(Drivebycuriosity) - The Biden Administration, represented by the Federal Trade Commitee (FTC), America`s antitrust body, is preparing a big attack on Amazon ( politico). The coming law suits could be the crown of an anti-Amazon campaign which started around 2014 ( driveby). The crusade is based on the claim that Amazon is a monopoly. In the year 2017 a law student named Lina Khan published a paper with the claim the Amazon will become a monopolist, which turned her into the Jeanne d'Arc of the antitrust community (yalelawjournal reason). In 2021 President Biden announced the Khan chair of the mighty FTC.
What is the Amazon monopoly claim based on? Here are the facts, based on the recently published quarterly results:
In the second quarter 2023 Walmart`s e-commerce segment grew 24% Y-oY (image above cnbc ). Amazon`s online store grew just 5% in Q2 (image below, first line ir.aboutamazon). So Walmart´s e-commerce grew about five times as fast as Amazon`s.
The Amazon monopoly caller also complain about the strength of AWS, Amazon`s cloud business, which grew 12% Y-o-Y (image above ). In the same time competitor Azure, a segment of Microsoft, grew 27% (statista ).
The growth numbers indicate a healthy competition. Amazon is far away from becoming a monopoly. Quite contrary, the numbers show that the company is losing market share.
The Amazon monopoly claim is not based on facts. Activists like Lina Khan are using the false accusation for their crusade against private business. The crusaders hate Amazon because it is big & successful - and more popular than the Biden Government ( stratechery). Khan & Co.
try to harm a company which is popular for low prices - benefiting especially low income groups - and they attempt to
destroy a service used by millions.
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