“Amazon is the only winner here,” Stacy Mitchell Institute for Local Self-Reliance co-director and author of the report, told Recode “It’s exploiting its monopoly power over these small businesses to pocket a huge and growing cut of their revenue.”
Amazon Marketplace not only engages in #consumerallocation and #pricefixing, firmly outlawed under the #ShermanAct, with third-party sellers, it further engages in the largest #wirefraud scheme in history.
Wire fraud is any federal crime that involves a deliberate action to defraud by means of electronic communication. In this case, Amazon utilizes the Internet to scale and promote millions of agreements with third-party sellers that restrain free trade.
Amazon is not the only winner here. Third-party sellers are direct beneficiaries of this fraud, they are not victims. Consumers and legitimate small businesses that build products in competition, rather than collusion, with Amazon — these are the victims of fraud.
Stacy Mitchell, yet another #hipster #antitrust advocate, remains firmly ignorant to propose for the US Congress to regulate Amazon as a utility, capping its fees. Amazon is not a utility, its an illicit monopoly.
There is only one solution here — to enforce the Sherman Antitrust Act and to ban Amazon from collusion with millions of competitors. Anything less is equivalent to enablement in combination with pure ignorance of the purpose of antitrust law and e-commerce.
Over 60% of all sales on Amazon are a product of wire fraud, as a matter of fact. Capped fees can not fix that, nor will they restore the lack of competition with Amazon. Why compete with Amazon if one can simply sell on it?
Sara Morrison #hipster #antitrust vs #bigtech