3 ms·
So first of all, it doesn't say they're selling it below cost, and they are engaged in an overall razor-and-blade strategy that is profitable without the need t
by JackC 14y ago
So first of all, it doesn't say they're selling it below cost, and they are engaged in an overall razor-and-blade strategy that is profitable without the need to drive competitors out of the market. So factually, maybe not predatory.
In general, you would have to prove that Amazon has so much power in the market, and the market is so hard to enter, that they are likely to recover their losses from low prices now by charging higher-than-competitive prices later, without competitors coming in and undercutting them when they change strategies. Otherwise low prices are good for consumers and antitrust has nothing to say about it.
That said, Amazon already has a ton of power over book publishers, and they are trying hard to extend that power. If I were an antitrust regulator, I'd be trying like hell to make a case against them. But it would be tricky.