[HN Gopher] US antitrust case against Amazon to move forward
       ___________________________________________________________________
        
       US antitrust case against Amazon to move forward
        
       Author : christhecaribou
       Score  : 251 points
       Date   : 2024-10-07 17:40 UTC (5 hours ago)
        
 (HTM) web link (www.reuters.com)
 (TXT) w3m dump (www.reuters.com)
        
       | kelseyfrog wrote:
       | Why does this keep happening?
        
         | christophilus wrote:
         | Why does what keep happening? Antitrust cases or companies
         | becoming monopolies?
        
         | peppers-ghost wrote:
         | Monopolies are a feature of unregulated capitalism. Every
         | company wants to dominate the sector they're in, competition
         | invariably leads to monopolies.
        
       | psunavy03 wrote:
       | Ruling at the below link, because apparently every US news
       | reporter is allergic to actually providing source docs in court
       | cases . . .
       | 
       | https://storage.courtlistener.com/recap/gov.uscourts.wawd.32...
        
         | Workaccount2 wrote:
         | It's in violation of the sacred law of the attention economy:
         | 
         | Never link outside your garden.
        
           | braiamp wrote:
           | For some weird reason, outlinks are to be avoided, because
           | it's seen as "leaving your site". In a store front, I can see
           | that making sense. In a site to provide information... not so
           | much.
        
             | ethbr1 wrote:
             | News sites aren't just providing information: they're
             | trading reporting for ad impressions.
        
               | tmtvl wrote:
               | Serious question: are paywalled news articles better at
               | outlinking and do they have no ads?
        
               | nemomarx wrote:
               | in my experience of i pay a sub it removes ads from the
               | site at least, although not sponsored content
        
               | 2OEH8eoCRo0 wrote:
               | NYT will often outlink or if they're talking about a
               | report, will provide a PDF of the report.
               | 
               | Example:
               | https://www.nytimes.com/2024/10/02/us/politics/trump-
               | jan-6-c...
        
               | mrandish wrote:
               | No, not in my experience. They _usually_ have less
               | external ads but a lot of other cruft is still there.
               | 
               | Enshittification
               | (https://en.wikipedia.org/wiki/Enshittification) is
               | getting so bad, I'd be willing to pay for sites that
               | actually work. So far, paywall offers are just to remove
               | external ads and that's only part of what I want. The
               | rest of what I want is for the fucking site to actually
               | work. For example, both Google and Amazon search have
               | been seriously degraded and de-featured in recent years
               | and it's been done very intentionally and systematically
               | to optimize for their ad or sales revenue.
               | 
               | I suspect this degradation has crept deeper into their
               | stacks than just at the top layer where it could be
               | easily turned off with a flag and sold as a paywall
               | upgrade.
        
               | nnf wrote:
               | _The Atlantic_ seems to have no problem linking to
               | multiple outside sources in seemingly every article I
               | read.
        
               | JumpCrisscross wrote:
               | The _Financial Times_ is also good about this.
        
             | kredd wrote:
             | If You leave the website, your eyes won't catch a headline
             | that's on the side that you might also click, spending more
             | time on your website. Which translates to more money.
        
             | throwaway48476 wrote:
             | As a culture we don't value primary sources.
        
         | cynicalpeace wrote:
         | I find this to be the case with most primary sources, not just
         | for court cases. A couple days ago, an American WWII bomb
         | exploded at a Japanese airport and the article linked on HN
         | didn't even show or link the video.
         | 
         | Legacy media really sucks.
        
           | daemoens wrote:
           | Why single out legacy media for this specifically? This isn't
           | something newer media is better at.
        
             | cynicalpeace wrote:
             | Many popular podcasts would show the video, or pull up
             | fact-checking in real time. If that's what you mean by
             | "newer media" I would say it's 10x better.
             | 
             | Reuters is legacy media, hence why I mentioned legacy
             | media.
        
               | hughesjj wrote:
               | Linking the publishing source is needed too. So many
               | videos get reposted and mislabeled.
               | 
               | Like basically any rocket attack I assume happened in
               | like 2006 and between completely different belligerents
               | than whatever a post claims at this point
        
               | thaumasiotes wrote:
               | > Many popular podcasts would show the video
               | 
               | A podcast doesn't include any video data. How could it
               | show a video?
        
