3 ms·

Wasn't the FTC just accusing Amazon of artificially forcing down seller prices to starve competition?

by ch4s3 3y ago

cratermoon 3y ago
And then raising them again when the competition was gone.
- ch4s3 3y ago
  Did they actually demonstrate that Amazon was raising prices above MSRP or above prices at say Walmart or Target for similar SKUs?
  - cratermoon 3y ago
    > above prices at say Walmart or Target for similar SKUs? "The consumers' lawsuit filed in July 2022 challenged Amazon's "minimum margin agreements" with its merchandise suppliers. The plaintiffs alleged those deals have prohibited non-Amazon retailers from selling the same product elsewhere for a lower price." <https://www.reuters.com/legal/litigation/amazon-loses-bid-dismiss-consumers-price-fixing-lawsuit-us-court-2023-09-07/ https://www.reuters.com/legal/litigation/amazon-loses-bid-di...> In short, the prices were the same at other retailers because Amazon was price-fixing. Algorithmic Pricing: <https://www.cmu.edu/news/stories/archives/2023/october/algorithmic-pricing-understanding-the-ftcs-case-against-amazon https://www.cmu.edu/news/stories/archives/2023/october/algor...>
    - ch4s3 3y ago
      That’s not quite how Amazon pricing works. It doesn’t allow sellers to discriminate their discounts by channel. But if say Walmart runs a sale on product X, Amazon will follow that price. I’ve read the whole complaint and I’m familiar with how Amazon pricing works. You’re mistaken on the definition of price fixing.
      - cratermoon 3y ago
        Hey, I'm not going to argue it. I'll let the DOJ explain it: https://www.justice.gov/opa/pr/five-amazon-marketplace-sellers-and-four-amazon-marketplace-companies-sentenced-price-fixing https://www.justice.gov/opa/pr/five-amazon-marketplace-selle...
        ch4s3 3y ago
        This press release isn't even about Amazon itself. That price fixing case only incidentally involves Amazon because the products were sold on the market place, Amazon was not a party to the price fixing. Did you read it?

Wasn't the FTC just accusing Amazon of artificially forcing down seller prices to starve competition?

by ch4s3 3y ago

Wasn't the FTC just accusing Amazon of artificially forcing down seller prices to starve competition?

cratermoon 3y ago

And then raising them again when the competition was gone.

ch4s3 3y ago
Did they actually demonstrate that Amazon was raising prices above MSRP or above prices at say Walmart or Target for similar SKUs?
- cratermoon 3y ago
  > above prices at say Walmart or Target for similar SKUs? "The consumers' lawsuit filed in July 2022 challenged Amazon's "minimum margin agreements" with its merchandise suppliers. The plaintiffs alleged those deals have prohibited non-Amazon retailers from selling the same product elsewhere for a lower price." <https://www.reuters.com/legal/litigation/amazon-loses-bid-dismiss-consumers-price-fixing-lawsuit-us-court-2023-09-07/ https://www.reuters.com/legal/litigation/amazon-loses-bid-di...> In short, the prices were the same at other retailers because Amazon was price-fixing. Algorithmic Pricing: <https://www.cmu.edu/news/stories/archives/2023/october/algorithmic-pricing-understanding-the-ftcs-case-against-amazon https://www.cmu.edu/news/stories/archives/2023/october/algor...>
  - ch4s3 3y ago
    That’s not quite how Amazon pricing works. It doesn’t allow sellers to discriminate their discounts by channel. But if say Walmart runs a sale on product X, Amazon will follow that price. I’ve read the whole complaint and I’m familiar with how Amazon pricing works. You’re mistaken on the definition of price fixing.
    - cratermoon 3y ago
      Hey, I'm not going to argue it. I'll let the DOJ explain it: https://www.justice.gov/opa/pr/five-amazon-marketplace-sellers-and-four-amazon-marketplace-companies-sentenced-price-fixing https://www.justice.gov/opa/pr/five-amazon-marketplace-selle...
      - ch4s3 3y ago
        This press release isn't even about Amazon itself. That price fixing case only incidentally involves Amazon because the products were sold on the market place, Amazon was not a party to the price fixing. Did you read it?