Not many companies are widely loved by the general population, but Amazon has a large following of daily users. Because of its growth, some experts wonder if they are becoming too big, approaching a total monopoly. Should the government intervene before the online shopping super website grows to a size that hurts other industries? Joshua Phillipp, Monica Eaton-Cardone and Pierre Debbas visit Bold TV and Innovators with Jane King to share their opinions on Amazon and the possible call for government intervention.
Amazon approaching a monopoly may have a negative effect on the future of small businesses. Forty-eight percent of the U.S. employee population is employed by small businesses, and that number is declining every year, largely as a result of large corporations. There is a large presence of knockoffs on Amazon. They have low prices that others cannot compete with. Should Amazon be responsible for these knockoffs being sold on their site? Experts also say that their movement into other areas will have a ripple effect on other industries. They acquired Whole Foods for $18 billion, revolutionizing grocery shopping. What’s next from there?
Some experts do not believe that Amazon approaching a monopoly is the most salient issue. We are targeting the wrong problem. Consumers are changing; technology is evolving. The biggest problem that creates the largest impact is regulation. The regulatory environment needs to get up-to-date with technology. Another issue is that they use information about consumers to show them products that increase their appetite for buying, and it works. Then, there is no regulation that can keep up with the innovation that Amazon has introduced to the industry. Other large corporations such as Google, Facebook and Walmart will be affected by government decisions that concern Amazon. Will they be allowed to grow or be controlled by regulations?