AMAZON FACING A LEGAL CHALLENGE
IN SOME OTHER NEWS IN REGARDS
TO ITS PRICING AND ALLEGED ANTI
COMPETITIVE PRACTICES,
WASHINGTON DC ATTORNEY GENERAL
KARL RACINE SUING THAT
TECH GIANT ACCUSING AMAZON OF
UNFAIRLY INFLATED PRICES AND
STIFLING COMPETITION. JOINING
ME NOW IS THE DC AGM SELF
QUARANTINE AT A GENERAL GOOD TO
SEE YOU IT WAS JUST ABOUT 10
DAYS AGO THAT I SAW YOU LAST I
DO WANT TO TALK ABOUT THIS
LATEST SUIT, WHAT IS YOUR CASE
AGAINST AMAZON.
>> SURE LET ME EXPLAIN THE
FOCUS ON OUR CASE IS AN
ANTITRUST ACTION
AGAINST AMAZON. WHAT'S REQUIRED
FOR US
TO ESTABLISH THAT AMAZON HAS IS
A MONOPOLIST AND IS USING ITS
POWER IN AN
EGREGIOUS WAY THAT HAS LEGAL
LIABILITY SO WE'RE FOCUSED ON A
PARTICULAR PROVISION THAT
AMAZON REQUIRED JUST ALL OF ITS
3RD PARTY SELLERS TO AGREE TO
THAT PROVISION GIVES AMAZON
PRETTY HEFTY COMMISSION ON THE
SALE THEN REQUIRES THOSE 3RD
PARTY SELLERS, NOT TO SELL ANY
OF THEIR GOODS
NOT EVEN ON THEIR OWN WEB SITE
FOR ANYTHING LESS THEN THEY'VE
AGREED TO
SELL IT. ON AMAZON FOR WHAT
THAT MEANS IS
THOSE GOODS ARE UNUSUALLY HIGH
PRICED ARTIFICIALLY HIGH PRICE
THROUGHOUT THE INTERNET.
ALL FOR ONE
REASON BECAUSE AMAZON MADE THE
3RD PARTY SELLER AGREED TO
THAT. WE THINK THAT IS AND I
TRUST KIND UP THERE NEEDS TO BE
REINED IN.
>> SO ATTORNEY GENERAL I WANT
TO TALK ABOUT WHAT THIS MEANS
FOR THE CONSUMER IT'S MY
UNDERSTANDING IS THAT YOUR CASE
AS SAYS THIS IS NEGATIVELY AND
BACK TO THE CONSUMER BY DRIVING
UP PRICES IS THAT RIGHT.
>> THAT'S EXACTLY RIGHT AND 3RD
PARTY SELLERS TELL YOU THIS ALL
THAT THAT THEY WANT TO BE ON
AMAZON'S PLATFORM. BUT PART OF
THE DEAL IS THAT THEY AGREED TO
THESE TERMS THAT DO NOT ALLOW
THEM
TO SELL THE SAME GOODS ON OTHER
LESS EXPENSIVE THAT OBVIOUSLY
IMPACTS CONSUMERS AND IT MAKES
THE GOODS MORE EXPENSIVE FOR
CONSUMERS. LET ME TELL YOU ONE
OTHER THING ABOUT THAT CAUSE
THAT CAUSE WAS THE SUBJECT
OF INCOME MURRAY IN EUROPE,
WHAT'S THE EUROPEANS
CHALLENGED AMAZON AND THEY
BACKED DOWN AND ELIMINATED THAT
CLAUSE THAT CAUSE ALSO WAS
THE SUBJECT OF CONGRESSIONAL
HEARINGS LED BY SENATOR
BLUMENTHAL AMAZON ESSENTIALLY
PROMISED THAT THEY WOULD GET
RID OF THAT CLAUSE THEY
ACTUALLY DID NOT THEY
MOVED IT AND THEY'RE STILL
MAKING 3RD PARTY SELLERS CHARGE
HIGH PRICES THROUGHOUT THE
INTERNET USING THE
MARKET POWER.
>> TO DO SO SO WHAT DOES THIS
MEAN FOR THE 3RD PARTY SELLERS.
