US Treasury Secretary criticizes Amazon
US Treasury Secretary Steven Mnuchin said that Amazon “destroyed the retail industry across the United States”.
In his opinion the attorney general should investigate the company alongside other tech giants in the sweeping antitrust review that the Justice Department announced on Tuesday, reports TheVerge.
Mnuchin said that “although there’s certain benefits to Amazon’s success, the company has really hurt small businesses in the process”.
The Justice Department announced that it would begin a review into whether major online platforms have “reduced competition, stifled innovation, or otherwise harmed consumers.” While Amazon was not mentioned by name, the assumption is that the DOJ will be looking at it alongside other tech giants, like Facebook and Google, that also vastly dominate their fields.
Amazon responded to Mnuchin’s remarks with a comment saying that its platform helps small businesses and that physical stores still dominate retail sales. “Small and medium-sized businesses are thriving with Amazon,” a spokesperson said. They said that Amazon represents “less than 4 percent of US retail,” and that 90 percent of retail sales “still occur in brick-and-mortar stores according to the US Census Bureau.”
More Amazon news
Amazon Eases IPI Metric for FBA Sellers
The majority of FBA sellers will get a higher IPI score Amazon is making it slightly easier for sellers who use its FBA fulfillment service by easing standards for the Inventory Performance Index (IPI) Amazon announced: “As of January 20, 2020, your...
Amazon is launching a new marketplace in the Netherlands
Amazon opens Netherlands marketplace to sellers Amazon has opened its Netherlands marketplace for sellers to register, as well as announcing plans to expand it later this year. Sellers are invited to register on the amazon.nl portal for a fee of €39 per...
Why Did Amazon Block Sellers From Using FedEx?
Here's Why Amazon Won't Let Third-Party Sellers Ship with FedEx Earlier this week, Amazon announced that sellers on its site will not be permitted to use FedEx for deliveries to Amazon Prime customers. The Wall Street Journal reported a “decline in...