Amazon is Reportedly Stifling Competitor Ads

Amazon is no stranger to scrutiny over its business practices. The online marketplace already has a stronghold over fast delivery of consumer goods. But CNBC reported on a recent investigation by Wall Street Journal, revealing the ecommerce giant may be taking their power a step further. Amazon appears to be blocking competitor ads that compete with Amazon’s own goods, like FireTV and the EchoDot. Amazon spokesperson Jack Evans replied to the accusations saying, “News flash: retailers promote their own products and often don’t sell products of competitors…Walmart refuses to sell Kindle, Fire TV, and Echo. Shocker. In the Journal’s next story they will uncover gambling in Las Vegas.”

On this Business Casual snippet, hosts Daniel Litwin and Tyler Kern examine whether Amazon is in the best position to set the rules of a fair market, and why. As benefactors of its own ecommerce platform and its advertising channel, is Amazon overstepping its market power?

KEY POINTS:

  • The WSJ reports Amazon blocks product competitors from advertising alongside its own product line.
  • Is Amazon a fair marketplace if the ecommerce platform also regulates who can advertise?
  • Amazon digital advertising grew 90% last year, promising the giant a new channel of business.

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