Question

Do you think that Amazon is monopoly? Provide evidences to support your choice.  

Answer 1

As a global retailer, cloud services provider, and media production house, Amazon is the largest internet company in the world and the second-biggest employer in the United States.monopoly is “complete control of the entire supply of goods or of a service in a certain area or market.The implication is that monopolistic companies are able to destroy competitors and dictate prices.

Amazon has monopoly power over most of its third-party sellers and many of its suppliers, the majority staff alleges.

Amazon's market share of U.S. online retail sales is "likely understated" at 40%, according to the report, which says "more credible" estimates place it around 50% or more.Amazon has engaged in extensive anticompetitive conduct in its treatment of third-party sellers," the report's authors write. "Publicly, Amazon describes third-party sellers as 'partners.' But internal documents show that, behind closed doors, the company refers to them as 'internal competitors.US antitrust law generally focuses on whether a company harms customers. The core principle is to ensure competition and protect consumers against predatory practices – thus preventing monopolies and strengthening the open-market economy.

Amazon, based in Seattle in Washington state, is a tremendously large conglomerate, with a valuation that hovers around $1 trillion. The firm’s dominance can and does prevent other companies from competing in certain industries.Monopsony” refers to the reverse of a monopoly – a situation where there is only one buyer that controls the market because it is the main purchaser of goods and services from sellers. For Amazon, this could apply to its leverage over prices charged by shipping firms such as FedEx and UPS. It could also include regions where Amazon is the main employer and manages to push down employee wages. The standard in predatory pricing cases remains high, because a company must be proven to have wronged plaintiffs. And Amazon has contributed mostly to deflationary forces. The law would need to be changed for antitrust rules to apply when consumers have not been explicitly gouged.