Comment Re:Good news for BN? (Score 1) 218
But you apparently have not read anything I wrote, because I just said exactly how a low-cost retailer could hurt consumers. I kinda assumed that you would be smart enough to make the leap from "Nick is bitching about Amazon reducing consumer choice," to "Nick is arguing that monopoly's like Amazon's are dangerous because they reduce consumer choice."
Amazon refusing to sell one particular business's product is not a meaningful reduction in consumer choice. Amazon is not the sole seller of books, or of books online. They have no "effective monopoly" outside of their own Amazon marketplace - and even then others can compete against Amazon, by selling products on Amazon.
1. Prove it. Seriously. I'm making a legal case, under the Sherman Anti-Trust Act, so to actually prove this you'll have to read the United States Code, not an Economics Textbook. Good luck proving this one either way. As far as I can tell Amazon is the definition of a "gray area" when it comes to antitrust law.
Wiki blurb on Anti-Trust Act: "Every person who shall monopolize, or attempt to monopolize, or combine or conspire with any other person or persons, to monopolize any part of the trade or commerce among the several States, or with foreign nations, shall be deemed guilty of a felony [. . . ]"[13]
So has Amazon monopolized book sales? No, there are still retail bookstores who can continue to sell the books.
Is Amazon trying to monopolize online book sales? Not particularly - other competitors exist, and they're not trying to force a publisher to only sell through them. They are trying to get a better contract, but that's normal business negotiation.
The only way you can call Amazon a monopoly is by using a nonsensical definition that does not fall under the language of this act. (Hint: If your definition makes every business a monopoly, your use of the word monopoly becomes useless)
2. Irrelevant. Amazon is a marketplace. It has a monopoly on itself. If it's marketplace is large enough that it can make or break publishers then it can, by definition, engage in anti-competitive behavior under the terms of the law. And it does not have the legal right to do that, no matter what your economic textbooks say.
When Amazon isn't allowed to negotiate what it sells in its own online store, you've effectively taken over ownership of Amazon. Who are you giving that ownership to, and what are you planning to do to compensate Amazon's owners?
Do you know the publisher in question was accused of being a part of a price-fixing cartel with Apple? They were trying to keep book prices high, and they don't have the "legal right to do that".
Now I learn that if Amazon wants to make book pricers lower, they don't have the "legal right to do that", either.
What purpose are these laws serving?