               | cynicalpeace wrote:
               | YouTube is the biggest podcast platform in the world
        
               | bombcar wrote:
               | "Podcast" is now a generic term that covers any "talking
               | head"-type Internet show, most of which are on YouTube.
        
               | shermantanktop wrote:
               | Well nobody asked me before changing the meaning! And by
               | the way, a "selfie" can only have one person in it, and a
               | "video" is something on MTV. Don't get me started on
               | "hack."
        
               | jpc0 wrote:
               | There's this modern trend to call a bunch of people
               | staring around a table a podcast. Whether they have
               | cameras or not...
               | 
               | It annoys me too but I'm young enough to tolerate the
               | kids on my lawn...
        
       | scohesc wrote:
       | I hope they include Amazon's practice of taking popular products
       | on their storefront, making generic "Amazon Basics" versions, and
       | selling them to undercut the popular options. Simultaneously
       | owning a marketplace, approving who can and can't sell products
       | on it, and then putting your own products on it to undercut other
       | sellers is so scummy and muck rake-y.
       | 
       | I hope they also include Amazon allowing thousands of Chinese
       | retailers to stock Amazon's warehouses with counterfeit, faulty
       | products, and potentially dangerous out-of-spec parts - with no
       | way to meaningfully report or bring the offending product to
       | Amazon's attention.
        
         | macinjosh wrote:
         | Not every one can afford the name brand.
         | 
         | - Sincerely a kid raised on everything store brand.
        
           | saltymug76 wrote:
           | I dont think anyone's arguing against generic alternatives of
           | name brand items. The issue here is Amazon using up-and-
           | coming and popular products as fodder for them to generic-ize
           | and push to the top of results, essentially knee capping the
           | original seller.
        
             | megaman821 wrote:
             | Those original sellers mainly just look like drop-shippers
             | to me. So Amazon just going straight to the source and
             | selling at lower margin is better for me as a buyer.
        
             | wvenable wrote:
             | Is there a business with a "house brand" that doesn't do
             | this?
        
             | tomschlick wrote:
             | Does Walmart/CostCo/BestBuy/Kroger/etc not do this exact
             | thing?
        
               | johnnyanmac wrote:
               | I think the algorithms make the difference here. You
               | can't really make a cereal box stand out on a physical
               | shelf in any unique way (or you can, but it'll be a cost
               | expense. Ruining the point of undercutting). IME with
               | online storefronts for traditional brick and mortar their
               | own brands never seem to come on top.
               | 
               | Meanwhle I will almost always get an AmazonBasics if it
               | exists as a first result.
        
             | lovethevoid wrote:
             | All retailers do that. It's called private labels. None of
             | the products are made by the retailer either. As
             | unfortunate to those who might genuinely believe Trader
             | Joes products are unique to them, or that Great Value was
             | Walmart using its massive distribution systems to quickly
             | scale core products like Milk out. It's all private
             | labelling.
        
             | tbrownaw wrote:
             | Yes, how dare they use their scale to make more cost-
             | effective versions of popular things.
        
               | johnnyanmac wrote:
               | how dare they use their algorithms to make sure all their
               | cost effective versions will show up first.
               | 
               | That's probably the more pressing issue.
        
         | the_gorilla wrote:
         | I don't think it's part of an antitrust case, but I am tired of
         | seeing every item being sold from 200 chinese companies with
         | randomly generated names and fake/bought reviews. Walmart has
         | started to do something similar with their online store. I'll
         | use their words.
         | 
         | > It's easy to sell online with Walmart.com. Partner with the
         | largest multi-channel retailer and put your products in front
         | of millions of Walmart shoppers.
         | 
         | Americans are used to American storefronts going through
         | American regulations, but now you're essentially being
         | dropshipped hazardous unregulated products. I generally try to
         | buy from companies directly but this hasn't stopped my family
         | from buying chinesium children toys for me that go straight
         | into the trash.
        
           | 2OEH8eoCRo0 wrote:
           | > you're essentially being dropshipped hazardous unregulated
           | products.
           | 
           | How did we end up here? Like why the hell can I buy things on
           | Amazon that can't legally be sold on shelves in the US? Why
           | aren't retailers suing?
        
