Re:FTC Sues Amazon for Illegally Maintaining Monopoly Power
by intended on Wednesday September 27, 2023 @09:34AM
(#37674445)
Nice! I remember her argument regarding Amazon.
From what I recall, the reason why her argument was recognized is because it solved a thorny problem of US anti trust law, proving harm.
Currently, in the US what matters is showing that consumer welfare was harmed. AINAL but proving harm is not easy - Amazon in particular reduces prices to the end customer, increases choices and makes sales easier.
This is where most arguments died, however her approach had enough merit to pursue.
However, it seems her approach and argument has changed, and is more couched in terms of current legalese - more focused on showing consumer harm than applying a new legal approach.
Re:FTC Sues Amazon for Illegally Maintaining Monopoly Power
by hellojesus on Wednesday September 27, 2023 @04:36PM
(#37680933)
> Since everything is automated, prices can change in a matter of seconds, so once competitors are destroyed, prices go back up automatically.
How is this different than a grim reaper strategy taught in econ 101?
She has literally been building this case against Amazon since she was a student. It’s not just about dropshippers. It’s also about how Amazon uses automated price controls, guided by scraping of competitors, to engage in dumping [2] and predatory pricing [3] to wipe out competing e-commerce sites. Since everything is automated, prices can change in a matter of seconds, so once competitors are destroyed, prices go back up automatically.
[1] https://www.yalelawjournal.org/pdf/e.710.Khan.805_zuvfyyeh.p...
[2] https://en.wikipedia.org/wiki/Dumping_(pricing_policy)?wprov...
[3] https://en.wikipedia.org/wiki/Predatory_pricing?wprov=sfti1