Will the Government Put the Reins on Amazon?

Will the Government Put the Reins on Amazon?

In a relatively short period of time, Amazon has exerted an enormous amount of influence over a broad spectrum of American life. From the groceries we buy to the movies and television shows we watch, Amazon has been setting the prices and driving potential competition out of business. Its prices may seem low, but “Amazon has actually quietly been hiking prices for consumers in ways that are not always clearly visible,” the Federal Trade Commission chair, Lina Khan, tells David Remnick, but “can result in consumers paying billions of dollars more than they would if there was actually competition in the market.” Khan, who is thirty-four, published an influential paper about applying antitrust law to Amazon before she was even out of law school; now she is putting those ideas into practice in a suit against the company. “Amazon’s own documents reveal that it recognizes that these merchants live in constant fear of Amazon’s punishments and punitive tactics,” Khan said. “Ultimately, our antitrust laws are about preserving open markets but also making sure people have the economic liberty to not be susceptible to the dictates of a single company.” (The company’s response says that the F.T.C.’s argument is “wrong on the facts and the law.”)

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