Congress Calls Antitrust Reforms To Limit the Power of Tech Giants
In June, The US Congress has approved 5 legislative bills aimed at tech giants including Amazon to decide between running a marketplace and competing on it. One of the bills — the Ending Platform Monopolies Act — will jeopardize millions of US small and medium-sized businesses by losing access to Amazon’s customers and services.
To inform, Amazon launched a website and e-mailed third-party sellers to warn them about the proposed antitrust legislation limiting their wares on its marketplace.
Amazon email states —
“We’re reaching out to a small group of our sellers to make them aware of a package of legislative proposals, currently in Congress, that is aimed at regulating Amazon and other large technology companies. It is early in the process and the bills are subject to change, but we are concerned that they could potentially have significant negative effects on small and medium-sized businesses like yours that sell in our store.”
The other tech giants that are being affected by these antitrust legislation bills are — Apple, Facebook, and Google.
What Does It Mean For Amazon Sellers?
One thing is quite clear that such bills will make things more difficult and expensive for big tech companies to complete the mergers. Hence, prohibiting monopolization and protecting customers from predatory business practices.
On the other hand, the ramifications of such bills will hurt American small and medium-sized businesses on a larger scale. They will lose the ability to sell as a third-party merchant on Amazon meaning that only 1st party Amazon vendor relations would survive. However, as an alternative, Amazon would be prohibited from selling on their own marketplace and have to spin off Amazon Retail to then operate as a merchant.