The Atlantic has a piece by Stacy Mitchell, co-director of the Institute for Local Self-Reliance, in which she writes that the Federal Trade Commission (FTC) antitrust lawsuit against Amazon could reveal where Amazon really make sits money.
An excerpt:
“If you read the recently unsealed materials from the federal antitrust lawsuit against Amazon, you’ll see why the company wanted to keep them under wraps. According to the unredacted notes from one meeting, Jeff Bezos directed his team to stuff more ads into search results, even if it meant accepting more ads internally categorized as irrelevant to what users were looking for. Other quoted documents reveal the company working to conceal a mysterious price-hiking algorithm, in part because ‘of increased media focus.’ Similarly unflattering nuggets abound.
“But here’s something you won’t find in those materials, because it was deemed too sensitive to unredact: precisely how Amazon makes its money. Nearly 30 years after the company was founded, we still don’t really know. Amazon has long cultivated the impression that it operates its shopping platform at razor-thin margins, relying instead on its cloud division, Amazon Web Services (AWS), for much of its profit. And yet the Federal Trade Commission’s lawsuit contends that Amazon’s e-commerce business is, in fact, “enormously profitable.” The resolution to this dispute is likely to figure heavily in whether the judge finds that Amazon is merely a benevolent retail giant or a destructive monopoly. And regardless of what happens in the Amazon case, the fact that large corporations have been able to keep such basic information private helps explain why policy makers, journalists, and the public were so slow to recognize the growing problem of monopolization in America.”
You can read the entire story here.
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