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Evaluate Whether Amazon Should Be Regulated Due to Its Monopoly Power (12)

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Evaluate whether amazon should be regulated due to its monopoly power (12)

Amazon should be regulated due to its monopoly power, as the working conditions for its employees are awful. The company treat workers abusively- an example of this being where Amazon hired paramedics to revive workers suffering from heat-related problems rather than buy air conditioners. Due to their dominance in the book market, amazon have become a 21st century monopoly and thus seem to only care about their profits as a posed to the conditions of their workers. The consequence of this is that Amazon may have a negative image in the media and may lose repeat customers due to their unethical ways.

Secondly, Amazon should be regulated due to the brutal way that they also deal with suppliers. Amazon have frequent and on-going fights between their publisher ‘Hatchette’ over the pricing of eBooks. With amazon holding 65% of the e-book market, the company tried to level the pricing of e-books across the board- however other companies objected. Amazon also squeezed the publisher by delaying delivery of its books- sometimes by week. This difficult relationship between amazon, its suppliers and competitors means that the company is isolating itself. This could be a negative as suppliers may not be willing to give them their supplies if they become more and more inconvenient. Also, having good relations with other possible competitors could increase profits for the company as they may be able to work together by offering deals and much more to get more customers attention.

On the other hand, Amazon should not be regulated, as it is only a dominant player in the book market. In other markets, Amazon is struggling to keep up. Amazon shouldn’t be regulated due to its success in only one market that has e very competitive background. The eBook market is very competitive and by regulating Amazon, would mean that many other eBook competitors should technically be regulated also such as: Apple, Google, Wal-Mart and many more. Without the competition in the market, customers would have limited options and may be unhappy with the results. Amazons success in the book market doesn’t necessarily guarantee them success in other markets, and thus not a threat.

Also, although there are issues with Amazons ethics, customers still purchase from the site- even if deliveries are late or workers are treated abusively. Customers still purchase e-books on amazon, as it is quick, cheapest and the most attractive offer to customers. If customers see no problem and benefit from amazons services- why should it be regulated? It is providing consumers with cheap, affordable options which may not be available elsewhere.

Overall, I believe that Amazon should be regulated due to its brutal working conditions for employees and their blunt way of dealing with suppliers. They abuse their power in the market to make even higher profits in an unethical way. The government should make amazon give better pay and conditions for workers, treat publishers more equally and price their eBooks at prices that suppliers accept.

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