Amazon faces potential break-up as FTC finalizes antitrust lawsuit | The FTC is getting ready for the big one::undefined

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[–] 65 points 3 years ago (5 children)

More than half of Amazon's sales come from third-party merchants who this year started paying an average of over 50% commission on every sale, up from 35.2% in 2016, the result of it raising Fulfillment by Amazon fees every year and increasing storage fees.

While paying for Amazon's logistics and advertising services is optional, most merchants consider these, especially advertising, a necessary part of doing business. Moreover, the FTC has reportedly amassed evidence that Amazon disadvantages merchants who don't use the services by giving them lower placements.

Capitalism at its finest... I still remember when Amazon was just a humble online bookstore. How times have changed.

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  • [–] 7 points 3 years ago* (last edited 3 years ago)

    I would be curious if all these influencers pushing FBA (Fulfilled by Amazon) where they got paid for the original thought because there is so much junk flowing into Amazon now especially people trying to use Amazon's logistics.

    I can't imagine there is great margin for a product listed on Amazon if half of every sale is given to Amazon for commission.

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  • [–] 2 points 3 years ago (3 children)

    No doubt this is slimy, but does it make Amazon a monopoly? It seems like a tough case for the FTC to win.

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  • [–] 13 points 3 years ago* (last edited 3 years ago)

    Contrary to popular corporatist disinformation, anti-trust law isn't just for literal control-100.000000%-of-the-market "monopolies." Any company (or colluding group of companies) large enough to unduly influence the market can be subject to it.

    That's why it's called "anti-trust" law, not "anti-monopoly" law.

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