I MEAN THE CRUX OF THIS DOES
SEEM TO BE THAT THE CONSUMER IS
THE ONE AT A LOSS HERE WELL
POSITION DOES THE DOES THIS PUT
THESE 3RD PARTY SELLERS AND.
>> WELL I THINK IF WE'RE
SUCCESSFUL IN THIS LAWSUIT.
AND WERE SUCCESSFUL IN GETTING
AMAZON CAN NO LONGER ENFORCED
THAT CLAUSE. IT MEANS THAT 3RD
PARTY SELLERS TO BENEFIT FROM
THE MARKET THAT IS AMAZON'S
IT'S 50% OF ONLINE SALES, BUT
ALSO HAVE THE REST OF
THE INTERNET TO SELL THEIR
GOODS AT A PRICE THAT THEY WANT
NOT AT AN INFLATED PRICE THAT
AMAZON REQUIRES AND.
>> YOU KNOW IT IS INTERESTING
BECAUSE WE KNOW INFLATION IS
GOING UP ACROSS THE BOARD AND I
THINK PEOPLE SEE IT ON A LOT OF
STAPLES A LOT OF HOUSEHOLD
ITEMS AND AMAZON CERTAINLY IS A
PLACE THAT THEY TURN TO FOR
THIS
ATTORNEY GENERAL HOW LONG HAVE
YOU BEEN LOOKING INTO THIS
ALLEGED PRACTICE THAT YOU'RE
SAYING HERE BY AMAZON.
>> WE'VE BEEN REVIEWING THE
MATTER FOR ABOUT A AND TO BE
SURE WE'VE HAD NUMEROUS
MEETINGS AND CONVERSATIONS WITH
AMAZON ABOUT
WE WERE HOPING THAT OUR
CONVERSATIONS WOULD LEAD TO A
RESOLUTION WHERE THEY SIMPLY
BUT WOULD NO LONGER BREATHE
LIFE INTO THIS BUT THEY REFUSED
TO DO SO AND NOW WE'RE
FILING SUIT.
>> THE FACT THAT JEFF BEZOS WE
LEARNED TODAY WILL BE STEPPING
ASIDE OFFICIALLY ON
JULY 5TH. AND ANY JASSY WILL BE
TAKING OVER THIS IS NEWS THAT
WE
ARE READY NEW NOT NEW NEWS TO
THE MARKET PER SE OR TO
AMAZON CUSTOMERS. BUT THE BASIS
WILL BE STEPPING ASIDE IS GOING
TO BE A NEW BOSS
IN 2 HOW HOW DOES THAT CHANGE
YOUR AND A POTENTIAL OUTCOME
THAT YOU ANTICIPATE.
>> YOU KNOW, I'M NOT SURE THE
APPROACH IS GOING TO CHANGE
WE'RE NOW IN SO WE'RE GOING TO
MAKE OUR ARGUMENTS ARE GOING TO
SEE DOCUMENTS. AMAZON WILL
LIKELY TRY TO GET THE MATTER
DISMISSED. I DON'T THINK
THEY'LL
BE SUCCESSFUL AND AT THE END OF
THE DAY THEY'LL HAVE TO MAKE A
DECISION AS TO WHETHER TO
PROCEED IN
THIS LAWSUIT OR DO THAT WHICH
WERE SEEKING AND THAT IS TO
STOP ENFORCING. THIS PARTICULAR
CLAUSE.
>> SO I DO WANT TO JUST KNOW
HERE OBVIOUSLY AND BALANCED
REPORTING WHAT WE HEARD FROM
AMAZON, HOW YOU DISCUSS THIS A
LITTLE BIT EARLIER ATTORNEY
GENERAL BUT AN AMAZON
SPOKESPERSON SAYING JUST THAT
THIS IS
ACTUALLY EXACTLY BACKWARDS AND
SELLERS SET THEIR OWN PRICES
FOR THE PRODUCTS THAT THEY
OFFER IN AMAZON STORE IT ALSO
SAYING THAT WHAT THEY DO IN
TERMS OF COMPETITION. IT ISN'T
ANY DIFFERENT THEN OTHER
COMPANIES IN TRYING TO GET THE
BEST DEAL WHAT IS YOUR RESPONSE
TO THAT.
