When Amazon.com Inc. agreed to buy the Metro-Goldwyn-Mayer movie company for $8.45 billion, it didn’t take long for politicians from both parties to raise antitrust concerns about the deal.
Leading 100 global online marketplaces. Access up to 5 years of third-party (3P) and total GMV, company information, AOVs, conversion rates, # of sellers, and SKUs. Web sales range from $19.8 million to over $ 723.8 billion annually.
On May 26, the same day Amazon announced the planned acquisition, Sen. Josh Hawley, R-Mo., tweeted: “This sale should not go through. @amazon is already a monopoly platform that owns e-commerce, shipping, groceries & the cloud. They shouldn’t be permitted to buy anything else. Period.” In a statement, Sen. Amy Klobuchar, D-Minn. called for a federal investigation of the Amazon/MGM deal, which still needs federal approval.
Experts say the antitrust bluster from Washington—including an antitrust lawsuit filed for other reasons by District of Columbia Attorney General Karl A. Racine—is unlikely to result in dramatic action under current antitrust laws. But a set of bills introduced in Congress last week could change the playing field, potentially making Amazon and other tech giants more vulnerable to antitrust action.
Amazon sellers penalized for setting lower prices elsewhere
Amazon uses its market dominance to control prices in ways that aren’t good for marketplace sellers or consumers, says Justin Boyce, CEO of marketing agency Avenue7Media LLC. But because of Amazon’s dominance of ecommerce, third-party sellers feel they have no choice but to play along.
To get immediate access to the rest of this article, sign up for a free Strategy Membership using the Join for Free button below. If you’re already a member, please sign in.
Want to read more? Unlock Free Strategy Membership
