Amazon CEO Andy Jassy (Andy Jassy) faced new regulators and legislators in his first television interview after taking over as founder Jeff Bezos two months ago. In the new antitrust review principle, he proposed a familiar case.
“When you look at whether a company has a monopoly, the first thing you have to look at is what market segments they have,” said Jassi In an interview with Jon Fortt of CNBC at Amazon headquarters, Broadcast on Tuesday morning. “Our retail business only accounts for about 1% of the global retail market share. It is nowhere near the majority share.”
He said that due to the lack of competition, monopoly power is defined as the ability to “raise prices in an unconstrained manner.”
“We compete with very large companies,” Jassy said. “These companies are Wal-Mart, Target, and Kroger, as well as some very successful digital companies, such as eBay, Etsy, and Wayfair. We don’t have the ability to increase prices in any unconstrained way. In fact, if you look at Looking at our usual practice, we will continue to reduce prices because of the fierce competition in these markets.
“Sometimes the rhetoric sounds good, but you have to look at the reality. In 1% of the global retail industry, it is hard to say that this is a monopoly.”
His comments indicate that despite the changes in Washington, DC, Amazon plans to stick to its long-term defense. The company has long argued that if the market is defined as a global retail industry, it has no monopoly power.
However, Widely follow the research of the eMarketer project Amazon’s share of the US e-commerce market will increase from 39.8% in 2020 to 40.4% in 2021.
Respectively, FactSet’s latest report Said that, taking into account third-party sales, consumers now spend more on Amazon than Wal-Mart.
When the Yale Law Review published her article, Lina Khan, the new chairman of the Federal Trade Commission, attracted national attention while in law school. “Amazon’s antitrust paradox.” She believes that the so-called “consumer welfare standards”-regulators view prices narrowly-are not enough for the digital economy. Khan believes that a company like Amazon can abuse its market power, even if it uses this power to lower prices for consumers instead of raising them.
Watch an excerpt from the interview below.