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That's fair, but Amazon has only a small % of total retail sales (4% in 2017, according to a quick search). I'm not sure at what point it's commonly assumed tha
by TulliusCicero 8y ago
That's fair, but Amazon has only a small % of total retail sales (4% in 2017, according to a quick search). I'm not sure at what point it's commonly assumed that a company has monopoly or market power, but I'm pretty confident it's not 4% or even close to that.
edit: another quick googling says that US courts apparently almost never conclude a company has market power if they have less than 50% market share: https://www.repository.law.indiana.edu/cgi/viewcontent.cgi?referer=https://en.wikipedia.org/&httpsredir=1&article=1388&context=fclj https://www.repository.law.indiana.edu/cgi/viewcontent.cgi?r...
Amazon is still growing at a good clip but I'd be really surprised if they were able to pass even 20%, let alone 50%.
- emodendroket 8y agoOr forty-four percent of online sales. https://www.cnbc.com/2018/01/03/amazon-grabbed-4-percent-of-all-us-retail-sales-in-2017-new-study.html https://www.cnbc.com/2018/01/03/amazon-grabbed-4-percent-of-...
- TulliusCicero 8y agoI'm not sure that's a super meaningful distinction for market power. It's a different method of selling, but ultimately you're selling largely the same things. You probably wouldn't separate out "Ford has this much market share in dealerships vs online sales" most of the time, for example.
- emodendroket 8y agoWell, I suppose that's the key question. But I think that yuo might argue it is, because there's a huge "long tail" of goods that you can only really hope to sell online.
- user3359 8y agoIt is. Monopolies only exist within context. Zero to one has a good section on this.