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Home / Business / Amazon's antitrust review puts the EU in a league with Trump and Warren

Amazon's antitrust review puts the EU in a league with Trump and Warren

Alone through the usual business activity Amazon has achieved a political rarity: The interests of President Trump were combined with those of two frequent slides, the Democratic challenger Elizabeth Warren and the European Union.

Since winning the White House in 2016, Trump accused the Seattle-based ecommerce giant of paying inadequate taxes and taking advantage of the US Postal Service while promising that its government would investigate antitrust issues.

Warren, a Massachusetts senator and frequent target of Trump's tweets, said she would dissolve Amazon, also because it competes with its own customers.

Now, the European Commission, the administrative arm of the regional trading bloc, is launching an investigation in which Amazon is investigating whether some of the same goods are being sold as the retailers who use its e-commerce platform.

The dual role of the marketplace and the retailer gives Amazon the opportunity to attract its own business customers ata against them, the regulators said. By agreeing to the Private Company, Amazon will be able to analyze and use the data obtained by monitoring platform activity. The Commission's preliminary finding shows that the company uses competitive knowledge.

"European consumers are increasingly buying online," said Commissioner Margrethe Vestager, the leading European cartel authority. "E-commerce has boosted competition in the retail sector and led to more choice and better pricing, and we need to ensure that large online platforms do not nullify these benefits through anticompetitive behavior."

The investigation conducted by Bank of America analyst Justin Post This can take up to two years and comes at a crucial time for the company. The growing scrutiny of US regulators was reinforced by the 2020 presidential campaign, which saw a broad array of Democratic candidates for liberal goals, from raising the minimum wage to extending consumer protection.

"My government will make major structural changes to the technology sector to promote more competition ̵

1; including the separation of Amazon, Facebook and Google," Warren said during the retailer's Prime Day sales event this week.

Earlier this year, the Department of Justice and the Federal Trade Commission agreed to divide supervision over Amazon, Google, Apple, and Facebook. Compared with Facebook over $ 5 billion for privacy complaints.

In 2018, the European Commission imposed a fine of $ 5.1 billion on Google for anti-competitive practices, an amount previously thought to be high compared to $ 103 billion in available funds from California's Mountain View was the time. The company was also instructed to prevent problematic behaviors. This included phone manufacturers using the company's open source Android operating system to install Google Search and Google Chrome apps on devices to connect to the Google Play app store.

The company was founded by billionaire Jezz Bezos, who owns the Washington Post. According to Fitch Ratings, a company that analyzes corporate debt, Europe could take steps from fine-tuning to enforcing changes in its business.

Trump himself told CNBC in an interview a few weeks earlier that "something is underway in terms of monopoly," citing the number of European regulatory actions against major US technology companies, including Amazon and Apple. "We should do what they do," the president said.

As far as Amazon is concerned, the e-commerce company has rejected allegations of exploiting customers or unfair competition. An Amazon executive underscored that position early this week as he teamed with representatives of the technology-savvy companies Facebook, Apple, and Google to clarify questions from the House antitrust committee on compliance with US competition laws.

Amazon faces a tough rivalry in the retail industry "as old as human experience," said Nate Sutton, the company's associate general counsel for competition. The success depends on third-party vendors whose sales are growing faster than Amazon's.

"Amazon supports these sellers because we have a strong incentive," he said. "The broad selection and price competition that these sellers bring to our stores are attractive to our customers and our distributors offer the vast majority of new products in our stores."

But that's not the whole story, said Stacy Mitchell, co-director of the Institute for Local Independence, a 45-year research group of public interest. Many small businesses with their own ecommerce businesses had to sell products through Amazon, as this is the point of call for online shoppers: the company consumed more than half of the $ 510 billion in online retail spend last year, compared to just a third-year of 2014.

That was the experience of Gazelle Sports, a Michigan apparel business that turned to Amazon after a steady stream of online shoppers generated positive Google and Yelp reviews was, began to dwindle.

"Virtually every manufacturer and retailer of consumer goods in America faces the same situation," Mitchell told the House panel. "To reach more than half of the online market, they need to sell through a platform operated by one of their most aggressive and impressive competitors, which is a bitter pill, meaning they are handing over their customer relationships and product expertise to Amazon . "

Democrats claiming that Amazon and others have benefited from careless regulation designed to fuel the growth of the Internet and related businesses in the mid-1990s were also skeptical.

"There is growth among venture capitalists and start-ups The consensus that there is a kill zone around Google, Amazon, Facebook and Apple that prevents new start-ups from entering the market, "said Rhode Island Democrat Subcommittee chairperson David Cicilline," The combination High network cost, high switching costs, and the self-reinforcing advantage of data can make the market shielding the dominant companies the winner. "

Although Amazon has a market value of US $ 974 billion It is not a bad guy because of its size, said Rep. Jim Sensenbrenner, the supreme Republican in the cartel committee. He called on legislators to adopt a "fair and balanced" approach, as advocated by his colleagues at GOP during a House Financial Services Committee hearing on Facebook's crypto-currency project fiat based on misconceptions that it is necessary to be bad or that anything a big company does should be considered anticompetitive, "Sensenbrenner said," Companies would often grow big, "he said," simply by offering a better service or a better product than the other companies in the market. "[19659025]! Function (f, b, e, v, n, t, s) .fbq) return; n = f.fbq = function () {n.callMethod?
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