             | esskay wrote:
             | > Why aren't retailers suing?
             | 
             | Because Amazons wiped a lot of them out, and the ones that
             | remain are either doing the same thing, or stand zero
             | chance of comign out of it anything less than bankrupt.
             | 
             | Amazon for all its convenience has decimated likely close
             | to if not more than a million businesses at this point
             | across the world.
        
             | lovethevoid wrote:
             | The CPSC has sued and won
             | https://www.cpsc.gov/Newsroom/News-Releases/2024/CPSC-
             | Finds-...
             | 
             | Amazon used the excuse it wasn't acting as a distributor
             | and thus shouldn't be held responsible for protecting the
             | public from these products
        
         | psunavy03 wrote:
         | You mean you don't like having the choice between ZOSLRD-
         | branded stuff and TUMACO-branded stuff, both of which have
         | descriptions that look like someone put Mandarin Chinese
         | through an LLM, because that's probably what they did?
        
           | shitlord wrote:
           | Why is it so common for Chinese sellers on Amazon to have
           | uppercase company names?
        
             | kmeisthax wrote:
             | Selling on Amazon requires a registered trademark. If
             | you're a random factory in Shenzhen you don't care about
             | branding, you just want to be able to sell your stuff on
             | Amazon, so you just put together random letters in the hope
             | that your registration won't conflict with anything else.
             | You don't want to have to deal with back-and-forth with
             | USPTO, you don't care about having a meaningful, memorable,
             | or interesting name, you _just_ want an Amazon listing.
             | 
             | Coincidentally the majority of USPTO trademark submissions
             | are literally just random strings of letters now for this
             | reason.
        
               | shitlord wrote:
               | That explains the random names, but what's with the upper
               | case lettering?
        
               | johnnyanmac wrote:
               | if I had to take a blind guess: Chinese doesn't have a
               | concept of casesensitivity. It's a logographic language
               | so casesensitivity is almost irrelevant.
        
         | richwater wrote:
         | > I hope they include Amazon's practice of taking popular
         | products on their storefront, making generic "Amazon Basics"
         | versions, and selling them to undercut the popular options.
         | 
         | I guess you hate every grocery store ever then
        
           | adventured wrote:
           | And competition. One of the ways companies like Walmart hold
           | their popular brand name companies in check on pricing power
           | is through their store brands.
           | 
           | Why should I feel bad about Kraft being under permanent
           | pressure by Walmart's Great Value brand?
           | 
           | More competition is needed, not less. Along with more
           | transparency. Banning Amazon from competing would be a
           | mistake. They need a more level playing field, not fewer
           | players.
        
       | LorenDB wrote:
       | I don't care who wins the election next month, Lina Khan needs to
       | be kept as FTC chair. The FTC has been on a roll the past while.
        
         | jjtheblunt wrote:
         | What has she done that didn't fail or get shot down as
         | political overreach?
         | 
         | (not being sarcastic...i mean that i may have missed something
         | inadvertently)
        
           | Multicomp wrote:
           | Not GP. I would say that her effectiveness is both in Fire
           | and Motion [1], while one wants more Fire, before the status
           | quo was not only no fire, but also no motion. Even the motion
           | is a good starting point that businesses are having
           | management adapt their strategies and plans to account for
           | the motion, just out self-interested risk mitigation in case
           | there is more fire than there currently is today, and that
           | fire gets trained on them.
           | 
           | [1] https://www.joelonsoftware.com/2002/01/06/fire-and-
           | motion/
        
             | BoiledCabbage wrote:
             | A good analogy, but I think you swapped the meaning of fire
             | and motion in your usage of it.
             | 
             | In this case, her cases even if lost would be the
             | equivalent of cover fire. Businesses need to re-act to the
             | cover fire and cannot advance (perform their own motion)
             | while she is firing.
             | 
             | The second part is that you would hope/expect her to be
             | able to gain territory in the near future via the "motion"
             | part of the strategy.
             | 
             | So I agree in your framing, just from my perspective you
             | flipped the terminology.
        
