Is Amazon A Monopoly?

In the article Is Amazon A Monopoly? By Sergio Hernandez and The Week, opposing viewpoints argue against each other on if Amazon is “a monopoly”. One viewpoint suggests that Amazon has “achieved a level of dominance that merits the application of a very old label: monopoly.” It suggests that Amazon undercuts its competitors, squeezes suppliers, and punishes those who seek to undermine it. This viewpoint seems to believe the Amazon has achieved a natural monopoly where it’s a far more efficient and known suppliers than any other “online” supplier. However, the key word there is “online” for an opposing viewpoint suggesting that Amazon can’t be a monopoly. This viewpoint suggested that while Amazon dominates online, it can’t be considered a monopoly because it competes with grounded stores such a Walmart, Target, and Home Depot. It claims that though Amazon has a large part of the market in a specific areas, online, it’s can’t be considered a monopoly because these other suppliers affect the market price of goods even though they are not online.

1 Comment »

  1. duongt Said,

    November 11, 2016 @ 8:19 pm

    I believe there is a little bit of misunderstanding. The natural monopoly is when the firm supplies the entire market at lower costs than two or more firms, so other firms cannot compete with it. It is only said that “amazon’s intention is not to saddle customers with higher prices”, which does not necessarily mean that amazon provides the good at lower cost than other firms.
    I think that viewpoint is just suggested that Amazon is a monopoly, not really a natural monopoly.

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