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by olliebrkr 588 days ago
It's 100% predatory. I hope we will see similar cases brought against Amazon soon (if they haven't been already).

The fact that so many companies are dependent on selling on Amazon, yet Amazon also sells their own products, is ludicrous.

- AcmeShop sells 3d printers and sell on Amazon

- Amazon sees these printers are selling well

- Amazon buys/creates their own 3d printer brand

- Amazon gives their own products preferencial treatment and uses all it's data for how AcmeShop's printers are selling to undercut them in all markets

- AcmeShop goes out of business because unaware consumers buy what, on the surface, is a better deal

- With no competition Amazon increases it's prices to whatever it likes

2 comments

Is Amazon able to make a better value 3d printer?

If yes, seems like consumers win?

If no, then people will lose trust on Amazon over time and will use other shopping platforms. So Amazon is basically trading short-term profit for long-term profit.

Consumers win when there is continued competition. Short term, sure, consumers get a better printer, but once Amazon has taken over the market where is the drive to make anything better or cheaper? It's competition 101..

I think a lot of American's have lost trust in AT&T, Time Warner Cable, but it doesn't meant they're not forced to use them.

If you control the pipes you should not be allowed to also sell the water in those pipes. You will always be in a far greater position to take advantage and become a monopoly, which, is well documented, hurts consumers.

Aww... have you ever heard about price dumping to kill the competition? Kindle would be a good example here :D
Every big retailer has its own house brand. There is nothing special about a big retailer using their sales data to make decisions on house branding.

No they cannot adjust their pricing to whatever they like because Amazon is not a monopoly. People can buy stuff elsewhere. If Amazon pricing is bad, people will leave and it will kill Amazon.