Amazon warns merchants antitrust bill could spell trouble
New rules could clip the wings of e-retailers
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Amazonhas told some merchants that make use of itse-commerce servicesthat antitrust proposals in the US Congress could prove detrimental to their businesses.
Back in June, the US House Committee on the Judiciary signed off on legislation that will allow companies, including Amazon, to make the choice between running aplatformand competing on it.
While the antitrust bills have gained bipartisan support, the fear fore-commerce outletsselling via Amazon’s marketplace is that the move could produce a serious challenge to the power ofinternet retailersand other big online tech firms.
According to media reports, discussions have taken place between Amazon staff and merchants, the details of which have beenposted onlineby e-commerce advice blog EcomCrew. Amazon has confirmed that the post is genuine.
Amazon marketplace
In an email message, one of the Public Policy managers at Amazon noted: “We are concerned that [legislation] could potentially have significant negative effects on small and medium-sized businesses like yours that sell in our store.”
The proposed legislation, called ‘A Stronger Online Economy: Opportunity, Innovation, Choice’, could be used to clip the wings of online tech companies, including Amazon. Crucially, one aspect of the legislation called ‘The Ending Platform Monopolies Act’ could prove problematic for the likes of Amazon andApple.
Both could be affected, as the new rules would clamp down on companies that offer own-brand products. Apple is well-known for its own products on the App Store, while Amazon has a huge range of its own private-label goods on offer, also under its own brand, with an estimated 150,000 products for sale via itse-commerce platform.
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If passed, the legislation could force private-label brands to separate their products from the parent company. Ultimately, the move is seen as being positive for third-party sellers as it would level the playing field and create a more equal arena forselling goods online. However, Amazon is arguing that the proposed legislation could mean third-party sellers won’t be able to sell through the platform.
In a statement, the online retailer said: “More than a half million American small- and medium-sized businesses make a living via Amazon’s marketplace, and without access to Amazon’s customers, it will be much harder for these third-party sellers to create awareness for their business and earn a comparable income. Removing the selection of these sellers from Amazon’s store would also create less price competition for products, and likely end up increasing prices for consumers.”
ViaReuters
Rob Clymo has been a tech journalist for more years than he can actually remember, having started out in the wacky world of print magazines before discovering the power of the internet. Since he’s been all-digital he has run the Innovation channel during a few years at Microsoft as well as turning out regular news, reviews, features and other content for the likes of TechRadar, TechRadar Pro, Tom’s Guide, Fit&Well, Gizmodo, Shortlist, Automotive Interiors World, Automotive Testing Technology International, Future of Transportation and Electric & Hybrid Vehicle Technology International. In the rare moments he’s not working he’s usually out and about on one of numerous e-bikes in his collection.
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