter which products go in our cart.
Shoppers are not privy to any of these machinations while browsing Amazon. We cant know which third-party sellers have been banished to the shadow realm, or how tightly their margins are squeezed. Even knowing this might not get us far, considering how entrenched Amazon is now in American life.
Amazon takes a cut of every transaction, typically about 15 percent. For front-and-center placement, youd better pay for one of those sponsored slots. According to the FTC, advertised products are 46 times more likely to get clicks. Call it another 15 percent of revenue. Oh, and if you want to qualify for Primeand if you want any shot of making a sale, you do want to qualify for Primeyoull need to use Amazon to fulfill your orders. Thats another 20 to 35 percent off the top. All of a sudden, half of your revenue is in Amazons coffers.
Amazon itself has reported that all of those fees amount to a big business; the revenue generated from them has tripled since 2017, totaling $117.7 billion last year alone. But although its been great for Amazon, it hasnt been great for consumers. When sellers are nickeled-and-dimed, not a lot of savings are left to pass on to you.
Amazon denies that it squeezes its third-party sellers at the expense of shoppers. The FTCs allegation that we somehow force sellers to use our optional services is simply not true, David Zapolsky, Amazons general counsel, wrote in a lengthy response to the charges. Sellers have choices, and many succeed in our store using other logistics services or choosing not to advertise with us.
That is technically true, but in a world where so much of online retail runs through Amazon, choice is an illusion. Dare to offer a cheaper product elsewhere online, and Amazon might bury your listing on its platform. A heavily redacted portion of the FTC suit claims that the company deploys a sophisticated surveillance network of web crawlers that constantly monitor the internet for such sellers. (In his response, Zapolsky says that the FTC has it backwards and that the company doesnt highlight or promote offers that are not competitively priced.)...
...Now that it extracts billions each month from those sellers, it can afford to ignore those customersor at least prioritize them less. Amazon gets paid by all of its vendors, no matter which products go in our cart.
Shoppers are not privy to any of these machinations while browsing Amazon. We cant know which third-party sellers have been banished to the shadow realm, or how tightly their margins are squeezed. Even knowing this might not get us far, considering how entrenched Amazon is now in American life.
Rhiannon12866
(222,500 posts)3. Thanks so much!
I often check out Harry Litman's legal discussions, but this was the first I'd heard of this one. Yikes!
ancianita
(38,624 posts)4. Holding tech monopolies accountable for shutting down small business is overdue.
I hope the FTC continues against the rest of the MAGA monopoly -- Microsoft, Amazon, Google, and Apple -- so big that they are generally indifferent to trump's maga cult.