this post was submitted on 27 Jul 2023
785 points (99.1% liked)

Technology

59657 readers
3043 users here now

This is a most excellent place for technology news and articles.

Our Rules

  1. Follow the lemmy.world rules.
  2. Only tech related content.
  3. Be excellent to each another!
  4. Mod approved content bots can post up to 10 articles per day.
  5. Threads asking for personal tech support may be deleted.
  6. Politics threads may be removed.
  7. No memes allowed as posts, OK to post as comments.
  8. Only approved bots from the list below, to ask if your bot can be added please contact us.
  9. Check for duplicates before posting, duplicates may be removed

Approved Bots

founded 1 year ago
MODERATORS
L3s
[email protected]
[email protected]
L4s
enu
785
Amazon faces potential break-up as FTC finalizes antitrust lawsuit | The FTC is getting ready for the big one (www.techspot.com)
submitted 1 year ago by L4s to c/technology
104 comments fedilink hide all child comments
 

Amazon faces potential break-up as FTC finalizes antitrust lawsuit | The FTC is getting ready for the big one::undefined

you are viewing a single comment's thread
view the rest of the comments
[–] [email protected] 65 points 1 year ago (2 children)

More than half of Amazon's sales come from third-party merchants who this year started paying an average of over 50% commission on every sale, up from 35.2% in 2016, the result of it raising Fulfillment by Amazon fees every year and increasing storage fees.

While paying for Amazon's logistics and advertising services is optional, most merchants consider these, especially advertising, a necessary part of doing business. Moreover, the FTC has reportedly amassed evidence that Amazon disadvantages merchants who don't use the services by giving them lower placements.

Capitalism at its finest... I still remember when Amazon was just a humble online bookstore. How times have changed.

[–] joekar1990 7 points 1 year ago* (last edited 1 year ago)

I would be curious if all these influencers pushing FBA (Fulfilled by Amazon) where they got paid for the original thought because there is so much junk flowing into Amazon now especially people trying to use Amazon's logistics.

I can't imagine there is great margin for a product listed on Amazon if half of every sale is given to Amazon for commission.

[–] reversebananimals 2 points 1 year ago (3 children)

No doubt this is slimy, but does it make Amazon a monopoly? It seems like a tough case for the FTC to win.

[–] grue 13 points 1 year ago* (last edited 1 year ago)

Contrary to popular corporatist disinformation, anti-trust law isn't just for literal control-100.000000%-of-the-market "monopolies." Any company (or colluding group of companies) large enough to unduly influence the market can be subject to it.

That's why it's called "anti-trust" law, not "anti-monopoly" law.

[–] InfiniteVariables 9 points 1 year ago

Not sure but giving your own products preferential placement on what you present to the public as an open marketplace is an anti-competitive behavior that they have been caught doing.

[–] [email protected] 3 points 1 year ago* (last edited 1 year ago)

Took them ten years to split up AT&T and that was a literal monopoly. Near 100% market share.