>> WELL THERE'S A HUGE FIRST
OF ALL. AMAZON DOES NOT REALLY
TELL YOU MUCH ABOUT THE
PROVISION THAT WE'RE LIVING IT
SECONDLY
AMAZON HAS OVER 50% OF THE
MARKET SHARE OF THE ONLINE
SALES, THEY'RE VERY DIFFERENT.
THEN A COMPANY THAT ONLY HAS 2%
3% OR 5% OF THE MARKET SO THAT
50% IS
MONOPOLY POWER. AND BY
REQUIRING 3RD PARTY SELLERS TO
ARTIFICIALLY MAINTAIN THOSE
HIGH PRICES ON WEBSITES THAT
ARE NOT AMAZON THEY ARE
CONTROLLING THE PRICE IN
A WAY THAT WE ALLEGES UNLAWFUL
AND THAT HURTS CONSUMERS.
>> SO FOR CONSUMERS ON AVERAGE
ATTORNEY GENERAL I'M WONDERING
HOW MUCH MORE YOU'RE FINDING
THAT
THEY PAY IS IT A SIGNIFICANT IN
GREECE ONE THAT YOU CAN
QUANTIFY.
>> YOU KNOW IT'S HARD TO
QUANTIFY THAT
RIGHT NOW THIS WHERE WE'RE
GOING TO BE AND DISCOVERY
AMAZON IS GOING TO HAVE THEIR
EXPERTS. WE'LL HAVE OUR EXPERTS
BUT THERE IS NO DOUBT. THAT A
WHOLE BUNCH OF 3RD PARTY
SELLERS WHO ORDINARILY
WOULD OFFER THEIR GOODS ON
OTHER SITES, INCLUDING THEIR
OWN FOR LESS OF A
LESS MONEY THEN AMAZON IS
PUTTING ON THEIR ARE BEING
DENIED THAT RIGHT AND PRIVILEGE
AND EVERYDAY CONSUMERS ARE
PAYING MORE FOR THOSE GOODS AND
I WANT TO SPEND
>> ATTORNEY GENERAL I DO WANT
YOU TO TALK ABOUT THE POSITION
THAT THESE 3RD PARTY SELLERS
ARE IN BECAUSE A STORY THAT
WE'VE BEEN DOING FOR YEARS NOW
IS IF YOU'RE A SMALL BUSINESS
OR YOUR BIG BUSINESS. I MEAN
THIS DAY IN AGE WITH SO MUCH
ACTIVITY HAPPENING ON AMAZON.
YOU'RE BASICALLY IN ORDER TO
COMPETE AS A BUSINESS YOU DO
HAVE TO SELL ON AMAZON AND SO
IT
SEEMS LIKE THE ONUS HERE YOU'RE
SAYING OBVIOUSLY IS ON AMAZON
BECAUSE FOR THESE 3RD PARTY
SELLERS THEY MIGHT NOT REALLY
HAVE OTHER OPTIONS, THIS IS
SOMETHING THAT THEY ABSOLUTELY
HAVE TO DO IS THAT THE CASE.
>> I THINK YOU EXPLAIN IT
EXACTLY RIGHT. THIS 3RD PARTY
SELLERS REALLY DON'T HAVE A
CHOICE THEY'VE GOT A 50%
MARKET THAT OWNS THE DIGITAL
MALL TELLING THEM WHAT TO DO
IN THAT PRESS RELEASE THAT YOU
JUST READ FROM AMAZON AMAZON
MAKES IT SEEM LIKE THE 3RD
PARTY SELLERS SET THEIR
OWN PRICE. VOLUNTARILY AGREE TO
DO THIS AND THAT WE ALL KNOW
THAT AMAZON IS
A TIGHT ON THE ONLINE
MARKETPLACE AND IT'S USING ITS
POWER IN A WAY THAT
ARTIFICIALLY KEEPS PRICES HIGH.
I THAT'S THE LEGAL UNDER THE
ANTITRUST LAWS.