Guest Amanda Lewis, partner at the law firm Cuneo, Gilbert, and LaDuca, and co-founder of the Responsible Online Commerce Coalition, joins Ryan Grim to discuss the antitrust lawsuits against Amazon and Google. They delve into Amazon's control over pricing, Google's manipulation of internet access, and the challenges faced by third-party sellers. The podcast also explores Amazon's vertical integration and exploitation of monopoly power, its response to political scrutiny, and the lack of transparency in the trial between Google and the Department of Justice.
Amazon's pricing policies harm third-party sellers and limit competition, highlighting the need to address its actions for consumer welfare.
The ongoing trial against Google raises concerns about corporate secrecy and privacy, but also brings attention to anti-competitive practices and the possibility of greater transparency.
Deep dives
The Amazon Lawsuit: Holding the Company Accountable
The FTC and 17 state attorneys general filed a landmark lawsuit against Amazon for its anti-competitive conduct towards third-party sellers. The lawsuit addresses the effect of Amazon's pricing policies on both businesses and consumers. Amazon's tactics include suppressing the buy box for sellers who offer lower prices on other platforms and enforcing exclusive contracts that limit competition. The case is focused on how Amazon is maintaining and exploiting its monopoly power, rather than how it acquired it.
The Google Trial: Unveiling Anti-competitive Behavior
The ongoing trial against Google is a significant moment for antitrust. The government is arguing that Google is maintaining its monopoly in the search and search ads market by thwarting rivals and controlling access to customers and data. The trial has brought attention to issues of corporate secrecy and excessive deference to privacy concerns, resulting in limited public access to crucial information. However, the exposure of Google's actions and public interest in the trial may lead to greater transparency and accountability.
Consumer Implications of Amazon's Behavior
Amazon's anti-competitive conduct has significant implications for consumers. The company's pricing policies harm third-party sellers, who are real businesses with employees and rely on Amazon for their economic livelihood. By suppressing lower-priced alternatives and controlling access to customers, Amazon effectively sets artificially high prices. Sellers who offer lower prices elsewhere face punishment, leading to a lack of competition and limited choice for consumers. The situation highlights the need to address Amazon's actions to ensure consumer welfare.
The Need for Remedies and Legislative Action
If found guilty, remedies for Amazon could include behavior changes and potential divestiture of certain aspects of its business. However, behavioral remedies alone may not be sufficient to prevent Amazon from shifting its anti-competitive practices. Legislative action is crucial in addressing the issues raised not only with Amazon, but also with other tech giants like Google, Facebook, and Apple. Legislation would provide a broader and more comprehensive approach to regulating monopolistic conduct and promoting fair competition in the digital marketplace.
The U.S. Federal Trade Commission and 17 state attorneys general filed a antitrust lawsuit against Amazon on Tuesday. Meanwhile the U.S. Department of Justice's trial against Google is shrouded in secrecy. This week on Deconstructed, we break down the antitrust lawsuits the federal government has brought against Google and Amazon, and the anticompetitive and monopolistic practices on trial.
Ryan Grim is joined by Amanda Lewis, a partner at the law firm Cuneo, Gilbert, and LaDuca and co-founder of the Responsible Online Commerce Coalition. They are also joined by Matt Stoller, director of research at the American Economic Liberties Project and author of “Goliath: The 100-Year War Between Monopoly Power and Democracy.”
If you’d like to support our work, go to theintercept.com/give, where your donation, no matter what the amount, makes a real difference.
And if you haven’t already, please subscribe to the show so you can hear it every week. And please go and leave us a rating or a review — it helps people find the show. If you want to give us additional feedback, email us at Podcasts@theintercept.com.