Re:FTC Sues Amazon for Illegally Maintaining Monopoly Power
by stale2002 on Tuesday September 26, 2023 @03:26PM
(#37664606)
> Using pricing as a weapon, for example selling a product lower than cost in order to monopolize a market is not.
If the price stays low and never goes to high monopoly prices then it is a good thing.
If a company becomes a "monopoly" by being cheap, and staying cheap, thats just competition by definition.
Which is the situation we are seeing with amazon.
Re:FTC Sues Amazon for Illegally Maintaining Monopoly Power
by lp0_on_fire on Tuesday September 26, 2023 @06:39PM
(#37666776)
Selling things at a loss doesn’t mean things are cheap it just means the real costs are being subsidized elsewhere.
Re:FTC Sues Amazon for Illegally Maintaining Monopoly Power
by ameister14 on Tuesday September 26, 2023 @09:43PM
(#37668704)
>If the price stays low and never goes to high monopoly prices then it is a good thing.
Not necessarily, but it goes a long way to balancing out the negative consequences. The problem, though, is they've never had prices stay low. Eventually, prices go up. So far, Amazon does this through loss-leaders; products that have low prices allowing them to capture a market and charge high prices for other products as a monopoly.
>If a company becomes a "monopoly" by being cheap, and staying cheap, thats just competition by definition.
If that was all they were doing it would be legal.
>by offer better quality stuff,
Amazon, for example, offering counterfeits of your product as your product is not under the definition of "better quality stuff"
>for a lower price
Again, offering a lower price consistently is one thing. Using pricing as a weapon, for example selling a product lower than cost in order to monopolize a market is not.