Description: Canada’s competition bureau is taking on Amazon, the giant of the retail world that has only grown stronger during the Covid-19 period. The basic problem, as has been observed by US Senator Elizabeth Warren, is that Amazon owns the marketplace, and the company sells its wares in that same market. This conflict of interest causes concerns around the pricing of its goods versus other sellers in the market, and, about how Amazon may be sharing customer information across its various structures, such as Alexa, Whole Foods, and the regular Amazon online store. Former Amazon V.P. Jeff Bray has said “Amazon’s strategy of growth over profits doesn’t make any sense at all, unless your end goal is to become monopolistic in size to point in which you regain pricing power.”
Date: October 11, 2020
1) Have you been using Amazon’s services more in recent months?
2) What did you find was the most interesting part of the article for you?
3) Did you ever think about the title of your accounting text, Wiley’s Financial Accounting: Tools for Business Decision-Making? What tools from this text could accountants apply in assisting the Competition Bureau in this examination of Amazon?