Amazon has the ability to set prices, which can have major consequences and destroys competition.
“If Amazon now controls the pricing in the book industry, just imagine what it can do in the broader world of retail” — Alex Shepard
Being able to set prices in a market is a distinguishing characteristic of a monopoly. Those who can set their own prices and still hold control of a market have complete control and are detrimental to capitalistic societies. Price fixing is considered illegal in the United States and many other countries. In the book industry, Amazon ran many competitors out of business by setting lower prices that no one else could compete with, then raised them back up after destroying their competition. With control over the book industry, Amazon has positioned itself to do the same in other industries.
Shepard, Alex. “How Amazon Is Changing the Whole Concept of Monopoly.” The New Republic, 19 Jun 2017, https://newrepublic.com/article/143376/amazon-changing-whole-concept-monopoly. Accessed 11 Nov. 2017.
