{"id":21710,"date":"2020-08-09T11:00:47","date_gmt":"2020-08-09T15:00:47","guid":{"rendered":"https:\/\/www.mdcthereporter.com\/?p=21710"},"modified":"2020-09-12T23:40:01","modified_gmt":"2020-09-13T03:40:01","slug":"amazon-can-become-a-monopoly-if-left-unchecked","status":"publish","type":"post","link":"https:\/\/mdcthereporter.com\/staging\/8357\/amazon-can-become-a-monopoly-if-left-unchecked\/","title":{"rendered":"Amazon Can Become A Monopoly If Left Unchecked"},"content":{"rendered":"

In 2017, one might\u2019ve thought that the entire internet was in shambles. For four hours on Feb. 28, the world was devoid of Netflix<\/span><\/a>, <\/span>Spotify<\/span><\/a><\/span>, Dropbox<\/span><\/a>, <\/span>Pinterest<\/span><\/span><\/a> and thousands of other popular websites.\u00a0<\/span><\/p>\n

What swept the nation was a simple error on Amazon Web Services, an Amazon subsidiary and the largest cloud service provider in the country. The event served as a testament to the puppeteer-like power that <\/span>Amazon<\/span><\/a><\/span> holds on the Internet.<\/span><\/p>\n

\"Amazon
ALEXANDER ONTIVEROS \/ THE REPORTER<\/figcaption><\/figure>\n

We know Amazon as an online store\u2014companies store their products in their warehouses and <\/span>Amazon controls the marketing, shipping, and returns of this stock. However, that\u2019s just a fraction of their profits.\u00a0<\/span><\/p>\n

Amazon owns more than 80 consumer brands. These include Twitch, Whole Foods, Kindle, Prime Music and Video, and Alexa<\/span><\/a> (and her echo counterparts)\u2014just to name a few. Not a day goes by where Amazon doesn\u2019t go out to dominate a new industry.\u00a0<\/span><\/p>\n

Amazon\u2019s business model causes a snowball effect: it obtains the data of buyers, uses it to improve their product suggestions, and leads them to make more purchases. To the average middle-class citizen, this is extremely convenient. They\u2019re not just making it easy to live off Amazon, they\u2019re making it hard not to.<\/span><\/p>\n

After making a profit from their web services, Amazon uses it to reduce the price of their products to an unprofitable level. For example, they once sold their Kindles for $79.99 when it cost $84.25 to make. They do this with many of the products they sell. Then they earn tenfold of the lost money through their web services, constantly flushing money into their products without being afraid of their revenue to earnings margin.<\/span><\/p>\n

How can companies compete with a brand that can afford to not make a profit? Once they realize they don\u2019t stand a chance, Amazon buys them out and dominates their market.<\/span><\/p>\n

This is the foundational issue that lies behind the facade of \u201cFree 1 Day Shipping.\u201d It\u2019s gilded.<\/span><\/p>\n

Amazon is not far from becoming a monopoly\u2014and I don\u2019t use the word lightly. It buys other businesses out like in horizontal integration. It also controls the marketing, shipping, and making of their products like in vertical integration.<\/span><\/p>\n

Yes, it\u2019s convenient to buy a product on Amazon and then receive it at your door two days later. But once it scales to the level where it wants to be, Amazon will be able to increase prices as much as they want. With no other companies offering the same products, we will not be able to do anything about it.\u00a0<\/span><\/p>\n

Just like in the classic board game Monopoly, Amazon is not playing to win now\u2014it\u2019s playing to win later.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

In 2017, one might\u2019ve thought that the entire internet was in shambles. For four hours on Feb. 28, the world was devoid of Netflix, Spotify, Dropbox, Pinterest and thousands of other popular websites.\u00a0 What swept the nation was a simple error on Amazon Web Services, an Amazon subsidiary and the largest cloud service provider in […]<\/p>\n","protected":false},"author":573,"featured_media":21711,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"nf_dc_page":"","tdm_status":"","tdm_grid_status":"","footnotes":""},"categories":[13],"tags":[1458,2019],"class_list":{"0":"post-21710","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-forum","8":"tag-amazon","9":"tag-monopoly"},"yoast_head":"\nAmazon Can Become A Monopoly If Left Unchecked<\/title>\n<meta name=\"description\" content=\"Andy Cabrera argues that the multinational technology company Amazon holds too much power over the economy and can grow into a monopoly.\" \/>\n<meta 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