dinsdag, januari 29, 2019

The case against Amazon: decreasing edge innovation and regulatory shortcomings

Forbes has possible remedies to curb Amazon, based on the case brought against it by Williams-Sonoma over copying furniture.

The complaint
  • Abuses dominant platform
    • monopoly leveraging (vertical integration) aimed at profits in ancillary business (not fending off rival e-commerce platform)
    • has user data, uses search to steer to Amazon products
    • advertises on Google with same keywords driving up prices and getting higher ranking
  • Trademark infringement
    • decreases edge innovation (rather than driving up prices)
    • unfair competition (Lanham Act)
Possible remedies
  • Expand IP protection; problem:
      • could harm innovation
  • Expand antitrust enforcement
    • structural relief/separation (define core and prohibit going outside); problems:
      • how to define core
      • no tangible consumer injury
      • takes too long
    • nondiscrimination regime; problems:
      • only for merchants seeking access to Amazon (unlike Williams-Sonoma)
      • complaint-driven process is expensive for small merchants
  • Other protection