alt Hacker NewsThere are no contractions when you look at how unfair market advantages are being played to harm healthy incumbents.
Amazon helped dismantle the entertainment industry. Full stop.
It doesn't mean Amazon's home appliance and home automation product lines or platforms are harming competition. There is robust competition in this sector.
Amazon offers "free" entertainment, subsidizes the cost of series that rival HBO's Game of Thrones production costs using unrelated business units, market those movies and shows for free in the Amazon app, on their website, emblazoned on their delivery vehicles and on every item of packaging. Other companies have to pay hundreds of millions to match this. There is eyeball opportunity cost for consumers, and Amazon is flooding the zone with their free wares. This is a markedly unfair advantage.
Amazon moves US union jobs overseas and trains up low cost crews in Eastern Europe. They buy up once successful studios on the cheap because they all tried to catch up with the stupid steaming game.
Theatrical box office receipts are the biggest revenue driver for studios by a wide margin. Individually, studios could have countered Netflix and Disney by pulling licensing. Amazon in the mix threatened this, because they had existing content licenses and also controlled home media releases. The studios felt cornered by tech giants basically salting the earth. They had to give up healthy Box Office proceeds and exclusivity to chase streaming and defend their access to eyeballs as best they could.
You've heard of Disney eating the mid market film? Amazon ate everything. It left no oxygen in the fish bowl.
Amazon's entertainment business needs to be spun off.
All of that can be true and completely unrelated to Roomba. Nothing should have prevented their purchase of iRobot. That was insanity.
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The contradiction is it’s just your opinion where to draw the lines which differs from Elizabeth Warren’s. You think your lines are good and hers are bad. She doesn’t. Many other interested parties would like half of it and want to change the other half.
The only way out is to reject centrally-planned line-drawing.
The contradiction is that breaking up Google and Amazon would also destroy categories of business where the United States is dominant over other countries.
Prevent them from buying their competitors, for sure, but don't kid yourself into thinking that there are many neat ways to parcel these companies up into neat little independent business units. There is at best a very small number of ways to do this and the government will not get it right, just look at their most recent attempt with Google to strip out Chrome of all things.
Just to be clear on my stance,I agree that blocking the irobot deal was absurd. Context matters in a big way, clearly they were struggling and were basically alone in the market as an American company.
I think you also need to apply that context to Google and Amazon and consider whether the government would do so wisely.