             | RcouF1uZ4gsC wrote:
             | That seems really bad for the government to be doing this.
             | If she is losing, then using the resources of the
             | government to harass businesses that are acting lawfully
             | seems like fascism.
        
           | givemeethekeys wrote:
           | I suppose the question is - despite her failures, do we agree
           | with the policy that she / the Biden administration are
           | pushing?
           | 
           | If so, then if she isn't the right person for the job, is
           | there someone who will be more successful?
        
           | hughesjj wrote:
           | > didn't fail or get shot down as political overreach?
           | 
           | Progress requires testing the system and seeing where the
           | failure points _are_. It 's significantly better than the
           | relative nothing we've gotten from past admins.
           | 
           | Also with the current judicial and congressional makeup it's
           | a wonder anything gets done.
        
             | jjtheblunt wrote:
             | but things that do get done were definitely critically
             | reviewed, so that's something.
        
           | enragedcacti wrote:
           | The FTC has succeeded at a lot of things that just aren't
           | very interesting to report on. I'd recommend reading through
           | FTC press releases. They generally release a statement
           | whenever a major action is started and resolved. By my count
           | in the past year or so the FTC was involved in at least 12
           | successful anti-monopoly actions (I counted modified mergers,
           | killed mergers, and divestments).
           | 
           | The most consequential merger win was probably the NVIDIA/ARM
           | merger that died under FTC litigation.
           | 
           | https://www.ftc.gov/news-events/news/press-releases
           | 
           | https://www.ftc.gov/news-events/news/press-
           | releases/2022/02/...
        
             | jjtheblunt wrote:
             | Thanks...that's the insight i was hoping for, great links.
             | much appreciated.
        
           | toomuchtodo wrote:
           | https://www.thebignewsletter.com/p/never-seen-anything-
           | like-...
        
         | megaman821 wrote:
         | I don't know if I accept Khan's framing of, even though I
         | haven't won any cases I have scared off potential mergers and
         | that is a win. I think the US already leans too heavily on
         | tying everything up in courts forever.
        
           | hn_throwaway_99 wrote:
           | Was the successful Google antitrust case not brought by the
           | feds?
        
             | megaman821 wrote:
             | That was the DOJ not the FTC.
        
           | BadHumans wrote:
           | Don't fall for the Silicon Valley propaganda that things are
           | on the downswing because the FTC is not allowing mergers or
           | acquisitions. Plenty of both of those have happened this
           | year. DirectTV is in the process of acquiring Dish Network
           | and SlingTV which is one of the largest acquisitions of the
           | year and should alone perish the thought that mergers aren't
           | happening.
        
             | dylan604 wrote:
             | If only the FTC could claim credit for the disappearance of
             | free money
        
             | megaman821 wrote:
             | The claim that there are less mergers happening is from
             | Khan not Silcon Valley.
             | 
             | "Sometimes, you know, the companies decide that they're
             | going to abandon the merger," Khan said. Stahl asked if
             | abandoning a merger amid the FTC's scrutiny was a win, to
             | which Khan said, "That's right." https://legal-
             | mag.com/ftcs-lina-khan-defends-merger-and-acqu...
        
               | johnnyanmac wrote:
               | It's a mix of both. Some mergers fall through under
               | regulation fear. Others fall through because aquisitions
               | are expensive and it'd take years to make up for the cost
               | (like the activision/blizzard one that was announced when
               | money was cheap and went through when money became
               | expensive).
        
           | mrandish wrote:
           | Yes, Khan has been a disaster for the FTC. Grossly
           | overreaching, media grandstanding and then quickly losing in
           | court in not-even-close rulings is not some kind of win.
        
           | mrkurt wrote:
           | I'd piss off a lot of investors I know by saying this -
           | nerfing the Adobe and Figma acquisition seems excellent for
           | consumer good.
           | 
           | 3 years ago that would have just been rubber stamped.
           | 
           | Their work on non-tech stuff has probably been even more
           | effective, too.
        
           | johnnyanmac wrote:
           | >I think the US already leans too heavily on tying everything
           | up in courts forever.
           | 
           | yes, because companies have decided to consider courts as a
           | cost to do business instead of a regulator they must not piss
           | off at any cost. the courts in that capacity will simply be
           | abused, especially as these fast moving tech companies can
           | make billions beofore a case shuts it all down.
           | 
           | Definitely needs to be some reform to how punishment works,
           | especially retroactive costs.
        
