Re: UKNM: Fair Trading - Amazon, etc.

[Martin Phillips]

----- Original Message -----

From: <

Speechradaol [dot] com

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To: <

uk-netmarketingchinwag [dot] com

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Sent: 06 January 2000 21:47

Subject: UKNM: Fair Trading - Amazon, etc.



 > 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.

 > 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 no legal expert, but I seem to remember the OFT telling The Times

newspaper to increase its cover price, as it was using 'predatory

pricing' (the term used for buying market share). So I think you're

right that the OFT takes a dim view, but only if Amazon are selling

books below cost - with The Times the situation was that the paper

was being sold for less than it cost to produce (if I remember

correctly).


It's a minefield, but I think one of Amazon's competitors could

complain. I don't think they'd win, because the government also take

the view that we're in 'ripoff Britain', so prices should come down

(and so say all of us).


Martin Phillips

Danbury Mint

www.danburymint.co.uk



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