Amazon is using it's profits from AWS to 'dump' on other, low margin businesses. The most recent FT Alphachat podcast with an official from the Fed talks about

Amazon is using it's profits from AWS to 'dump' on other, low margin businesses. The most recent FT Alphachat podcast with an official from the Fed talks about Uber this way: Uber (and Lyft) are taking money from somewhere and undercutting the classical taxi business. This is a problem for competition. They could feasibly try to run losses until 'regular cabs are pushed out' (or largely) and then lock up the business. Amazon can do this with any number of products, they can do it to shipping companies, to grocers. More abstractly, Google does it with mobile OS, possibly browsers etc.. In our new world of globalization, it's a serious problem. All this money from Saudi Arabia, under the control of Softbank is coming back and just throwing markets upside down in what is arguably tantamount to 'dumping' which is a bad business practice generally. Even we work is like this - it's losing tons of money, ultimately selling stuff below market value. In some cases it's much more clear than others, but it's going to pose a problem. This issue very well highlights the problematic idea that business is about 'better products and service' or even 'free markets' due to the fact that so much cash provides leverage that distorts markets quite heavily. Alphachat with Robert Kapla @ FT: https://ftalphaville.ft.com/series/Alphachat https://ftalphaville.ft.com/series/Alphachat