Amazon has sharply criticized a looming antitrust bill in Congress that it says unfairly targets the company and could degrade its customers’ experience, reported Reuters. Amazon is saying the bill unfairly singles the retailer out while not subjecting rivals to similar regulations.
On Wednesday Amazon said in a blog post that the bill “jeopardizes two of the things American consumers love most about Amazon: the vast selection and low prices made possible by opening our store to third-party selling partners, and the promise of fast, free shipping through Amazon Prime.”
It argued the bill only targets one retailer, Amazon, by requiring a market value of at least $550 billion to qualify for regulation and that rivals like Walmart, Target and CVS were excluded.
“In 2021, Walmart had annual revenues of $559 billion, nearly $90 billion more than Amazon,” it added. “But Walmart is excluded despite also being a large retailer that allows small businesses to sell in its online marketplace.”
Media outlets have said the Senate could vote on the bill as early as this month. The measure passed the Senate Judiciary Committee in January, despite hefty lobbying from top executives like Apple Chief Executive Tim Cook. It also passed the House Judiciary Committee last year.
Senators Amy Klobuchar and Chuck Grassley, who co-sponsored the measure called the American Innovation and Choice Online Act, say the measure is necessary to protect small businesses. The bill has received the backing of small business groups such as the Main Street Alliance and Small Business Rising.
Amazon argued the bill could harm the hundreds of thousands of small businesses that sell goods on its website as its large fines for violations “would make it difficult to justify the risk of Amazon offering a marketplace in which selling partners can participate.”
It said the bill would mandate “Amazon allow other logistics providers to fulfill Prime orders” and could make it “potentially impossible in practice, for Amazon and our selling partners to offer products with Prime’s” free two-day shipping.
Big tech firms including Facebook and Apple, have been under pressure in Congress amid allegations they have abused their outsized market power. A long list of bills have been proposed to rein them in, but none have become law.
Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.
Featured News
Chamber of Commerce Sues to Overturn FTC Non-Compete Ban
Apr 24, 2024 by
CPI
FTC Chief Warns of Healthcare Price Fixing Risks Amid Tech Advancements
Apr 24, 2024 by
CPI
Amazon’s Investment in Anthropic Faces Antitrust Scrutiny
Apr 24, 2024 by
CPI
Italian Antitrust Authority Fines Amazon €10 Million for Unfair Trade Practices
Apr 24, 2024 by
CPI
Tuta Mail Raises Alarm Over Google Search Ranking Plunge Amidst DMA Rollout
Apr 24, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI