Amazon used data from its sellers to create competing products: report

Amazon used data from its sellers to create competing products: report

Amazon employees used data from independent sellers on the platform to develop competing products-- in violation of its own policies and statements to Congress, according to a Wall Street Journal report. According to the report, Amazon used the information from other sellers to price items, determine which features to copy or whether to enter a product segment based on its earning potential.

Clara
Clara
Mat McKenzie
Mat McKenzie 0 months

Hmmmm they are becoming more creative in crushing small businesses.. no surprise.

Hershel
Hershel 0 months

If it wasn't for them lying about not doing it, this would have been an entire non-issue. Of course every company is going to use market research to find trends that can be exploited. You find a market that you can cut into and do it cheaper or better and capture those profits for yourself. Literally everyone who has ever sold anything online has done this, big or small. But not everyone on Etsy gets a chance to lie to Congress about it while accepting multiple hundred billion dollar contracts from the CIA.

Skeptic
Skeptic 0 months

We badly need to resurrect real anti-trust enforcement. Under current theory, if the consumer gets lower prices, everything is OK. Amazon using market power to squeeze out innovators and private information to undercut competitors is not OK. Market platform should be separate from product seller.

Skeptic
Skeptic 0 months

America also has a broader monopoly problem as discussed here (with respect to tech giants): https://www.cityandstateny.com/articles/personality/personality/tim-wu-net-neutrality-coiner.html And here on how it is present in most industries: https://www.newamerica.org/open-markets/events/americas-monopoly-problem And the political power it gives them explains why so much of the COVID relief is going to the big corporations not small businesses or people.

TheCurrentModality
TheCurrentModality 0 months

IIRC, it's much worse, Amazon will invest in a product being developed. If the product sells they will simply duplicate it and sell their own, and leave the product investor out in the cold. Sears used to do this all the time. That's one of the scenarios, but I might have messed it up a little.

SickOfTribalisem
SickOfTribalisem 0 months

Oh realllllllllly.. i'm shocked it's not if we are talking about a very old story... and we've all knew it allready... but hey... people forget the news and "history repeates..."

Austin
Austin 0 months

Disgusting practice by Amazon. I have been avoiding them lately. Makes me sad they are so evil.

IvoryDove
IvoryDove 0 months

The new model for monopolization is called "vertical integration". Instead of owning a market, you own the supply chain for a bunch of markets.

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