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Why a Trump-led antitrust case against Amazon is a long shot



President Donald Trump's tweets against

Amazon.de
Inc.


AMZN 1.11%

has rekindled investor concerns about the possibility of a competition lawsuit against the online retail giant.

But combating Amazon for anticompetitive reasons would be difficult to revolutionize the principles that have been ruling the US antitrust authorities for decades, say policy experts.

On Thursday, Mr. Trump again berated Amazon for his business practices and economic repercussions, saying the company should pay more taxes and be "" This tweet followed a report from Wednesday's online news site Axios, in which he said that Trump wanted to regulate stricter regulations on Amazon by the antitrust law and would lower the company's stock by more than 4%.

Amazon's rapid growth in more than two decades from an online bookseller to a $ 1

78 billion retailer who also has a cloud computing business, a Hollywood studio, a device store, and a grocer. The retail chain has Mr. Trump and caused some policy experts to ask how big is too big.

Current regulations typically only come into effect when a company is dominant in a market or harms consumers to Amazon. While Amazon accounts for approximately 43% of the US ecommerce market, eMarketer still accounts for less than 4% of total US retail sales.

Some people in the business world, including those who know Mr. Trump well, have said that antitrust law has missed its historic purpose on Amazon, focusing too much on pricing, and not enough on the fear that integrated businesses could be anti-competitive, people who are familiar with that said.

In particular, some of those worried about Amazon's reach have an article in January 2017 in the Yale Law Journal, "Amazon's Antitrust Paradox," by Lina M. Khan, which restructures maps, such as antitrust enforcement.

Their basic argument is that antitrust framework has shifted from considering market structure to the well-being of consumers, something that has led Amazon to evade control. She argues that if Amazon practices repressive prices in different markets, it can force competition, even if it's good for consumers. She argues that rebuilding an approach that examines Amazon's power over the markets rather than its impact on consumers would better address the power of the tech giants

. German: emagazine.credit-suisse.com/app/art … = 157 & lang = DE Khan and other researchers have recently launched a debate on antitrust regulation in politics and in the academic community, says. English: emagazine.credit-suisse.com/app/art … = 120 & lang = en

A. Douglas Melamed,

Professor of Law at Stanford University and Former Deputy Prosecutor General who was in charge of the US Department of Justice's cartel department during the Clinton administration. But many of the theories are too general and operate on potentially problematic and unproven premises.

If Mr. Trump decided to pursue any new regulations, he would either have to push a law through a Republican Congress, which is unlikely to be receptive to more regulation or involvement of the Justice Department and other authorities to bring a case to court. said Melamed

"It's a huge amount of work, with a very dubious reward," he adds.

A The White House spokeswoman said Thursday, "The president has expressed his concerns with Amazon have no action at this time. "

The Department of Justice has no active antitrust investigations against Amazon, as people know who are familiar with the matter.

Amazon declined to comment. The company has said that in all 45 states that have such a tax, it levies sales taxes on its own inventory and voluntarily levies taxes in some communities.

In an interview last year, retail boss Jeff Wilke pointed to the "multi-faceted" enterprise and horizontally large amount of business "and the incredible competition it faces in every industry.

Many experts think that it unlikely Amazon will face more regulation for exactly these reasons, and not all investors worry.

"I just think we have a president who does not like Jeff [Bezos] very much, and I think that a bit plays a big role, "said Trip Miller, founder and managing partner of Gullane Capital LLC, which owns shares in Amazon." That does not look like it

AT & T

1984, where they owned a single industry.


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