Example of how Amazon abuses its market power to drive out competition

by WSBsh*tposter

Since Google got fined is Amazon next?

I think Jeff Bezos is very smart, it’s hard to pin down an extremely obvious anti-trust issue for Amazon because it doesn’t make that much a profit unlike Google, but rest assured that it constantly uses its market power to push out competitors.

Amazon recently came out with the Toshiba Fire TV.

Link 1: www.amazon.com/Toshiba-50-inch-Ultra-Smart-LED/dp/B07D4FQB8S

Link 2: www.amazon.com/Toshiba-43-inch-Ultra-Smart-LED/dp/B07D4F2P26

Scroll down to the review section

Now open the link of a TCL TV, a direct competitor of Amazon’s Fire TV: www.amazon.com/TCL-40S305-40-Inch-1080p-Smart/dp/B01N2UQ43P/

Notice how ALL the top reviews for the TCL is one star, despite the fact that the proportion of one star is lower for TCL than both Fire TVs AND the proportion of 5 star reviews is higher.

Meanwhile ALMOST ALL of Fire TV’s reviews are 5 star.

I think Amazon is waving the flag of consumer welfare while attempting to drive out competition. This is most obvious with prime services. You pay a fixed fee for a bundle of services with a lot of value. The value of that bundle is insane, but there is no way in hell it is profitable. A video subscription alone probably costs your entire prime membership to operate, but Amazon is willing to lose that money today because the more people transact through Amazon, the less people transact elsewhere, and eventually there won’t be an “elsewhere” left.

Where is it getting the money? Through AWS. Google and Microsoft are actually competing rationally in the cloud space because both of them have profits to protect, so they are not just handing cloud services for free like candies.

Bottom line, Amazon is stamping out competition.

Discuss.

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