Unpacking Amazon's Dominance: The anticompetitive effects of Amazon’s business model.

In the face of Amazon's vast expansion as the dominant e-commerce platform across numerous nations, a critical analysis has emerged highlighting the complex challenges posed by its business practices, particularly those centered around its Prime membership program. Despite consistent revenue growth and its reputation for consumer benefits like lower prices and faster delivery, there are growing concerns that Amazon's strategies may undermine competitive market structures.

This scrutiny comes amidst various antitrust investigations that have yet to fully address the anti-competitive impacts of Amazon's business model. The discussion broadens beyond consumer welfare—traditionally measured by price—to consider the broader effects of Amazon’s interlinked practices, which include vertical integration, acquiring competitors, exclusionary tactics, and imposing unfair trade conditions.

The paper argues for a dual approach in tackling these issues, drawing on EU and UK competition law frameworks. It advocates for proactive legislation, such as the EU’s Digital Markets Act and the UK’s forthcoming Digital Markets, Competition and Consumer Bill, alongside more stringent merger controls. Additionally, it calls for reactive measures to address abusive conduct more effectively.

This nuanced perspective aligns more closely with recent shifts in the EU's approach to competition law and signals a growing inclination among US progressives to also seek reforms in antitrust enforcement. Such developments underscore the need for a balanced approach to regulation that safeguards competitive markets while scrutinizing the long-term effects of dominant players like Amazon.

See article from SSRN Here