They were broken up by an act of Congress. All three companies have done just fine. And there's lots of competition in all three industries.
And as a guy working for Amazon, I thing if Amazon got split up, all the child companies would do just fine. The secret to success is the culture. I doubt it will ever happen though.
The current framework in antitrust, the consumer welfare framework, really fails to capture forms of market power and forms of dominance that should be relevant to antitrust and do raise competition concerns. We should really question the existing anti trust laws and whether they are suitable for the 21st century.
Companies, without monopolies, are starting to exert serious soft power, often bending governments, crushing competition and engaging in anti-competitive behavior without a pure monopoly.
Try telling that to diapers.com
> Simply being better at something than your competition isn't anti-competitive.
Couldn't agree more on this part.
https://www.theverge.com/2018/4/16/17243026/amazon-warehouse...
For example, consider single mothers working two jobs, ordering from Amazon.com to save time & money. And depending on where they live, they might even get the order within a couple hours. That's a new kind of efficiency that many benefit from.
Low prices aren't free. Some of it came from efficiency, the rest comes from simply paying labor less.
https://www.bls.gov/opub/ted/2018/4-point-9-percent-of-worke...
That's not to say it's casual. Maybe it would've decreased more sans Amazon. Who knows.
Anyway, the point was simply that it's not only/mostly engineers who derive value from their existence. It includes every Amazon customer who saves time & money - especially those who have too little of both.
For tens of millions of working poor who live in apartment complexes, Amazon provides absolutely zero benefit since they cannot order anything bigger than a kumquat without risk of it being stolen off of their porch. The office? The office doesnt exist or is closed during the hours they are working - and UPS wont deliver there anyways a lot of the time.
They'd have to violate the law. As it stands, they're not engaging in anti-competitive activity. Simply being better at something than your competition isn't anti-competitive.
> Seems like we're heading to a dystopian future where megacorps own you in every sense.
Literally every business that Amazon has entered has improved my life. Books are cheaper with an enormously larger selection available. Prime Video offers alternative to Netflix. AWS has revolutionized the software industry.
Don't get me wrong -- Amazon is in it for Amazon, and I think Jeff Bezo's can be an asshole. But the reason they get my money year after year is that they do such a great job.