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The European Commission has accused Amazon of abuse of dominance for using marketplace data to target products.
Like the House Judiciary Committee report it seems to want Amazon to be a neutral pipe for others to use. Here's me on why that's misguided. https://thehill.com/blogs/congress-blog/technology/521495-digital-platforms-arent-utilities-treating-them-like-they-are
Like the House Judiciary Committee report it seems to want Amazon to be a neutral pipe for others to use. Here's me on why that's misguided. https://thehill.com/blogs/congress-blog/technology/521495-digital-platforms-arent-utilities-treating-them-like-they-are
If you ever wonder why Europe doesn't have its own Amazons, here is one reason why: the EU believes that once a private company has built a successful platform, that platform should start to act like a public utility.
The complaint is here. https://ec.europa.eu/commission/presscorner/detail/en/ip_20_2077
The complaint is here. https://ec.europa.eu/commission/presscorner/detail/en/ip_20_2077
The EC does *not* allege that Amazon is harming consumers. It alleges that what Amazon does harms merchants - ie, its competitors.
But competition, whether it's cutting your prices or making a better product, is inherently bad for competitors *because* it's good for consumers!
But competition, whether it's cutting your prices or making a better product, is inherently bad for competitors *because* it's good for consumers!
The worst thing about monopolization and weak competition is giving businesses a quiet life, so they don't have to bother innovating or working to help consumers.
But the exact thing the EC complaint wants to give merchants is a quieter life – with less competition from Amazon!
But the exact thing the EC complaint wants to give merchants is a quieter life – with less competition from Amazon!
Is Amazon even dominant in France or Germany?
It has a 17.5% share of French e-commerce, which itself is about 9.9% of total retail. So either a 17.5% share of online retail and a 1.73% market share of retail overall.
https://www.kantarworldpanel.com/global/News/E-commerce-heads-the-digital-revolution-in-France https://www.marketplacepulse.com/stats/france-ecommerce/france-e-commerce-sales-share-of-total-retail-60#:~:text=From%209.1%25%20in%202018%20it,%25%20to%209.9%25%20in%202019.&text=Source%3A%20French%20E%2DCommerce%20Federation%20(Fevad)
It has a 17.5% share of French e-commerce, which itself is about 9.9% of total retail. So either a 17.5% share of online retail and a 1.73% market share of retail overall.
https://www.kantarworldpanel.com/global/News/E-commerce-heads-the-digital-revolution-in-France https://www.marketplacepulse.com/stats/france-ecommerce/france-e-commerce-sales-share-of-total-retail-60#:~:text=From%209.1%25%20in%202018%20it,%25%20to%209.9%25%20in%202019.&text=Source%3A%20French%20E%2DCommerce%20Federation%20(Fevad)
It has a larger market share in Germany – 27% of e-commerce, which is 13.8% of total retail overall. So a 27% share of online retail, and a 3.73% of retail overall.
Is this really a dominant position?
https://ecommercenews.eu/27-of-german-ecommerce-generated-on-amazon/
https://www.marketplacepulse.com/stats/germany-ecommerce/germany-e-commerce-share-of-total-retail-sales-51#:~:text=From%2013.2%25%20in%202017%20it,%25%20to%2013.8%25%20in%202018.
Is this really a dominant position?
https://ecommercenews.eu/27-of-german-ecommerce-generated-on-amazon/
https://www.marketplacepulse.com/stats/germany-ecommerce/germany-e-commerce-share-of-total-retail-sales-51#:~:text=From%2013.2%25%20in%202017%20it,%25%20to%2013.8%25%20in%202018.
Here's @AuerDirk on the complaint, and why it gets the economics of platforms wrong. https://twitter.com/AuerDirk/status/1326164576661098496
