In late September, Amazon, one of the world’s largest companies, faced a lawsuit from the Federal Trade Commission (FTC). The FTC’s mission is to safeguard consumers by preventing fraud, deception, and unfair business practices.
Amazon stands accused of attempting to maintain a monopoly and stifling competition through unfair and anti-competitive tactics that violate federal and state antitrust laws. While students and other young individuals like us are not directly involved in the legal matters, we must assess how Amazon’s past actions have impacted our lives and anticipate future changes.
As the world increasingly embraces virtual experiences, our shopping habits have also shifted. Amazon provides us with unparalleled convenience through swift home deliveries. However, to sustain its growth, Amazon employs an array of strategies to eliminate competitors. Small businesses that pose a threat to Amazon often offer superior services, more affordable prices, and other attributes that outshine Amazon. These businesses are penalized and ultimately forced out by Amazon’s superior size and power.
These affected companies aren’t limited to online “supermarkets,” but also encompass smaller niche brands that struggle to gain recognition and must resort to selling their products through Amazon, albeit at a cost. This fee-based approach allows Amazon to generate revenue while reducing consumer choices. They can also push or hide sellers from us, thus violating antitrust laws.
The outcome of this situation results in higher prices not only for Amazon customers but for other consumers, as Amazon wields the power to influence other producers. The FTC aims to restore lost competition in the market due to Amazon’s monopolistic conduct. The success of this endeavor remains uncertain. There is some hope: in May 2023, Amazon paid $25 million following a minor FTC lawsuit related to privacy violations.
Due to Amazon’s dominance in the online marketplace, it garners over four times more visits than any other platform. An astounding 85% of Gen Z adults report using Amazon in the past four weeks, with 60% using it in the past week.
“Due to Amazon’s dominance in the online marketplace, it garners over four times more visits than any other platform.”
As we transition into adulthood, Amazon plays a significant role in our lives, serving as a go-to source for our purchases—from computers and school-necessities to products for our enjoyment. Remarkably, two-thirds of internet users in the United States have an Amazon Prime Subscription, offering benefits such as free shipping and savings events. Amazon’s reach to not only our generation but the generations above us will forecast its dominance on our own lives.
While Amazon has undeniably improved our shopping experience, there is room for enhancement. If the FTC prevails in the lawsuit, not only could Amazon’s prices potentially become more competitive, but we may also witness an expansion of online marketplaces to shop from. This would lead to lower prices on platforms beyond Amazon. The likelihood of a success is high, particularly given the FTC’s previous victory in May against Amazon and the current, extensive 172-page lawsuit.
An expanded list of go-to online shopping destinations awaits us. Amazon’s previous influence on our choices might diminish as a result. Amazon’s ability to direct us towards certain products could influence our purchasing decisions and shape our growing minds.
A more extensive online marketplace promises a brighter future, benefiting not only us but also future generations.
You must be logged in to post a comment.