The United States plans to pass legislation to force Amazon to separate its business, and self-operated businesses may no longer compete with sellers!

The United States plans to pass legislation to force Amazon to separate its business, and self-operated businesses may no longer compete with sellers!

According to foreign media reports, the U.S. House of Representatives recently proposed five new bills directly targeting the largest technology companies. Each of them focuses on different aspects of large technology companies' alleged abuse of their market power, which is a new round of sanctions by the United States against their monopolistic behavior.

 

The bill targets large technology companies with a market value of $600 billion or more and more than 50 million monthly active users or 100,000 monthly active business users . Although the names of the companies are not mentioned, this undoubtedly limits several large companies including Amazon and Google.

 

One bill, the Ending Platform Monopolies Act, would require large platforms to undergo structural separation and unbundle their businesses, and would make it illegal for companies to use their platforms to sell or provide products or services, or to require services as a condition of access to the platforms.

 

If the bill is implemented, Amazon would have to split its business into two separate websites, one for the third-party market and the other for the first-party market; of course, there is also another option, which is to divest or shut down the sales of its own-brand products.

This means that Amazon will no longer be able to offer products from other companies, nor can it compete with platform sellers with its own brand products. It is reported that Amazon's own brand department has dozens of brands and 158,000 products.

 

Amazon is no longer allowed to sell its own brands. What are the pros and cons for third-party sellers? On the surface, this is certainly good news for third-party sellers. They don’t have to compete with Amazon’s own brand sellers and will get more orders.

 

But after a thorough investigation, third-party sellers can no longer take it lightly. For Amazon, once the new bill is introduced, its interests will definitely be damaged, but how can a giant like this be willing to be restricted? What measures will it take to deal with it? For example, Amazon can increase platform fees, insist that sellers use Amazon logistics, limit price changes on its platform, etc., to profit from its rapidly growing third-party market.

 

However, judging from the current situation, it may take some time for these bills to be officially introduced , because they must be based on the premise of consensus between the two parties in the United States, and experts say: "This is a tough struggle." And even if the bill is passed, these laws may take several years to implement.


US Act

Amazon

Seller

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