         | carabiner wrote:
         | Wrath of Khan and I'm here for it.
        
         | hornban wrote:
         | I happened to come across her on 60 Minutes a couple of weeks
         | ago, and that interview seemed awkward and sound-bitey to me.
         | Thinking that she just might not be great at short-form
         | segments I dug a little deeper and found an awesome long-form
         | interview that she did with the Council on Foreign Relations. I
         | highly recommend this to get a feel for what she is actually
         | like as a policy person. She really impressed me.
         | 
         | https://m.youtube.com/watch?v=L_QaZk5iJOA
        
           | cactusplant7374 wrote:
           | Prof G also interviewed her recently. It was a good one.
        
           | BoiledCabbage wrote:
           | Nice link, that was an interesting watch.
        
         | JumpCrisscross wrote:
         | Too early to call. At least initially, her FTC was incompetent
         | to the point that M&A lawyers were urging companies to attempt
         | mergers because shit that wouldn't usually get through would
         | get bungled in court. She was aggressive but incompetent.
         | 
         | She appears to be improving. But the FTC chair isn't an
         | internship.
        
           | blackeyeblitzar wrote:
           | I am happy for her to be aggressive and would forgive
           | mistakes in court simply due to the value brought to society
           | by her prominently going after these large anti-competitive
           | companies. And yes she might fail to address that as well,
           | but I wouldn't ascribe that failure to her competency. The
           | reality is that no one in this seat has even been trying.
           | They've been asleep at the wheel as the economy gets
           | increasingly captured by megacorps that don't really face
           | competition. And if she fails to rein them in, it'll be
           | because the existing law (antitrust law) is inadequate, more
           | than anything else.
           | 
           | I think the attention she's bringing to the issue will cause
           | many people to ask why antitrust enforcement has to be so
           | hard. Any company with more than $100B in revenue is a quasi-
           | government, and damages fair competition merely through their
           | existence. Instead of making enforcement rely on years-long
           | court cases, we need more immediate ways to break up or
           | regulate these companies, and what we have today is not
           | enough. If her attempts make more people realize the current
           | laws aren't enough, that might be its own form of success.
        
       | adam_arthur wrote:
       | Competition is the core tenant that makes capitalism beneficial
       | to broader society.
       | 
       | Consolidation over the past few decades has limited the capacity
       | for firms to compete in many sectors.
       | 
       | So I appreciate the sentiment of what the FTC is trying to do,
       | but they really come across as amateurs bringing far too many
       | lawsuits and often with weak legal reasoning/argumentation.
       | 
       | In many of the cases they've brought there exists alternative,
       | yet stronger arguments that could have been made.
       | 
       | I'd support congress legislating towards more competition (e.g.
       | forcing open standards for things like APIs/chat clients/smart
       | watches etc), or a more active FTC.
       | 
       | But the current approach is far too disorganized and weak.
        
         | johnnyanmac wrote:
         | I mean, I'm not a lawyer so I won't really judge what's a good
         | or bad argument. My impression is that forcing open standards
         | is a much harder argument than an antitrust one. Open standards
         | can come at a later step.
         | 
         | And if you haven't kept up this year, Chevron being overturned
         | is showing that the SCOTUS is more than happy to reduce FTC
         | interference.
        
       | taeric wrote:
       | Anyone have an easy summary of what all was dismissed? This story
       | is surprisingly light on details. (Did I just miss them?)
        
         | BadHumans wrote:
         | From what I have read, the pieces that were dismissed are still
         | sealed so we don't know yet.
        
           | taeric wrote:
           | The ruling is linked in another thread. The last two pages
           | outline what all is dismissed. My naive read is that a lot of
           | the claims were dismissed already. I have no idea if that is
           | normal or not. I also assume nobody really expected the
           | entire case to get dismissed?
           | 
           | I am interested in reading an analysis of this.
        
         | enragedcacti wrote:
         | All of the federal counts move forward, some of the counts
         | relating to specific states who joined the lawsuit are
         | dismissed.
         | 
         | > Last week, before the order was unsealed, some of the initial
         | coverage called it a "partial victory" for Amazon, but as it
         | turns out, the portion of the ruling in which the company was
         | victorious was relatively slim.
         | 
         | > The areas where the judge granted Amazon's motion to dismiss
         | were related to specific aspects of state claims, including
         | elements of allegations brought by Pennsylvania, New Jersey,
         | Oklahoma, and Maryland. Eighteen states and one territory,
         | Puerto Rico, joined the FTC in the lawsuit against Amazon.
         | 
         | https://www.geekwire.com/2024/unsealed-order-in-amazon-antit...
        
       | akavi wrote:
       | Reminder that a mere 15 years ago, Walmart was the unfair
       | monopolist whose market position rendered competition infeasible.
       | 
       | Also unclear to me why "ecommerce" is a market unto itself that
       | we should be concerned with level of concentration in, as opposed
       | to simply a slice of the broader "retail" market (which is much
       | less concentrated)
        
         | andrewia wrote:
         | Yes, but we don't know when the next technology shift will
         | happen. Amazon might be able to abuse their position for
         | decades if a disruption doesn't come.
         | 
         | Aa for E-commerce, it can have a larger inventory than physical
         | retail. You're not going to find many solar charge controllers
         | or mechanical keyboard parts at Walmart, but Amazon will have
         | tons of options deliverable within 48 hours. Few sites can have
         | comparable shipping cost/speed and you have to research each
         | one, whereas Amazon enjoys the position of being the default.
         | 
         | A decade ago, I helped a small Amazon seller with his
         | inventory, and it was eye opening to see all the fees and risks
         | compared to eBay. But he couldn't sell on eBay without losing a
         | massive portion of his customer base, despite their better
         | shopping/buying UX in my experience.
        
         | LordKeren wrote:
         | The criticisms of Walmart 15 years ago are still pretty valid
         | today, so I'm not sure this whataboutism really resonates with
         | people.
         | 
         | It seems completely reasonable to split brick and mortar sales
         | from web-based, given that the business model is pretty
         | significantly different.
         | 
         | And AWS
        
         | eikenberry wrote:
         | This is why pinning anti-trust to monopolies is a mistake.
         | Anti-trust is about competition and creating more of it... and
         | if it's about increasing competition then they both need
         | attention. They are both very big and abuse their dominance in
         | ways that stifles competition. That is, in the last 15 years we
         | added another company that needs anti-trust attention, nothing
         | was replaced.
        
         | enragedcacti wrote:
         | The original complaint has a number of pages starting at 39 (43
         | in pdf) dedicated to defining the relevant markets and why they
         | feel brick and mortar isn't part of the relevant market.
         | 
         | https://www.ftc.gov/system/files/ftc_gov/pdf/1910134amazonec...
        
         | AntiEgo wrote:
         | Amazon's "favoured nation" policy stipulates that vendors can't
         | sell an item anywhere else for a lower price. This policy seems
         | designed by them to put a moat between them and retail.
        
       | resters wrote:
       | Amazon currently does not honor its prime shipping agreement with
       | all domestic customers and has no customer service path to get
       | the issue resolved. In some places USPS is unreliable and Amazon
       | insists on using it repeatedly, violating its own promise to
       | customers. This suggests to me that Amazon faces no competitive
       | pressure to deliver good customer service.
        
         | ceejayoz wrote:
         | Didn't they drop the two-day shipping promise a while back?
        
           | ClassyJacket wrote:
           | It's only two day in America? It's next day in Australia. And
           | we haven't even had Amazon for long...
        
             | dymk wrote:
             | It depends where you live and what's in the closest
             | warehouse. Many things are overnight delivered in the
             | morning for me now, as I have a fulfillment center close
             | by.
        
             | packetlost wrote:
             | > we haven't even had Amazon for long
             | 
             | Yeah, that's probably _why_. They get people hooked with
             | actually good service and then drop quality to save money
             | once they 've captured the market.
        
             | NavinF wrote:
             | It's usually same-day where I live in the bay area. Same
             | for Walmart, Costco, etc
        
             | ceejayoz wrote:
             | In the US it's next day sometimes, a week other times, and
             | 30 days on the slow boat from China.
             | 
             | I suspect it isn't next-day in, say, Broome. Last time I
             | was in Hobart even it definitely wasn't next or two-day
             | shipping, lol.
        
