posted at 03:50
Author Name: Joe Weisenthal
KRUGMAN: Amazon Is Abusing Its Power And Hurting America
Paul Krugman comes out swinging in his latest column, slamming retail giant Amazon for exerting undue market power, and essentially being the Standard Oil of the online books business. He notes that Amazon is not playing the role of monopoly but rather the role of monopsony. He specifically keys off of Amazon's hardball tactics against the publisher Hachette. It's not just about the money, although that's important: By putting the squeeze on publishers, Amazon is ultimately hurting authors and readers. Specifically, the penalty Amazon is imposing on Hachette books is bad in itself, but there's also a curious selectivity in the way that penalty has been applied. Last month the Times's Bits blog documented the case of two Hachette books receiving very different treatment. Both are listed as eligible for Amazon Prime, and for Mr. Ryan's book Amazon offers the usual free two-day delivery. Don't tell me that Amazon is giving consumers what they want, or that it has earned its position.

Posts Archive