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A 29-Year-old shakes up the monopoly of Amazon

Amazon expected to a shiny Christmas business. 125’000 seasonal employees work around the clock in hundreds of distribution centers and warehouses in the United States and ensure that the Internet giant will probably make more sales than Facebook, Google and Twitter. Unlike you, Amazon was able to avoid the critical eye of the Antitrust overseer, to a large extent.

But this is beginning to change. One reason the new democratic house of representatives, has promised a tougher action against the dominant groups.

even More than the policy, a 29-year-old jurist is responsible for ensuring that the EU competition enforcement now, the American authorities, the market power of Amazon to a topic. Lina Khan roused in the last few months with their study, "The Antitrust Paradox from Amazon" the monopoly of experts in the country, as they interpret according to their view of antitrust law to unilateral. Amazon has become with the expansion into new markets, in fact, a nationwide supply companies that need but miss the infrastructure of their own to oust the competitors, she writes. Khan compares Amazon with the monopoly of the railroad barons who controlled over a hundred years of the American West, and a nearly unlimited political Power is exercised.

antitrust law is based on the price of

fixed Jeff Bezos games, the cartel sent right to his favor. In accordance with the current practice is the "welfare of the customers" in the foreground, if an anti-competitive behaviour is to be assessed. Specifically, the price is meant to be. As Bezos explained to cheap prices for the customers the highest priority, this makes it more from the point of view of traditional antitrust guard now against monopoly immune to lawsuits.

This view corresponds to the industrial age and not the digital economy of today, says Rohit Chopra, the new democratic Commissioner of the Federal Trading Commission. He took Lina Khan this summer in his services, and convened in the autumn of the first hearings of the Amazon, to be continued in the coming months. He is supported by many newly elected democratic congressmen and Senator Bernie Sanders. Amazon is "too big to fail," say the critics, so seriously a splitting of the group should be considered.

as Long as Amazon was the only dealer, he was able to escape the criticism to a large extent. Although the group, 44 percent of online trading in the USAG, but overall Amazon sales ranks amongst the US-dominated houses only seventh place. "In all of our business areas, we have an incredibly strong competition. Worldwide, only one percent of the retail sales to our account," defended the Amazon. "Our task is and remains to offer customers the best price".

Amazon competes with other vendors with in-house brands

The first big reaching out into new markets, Amazon 2017 deed with the purchase of Whole Foods, the leading provider of organic food. The cartel guards by waving the Takeover, but that's exactly what was Khan of the occasion to examine why the US authorities remained inactive, while the EU-determined Commission. Of concern to the EU competition Commissioner Margrethe Vestager was from the point of view already, then, the immense amount of customer data, as well as the introduction of own-brands, with Amazon external providers to outdo tried.

These concerns have become in the US recently on the topic, and this is mainly because Amazon will now begin to unfold the digital advertising market. Even Google and Facebook claim the lead, but Amazon is already on rank three. Still Amazon attracts only four per cent of the advertising itself, but Bezos has big plans for expansion.

Currently, Amazon provides hundreds of advertising professionals, in comparison to Facebook and Google decisive advantage to exploit. Amazon has up-to-date customer data, which give information about the consumption behavior and, therefore, for the product advertising. This advantage allow Amazon within three years, the advertising business to triple, writes the investment Bank Piper Jaffray. More than that: Already in the year 2021, the online is expected to deliver advertising to a lot of profit such as the services of the Internet Cloud, where Amazon is currently the world's number one.

Each click will cost the competition

Traditional retailers have almost no other choice than to to promote on Amazon, you want to appeal to a ready consumer base. Because the more products Amazon offers, and advertises, the more the external provider back to the rear. "Amazon claimed the best places. This is totally unfair," says Jason Boyce, chief of the interior house Dazadi. Whether he wants to or not, so he needs to buy at Amazon. "The only way I think." Every click on his products cost $ 2 to $ 4; of money, which reduces profits and the coffers of Amazon fills.

A cure for the insatiable Amazon with the old way of Thinking is hardly possible. "Amazon is not the Problem," says Khan, "the application of the law is." Ultimately, Amazon should be regulated as a public utility company, in order to ensure that all providers have fair terms and conditions to the online platform access. (Editorial Tamedia)

Created: 11.12.2018, 16:11 PM

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