Protecting Small Businesses From Amazon’s Monopoly Power

I am responsible for managing a small enterprise. As we expanded into ecommerce some months ago, I looked into the advantages offered by Amazon’s fulfillment services. But the disadvantages, which I have been reading about and posting about here for some years outweighed the advantages.

Andy Jassy. David Paul Morris/Bloomberg

Having just read this op-ed on the same topic, I am more convinced than ever of the dangers Amazon poses to companies like ours. Maureen Tkacik, a senior fellow at the American Economic Liberties Project, does an an additional service by highlighting the efforts of Congresswoman Lucy McBath (who Amie had the good fortune to be able to campaign for and who our family voted for when we resided in her district during her first campaign) to hold the company accountable:

What Jeff Bezos Hath Wrought

The Amazon founder prepares to step back just as Washington turns up the heat on the mega-retailer and cloud company.

If I had to guess who inspired Amazon’s founder, Jeff Bezos, to kick himself upstairs and appoint Andy Jassy, a deputy, as his successor as chief executive, I might wager that at least part of the blame can be laid on Lucy McBath, the freshman Georgia congresswoman, and her understated grilling of one of the world’s richest men at a July hearing held by the House antitrust subcommittee.

At the hearing, widely regarded as a watershed moment for America’s tech giants, most of the subcommittee members — and all the Democrats — had coalesced around a consensus: The business models of the four biggest tech companies depend on cementing and exploiting their statuses as gatekeepers to the internet, and scheming to bring down anyone who threatens their power to exact ever higher tolls on every minute we spend on the internet.

Only Mr. Bezos, however, had explicitly set out to become a ubiquitous “middleman” of all internet commerce. So most of the lawmakers pushed him to admit that he had systematically bought rivals and lost money selling goods and services below cost solely to destroy the competition, in violation of numerous federal laws that had long gone unenforced — or, as the antitrust scholar Lina Khan has put it, “charted the company’s growth by first drawing a map of antitrust laws, and then devising routes to smoothly bypass them.”

Before the hearing, Ms. McBath had shown little interest in waging class war on billionaire elites. A flight attendant who entered politics after the murder of her teenage son in a crime enabled by Florida’s infamous Stand Your Ground law, she had endorsed Mike Bloomberg in the Democratic presidential primary race. But interviews she and her staff had conducted with small business owners who sold their goods on Amazon’s platform had clearly left her in no mood to suffer fools…

Read the whole op-ed here.

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