         | hyggetrold wrote:
         | _> In some places USPS is unreliable_
         | 
         | I can live with USPS but what made me actually cancel my Prime
         | account was their use of On-Trac shipping in California. They
         | literally missed every single time and had to come back the
         | next day.
        
       | slibhb wrote:
       | More and more, antitrust is a means for people who dislike big,
       | successful companies for no particular reason to attack them. On
       | some level, the government is just throwing its weight around.
       | The message is "don't forget who's really in charge."
       | 
       | Consider all the "Lina Khan fans" you see on HN and elsewhere.
       | They rarely articulate why the government should be suing these
       | companies, which laws that company broke, or if those laws make
       | sense. They just don't like big companies and want them taken
       | down a peg.
       | 
       | The Google suit was particularly egregious. There was no
       | alternative to Google search because no one had built a better
       | product for reasons that have nothing to do with anticompetitive
       | behavior. And the real irony here is that Google appears to be
       | behind on LLMs, which have finally given us an alternative to
       | typing things into Google. So the government picked the exact
       | moment when Google's search market share is seriously threatened
       | to sue!
        
         | xracy wrote:
         | The entire conceit of capitalism is that competition is good,
         | and that competition forces companies to better address their
         | customers needs. If they're not doing this, then someone can
         | come in and undercut them.
         | 
         | But what happens in the scenario where the person comes in,
         | undercuts them, and then sells to the bigger company? How does
         | this force the larger company to change? This is like antitrust
         | 101.
         | 
         | I don't understand people who claim to be proponents of
         | capitalism and are opposed to antitrust. If you want the free
         | market to determine _anything_ with fewer regulations, then we
         | need antitrust. Otherwise we need a _lot_ more regulations.
         | Which one would you prefer?
         | 
         | I have a feeling you wouldn't recognize anticompetitive
         | behavior despite it hitting you in the face for the past 10
         | years.
        
         | llamaimperative wrote:
         | Here you go:
         | 
         | * I'm a big fan of Chairwoman Khan.
         | 
         | * The government should be suing many of the companies FTC is
         | going after because their behavior yields bad outcomes for
         | consumers, such as worse health outcomes after a private equity
         | group captures an entire geography then drives up prices while
         | reducing quality.
         | 
         | * They tend to have broken laws around creating and abusing
         | monopoly positions, usually with various illegal details like
         | kickback arrangements and self-dealing.
         | 
         | * These laws make sense.
         | 
         | * I don't mind big companies and many of the companies FTC goes
         | after are not particularly big.
         | 
         | * Companies that utilize edge cases in market dynamics to
         | produce bad outcomes for consumers should be taken down a peg.
        
         | kmeisthax wrote:
         | On the charge of just wanting to break up big companies because
         | they're big, I plead not guilty on the virtue of this not being
         | a crime. The whole point of breaking up large companies is
         | because their size renders them unaccountable quazi-
         | governments. To properly regulate them requires making the
         | government _even bigger_ with ever-more-complicated regulatory
         | apparatus, compliance departments, administrative rulemaking,
         | and  "special understandings" (read: giving up) for the largest
         | players.
         | 
         | I'll put it to you another way: if you want smaller government,
         | you need smaller corporations, too.
         | 
         | > There was no alternative to Google search because no one had
         | built a better product for reasons that have nothing to do with
         | anticompetitive behavior.
         | 
         | I would first argue that Google's unparalleled superiority in
         | search is overblown. For one, there's ads in it. _As Google 's
         | founders themselves stated_, ads are a perverse incentive to
         | ruin the search experience in favor of advertisers and I can
         | point to several examples[0] in which this happened.
         | 
         | There are paid search engines that do not have advertising
         | (e.g. Kagi) but they themselves have complained about the
         | struggle that is competing with Google. For example, on iOS,
         | there's only five default search engine options, there's no way
         | to add a different search engine as default, and Google pays
         | $$$ to Apple to be set to the default and for that search
         | engine option to be buried in Settings. I don't see how that
         | _isn 't_ anticompetitive.
         | 
         | On a technical level, Google has a supracompetitive advantage,
         | too. A lot of websites have restrictive policies that forbid
         | scraping except for Google and Bing. This means only those
         | search engines can actually return results for those sites.
         | 
         | [0] Product ads in web search, every programming search query
         | giving you four or five ads before the actual StackOverflow
         | answer you're interested in, image search becoming a glorified
         | product search with actual functionality being removed, Gemini
        
