Amazon's monopsony power: the other antitrust white meat

In 2017, law student Lina Khan shifted the debate on Amazon and antitrust with a seminal paper called Amazon's Antitrust Paradox, which used Amazon's abusive market dominance to criticize the Reagan-era shift in antitrust enforcement, which rewrote the criteria for antitrust enforcement, so that antitrust no longer concerned itself with preventing monopoly, and only focused on "consumer harm" in the form of higher prices. Read the rest

Facebook and Big Tech are monopsonies, even when they're not monopolies

Big Tech is often in a monopoly situation (for example, Amazon's Audible owns something like 90% of the audiobook market), but even where they aren't monopolies, they are often monopsonies: a single buyer that controls the whole market that a variety of sellers want to sell into. Read the rest

Netflix walks away from App Store payments, costing Apple up to $256m/year

When Ios launched, Apple's App Store took a 30% royalty on all apps sold. App vendors responded in large part by switching to free apps that charged in-app for annual subscriptions and other fees, prompting Apple (by then the dominant smartphone seller and critical to many companies' businesses) to ban in-app purchases except through Apple, which would charge a 30% commission on the lifetime revenues from each user. Read the rest