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This isn't an investigation into whether these companies are monopolies. This is an antitrust investigation. Are these companies being anti-competitive? So tak
by cheschire 7y ago
This isn't an investigation into whether these companies are monopolies. This is an antitrust investigation. Are these companies being anti-competitive?
So take the e-reader market. Amazon was able to undercut everyone else on price by a wide margin. A question could be asked whether their breadth of business allowed them to sell at a loss for long enough to kill off competition. Maybe, or maybe not, but was that their intent? I'm not sure how much intent matters in these types of cases.
And I'm sure there's more here that could be perceived as anticompetitive. I'm just picking some obvious example of where an investigation might be useful.
- rvn1045 7y agoLowering the price is good for consumers.
- pjc50 7y ago.. but only in the short term. The whole point of a loss leader is to be able to jack the price up later.
- mlthoughts2018 7y agoThen competitors re-enter the market and drive the jacked up price back down. This phenomenon on its own is not anticompetitive at all. You’d need evidence of something entirely different like regulatory capture to prevent competitors from market re-entry or lobbying for laws that favor existing market leaders.