         | rozap wrote:
         | Point taken about the level of discourse on the internet and
         | the mainstream media, no argument there. It is painful, but
         | just because the _discourse_ around the topic is smooth brained
         | doesn 't mean that the position is wrong. This is something
         | that I struggle with. Sometimes the discourse is so
         | unimaginably stupid that it pushes you to default to the other
         | side's point of view, but that doesn't actually mean you got to
         | that point of view through any reasoning, you got there from
         | emotion.
         | 
         | There are the standard points around consumer protection.
         | Ticketmaster, Adobe, Amazon, really do engage in anti
         | competitive practices and then burn the consumer once they've
         | consolidated power. People feel that, but to your point, can't
         | articulate all the moving pieces, and that's fine, use the mute
         | button. God help us if Kroger and Safeway get their way and
         | merge.
         | 
         | To your point about "don't forget who's really in charge." - it
         | might feel like there's no upside here, but in reality you do
         | end up with companies that have more power than the government,
         | and that's a dangerous road to go down in a democracy, since
         | there's no real way to hold them accountable. Obviously the
         | government is deeply flawed in a million different ways, but
         | ultimately there are elected officials, which cannot be said of
         | private companies.
         | 
         | Also Lina Khan talks a lot about resiliency. Too much
         | efficiency can make things worse [1]. With mass consolidation,
         | black swan events lead to and outsized impact compared to what
         | they would in an economy where there aren't monopolies
         | everywhere. Climate change, pandemics, instability in Europe
         | and the middle east, etc mean that it's worth trading extreme
         | efficiency for robustness.
         | 
         | [1] https://sohl-dickstein.github.io/2022/11/06/strong-
         | Goodhart....
        
         | johnnyanmac wrote:
         | >hey rarely articulate why the government should be suing these
         | companies, which laws that company broke, or if those laws make
         | sense.
         | 
         | Because it's not productive and against HN guidelines to say
         | "read the article".
         | 
         | >Last year, the FTC alleged Amazon.com, which has 1 billion
         | items in its online superstore, was using an algorithm that
         | pushed up prices U.S. households paid by more than $1 billion.
         | Amazon has said in court papers it stopped using the program in
         | 2019.
         | 
         | Price fixing is generally an illegal tactic. I'm not a lawyer
         | but there's plenty of legal dictionaries that laymen can
         | understand on the whats, why's, and hows. So yes, the goverment
         | should sue if a law is suspected of being broken.
         | 
         | >The Google suit was particularly egregious. There was no
         | alternative to Google search because no one had built a better
         | product for reasons that have nothing to do with
         | anticompetitive behavior.
         | 
         | did you ignore the point where google was spending 250m a year
         | to Apple to be the default search engine on IOS?
         | 
         | Please actually read the topics before complaining that there
         | is no rationale behind it. You're doing the very thing you
         | accuse others of doing. YOu're not providing an argument you're
         | saying arguments don't exist and inserting a strawman.
         | 
         | >the government picked the exact moment when Google's search
         | market share is seriously threatened to sue!
         | 
         | Googles been under scrutiny since pre-pandemic. There is no
         | such thing as "good timing" for a lawsuit because they take
         | years to bring to court, let alone to resolve.
        
       | Spivak wrote:
       | > Amazon's practice of coercing sellers who want their products
       | to be Prime eligible into using Fulfillment by Amazon, which
       | makes it more difficult and more expensive for rivals to offer
       | increased product selection.
       | 
       | How would this even work? It's on Amazon to deliver your stuff in
       | 2 days but they also have to allow 3rd party shipping they have
       | no control over? Are they allowed to require such a seller to
       | fulfill the order by a specific date?
       | 
       | Because to me a lowly customer Prime === Item Shipped by Amazon.
       | That's the whole value.
        
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