The Vertical Market Power of Online Platforms Case Study: The Vertical Market Power of Amazon

Abstract

This article focuses on the vertical market power of online platforms and the case study of Amazon. Firstly, this article analyses the problems of unfair competition, deep bundling of services, and consumer privacy that result from Amazon's platform being too powerful in terms of vertical market power. These problems lead to a loss of interest for third-party sellers and consumers and a significant increase in Amazon's revenue, likely creating a monopoly in this productive online platform segment. The second focuses on both quantitative and qualitative aspects of Amazon's vertical market power, broadly determining whether Amazon is a monopoly. It also concludes by examining how to address the problems caused by these vertical market forces. The government and competition regulators are the main focus, with strict controls on Amazon's behaviour in terms of pricing and acquisitions. Treat Amazon as a paradigm for the entire online platform.