Amazon monopoly

by Sem Schukking

Posted on 17 augustus, 2020

Amazon came under scrutiny on July 29, 2020, by "The House of Representatives" for suspected monopolistic activities. The sales data that the world's largest marketplace collects from third-party sellers is suspected to be abused by Amazon. Amazon is using the sales data from the third-party sellers to release competing products, thereby disadvantaging the sellers, according to the rumors.

The data being collected

The House of Representatives was primarily interested in the extent to which Amazon used the sales data of third-party sellers to gain a competitive advantage over its "partners.

Amazon admitted that it collects and stores sales data from every product on its platform. They use this data for business strategies, website optimization, customer experiences and more.

Like any other company, Amazon spots market trends and can capitalize on them, which is why they collect all this information, according to them.

Is Amazon abusing their data?

Whether or not Amazon misuses data from third-party vendors has become clear. In opening remarks by Jeff Bezos (CEO Amazon), he indicated that Amazon has in its policy that employees are not allowed to use sales data from third-party vendors for its own private-label products. He could not guarantee that employees obey this policy.

Is it unfair of Amazon to use this information?

Whatever the U.S. government will do, it will never be a perfect solution. A level playing field between third-party sellers and Amazon with its private label products would be a step in the right direction, but how this process will play out.... Only time can tell.

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