#Amazon#FTC#Antitrust#BigTech#Monopolies: "[I]n amazon’s case, the FTC lawsuit suggests that the company’s financial disclosures effectively conceal a major source of profits: its third-party marketplace, which connects buyers with outside sellers. Third-party transactions represent about 60 percent of Amazon’s sales volume. The company acts as a middleman, matching vendors with shoppers and providing logistics to get the product from one to the other. The FTC alleges that, within this third-party market, Amazon imposes exorbitant fees on the sellers who rely on its site to reach customers, fees well in excess of what it costs Amazon to provide those services, leading to big profits. How big? That’s redacted.
The amount of profit that Amazon makes from third-party sellers, as opposed to AWS or some other division, might sound like a technical distinction, but it’s essential to the case against the company. The FTC alleges that Amazon’s low-price image is a mirage: According to the FTC, the company actually keeps prices higher than they would be in a competitive market—not just on Amazon but across the internet—squeezing consumers and small businesses in the process. Amazon famously lost billions of dollars in its early years and was barely in the black for many years after that."
