UKNM: Fair Trading - Amazon, etc.

[Speechrad]

I am prompted by this to ask list members' opinions.

In a message dated 06/01/00 19:27:12 GMT Standard Time,

bentloyibm [dot] net

writes:


<< Going hand in hand with this is the significant drop in share price of

  AMAZON yesterday, when they announced that even though their sales had

  increased and their losses (which I believe are expected to be in the region

  of ($500m) for this financial) wouldn't increase - but they weren't

  decreasing. >>

Amazon have repeatedly said in interviews something to the effect that they 

are not trying to make a profit but to grab market share so that they are 

left standing when e-commerce takes off - or words to that effect. I'm sure I 

heard Mr Bezos say something similar on a BBC TV interview.

My understanding of UK law is that if, say, Dixons, Tesco or WH Smith, 

decided to trade at a loss until all the competition went away that the 

Office of Fair Trading would take a dim view of that sort of practise.  I'm 

sure that there are similar regulations in the USA (I'm told, for example, 

that it is actually illegal to give away food on the streets in the US ???)

Of course, I may have got this wrong, Amazon may be trying to make a profit 

but just aren't very good at it.

Any legal experts (or Amazon competitors) out there have an opinion on this?


Michael Trott

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