Elizabeth Warren Says Amazon is “Like a Monster” Who Must Be Fed Every Minute |

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(CNN) – Senator Elizabeth Warren is stepping up efforts to dismantle Amazon, saying the $ 1.7 trillion company is just too powerful.

“Amazon has the power and is using it to destroy small businesses before they even get a foothold,” the Massachusetts Democrat told CNN in a telephone interview.

Warren argues that it’s not fair for Amazon to sell products, like shirts, pet food, and sneakers, and simultaneously control the dominant platform on which those products are sold.

“You can be the referee or a player on the pitch. But you can’t be both. That’s what Amazon does,” Warren said. “What’s the solution here? Destroy Amazon. “

Amazon, Facebook and Big Tech have come under fire from politicians on both sides of the aisle who are concerned about the vast amounts of power they have amassed.

For Facebook, the main concern of critics is that the social media giant hasn’t done enough to stop the spread of disinformation or protect user data.

Marc Benioff, CEO of Salesforce recently told CNN the deception was spreading like wildfire on Facebook is to blame for much of what plagues America today, from the climate crisis to Covid. Facebook insists it has made significant improvements to stop misinformation, including vaccine conspiracy theories.

Warren Says Amazon Uses Power To “Cheat”

Amazon critics argue that the company has unfairly taken advantage of mom-and-pop stores and other competitors.

“Once a monopoly starts to develop, it becomes a matter of course,” Warren said. “Amazon started out as the dominant book delivery service. And then it starts to transform into other products and becomes the dominant delivery service. Now it’s like a monster that needs to be fed every minute.”

Amazon declined to comment directly on Warren’s remarks.

However, an Amazon spokesperson pointed out a pair of blog posts from a year ago that postponed the effort to dismantle the company.

In, Amazon warns that “fringe notions about antitrust” “Kill independent retailers and punish consumers” by forcing small businesses out of online stores, raising prices and reducing consumer choice and convenience.

“All major organizations are getting the attention of regulators, and we welcome this review,” Amazon wrote in the post. “But large companies are not dominant by definition, and the presumption that success can only be the result of anti-competitive behavior is simply false.”

Today, Amazon has spread to everything from entertainment and groceries to prescription drugs. And it is a leading player in the burgeoning cloud services market.

“Amazon has the double whammy: economic and political power. Their economic power comes from dominating their platform, but they’re extending that dominance by using the platform to cheat,” Warren said. “They then use their political power to prevent the authorities from holding them accountable.”

Amazon pointed out that it represents less than 1% of the global $ 25 trillion retail market and less than 4% of the US retail trade. The company added that it isn’t even the largest US retailer (it would be Walmart, by far) and that it competes with “big, established companies” like Target, Costco, Kroger, Home Depot and Best. Buy.

“Inside information”

Warren referred to a Reuters investigation who used a wealth of internal Amazon documents to show how the company conducted a “systematic campaign of counterfeiting and manipulation of research results” to help its own product lines in India, one of its fastest growing markets.

The report found that Amazon’s private brands in India were using internal data to copy products sold by other companies and then offer them on the Amazon platform.

“These claims are incorrect and unfounded. Amazon does not give preferential treatment to any seller in its market,” Amazon said in response to the Reuters report.

Amazon has said it has a policy that “strictly prohibits the use or sharing of non-public and seller-specific data with sellers, including with private label sellers” and the company is investigating any reports of employees violating this policy. .

Amazon has pointed out that the way it displays product search results does not promote its own private label products.

Warren, unsurprisingly, doesn’t buy it.

“How was Amazon able to build a huge sartorial presence? The answer is they had inside information about what Indians were buying,” Warren said. “Most people think of antitrust as just the area a company is in. But what Amazon has shown is how a company can dominate in one area and then leverage it to dominate multiple areas. “

Of course, many see Amazon as the ultimate success story.

Founded by Jeff Bezos in a garage in 1994, Amazon is now worth more than almost any other company on the planet.

Amazon said he had created nearly a million jobs in the United States alone during the last decade. And the company made a fortune for its shareholders.

Asked to respond to criticism that she doesn’t respect success, Warren laughed.

“I love the markets,” Warren said. “But for markets to work, you need competition rules. And Amazon doesn’t respect those rules.”

The-CNN-Wire

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