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What challenges lie ahead for Amazon?

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Last month, members of the U.S House of Representatives introduced a group of bills aiming to target tech giants like Amazon.

On any day, you may wake up to ask Alexa about today’s weather, shop for groceries at Whole Foods, watch a movie on Prime Video, browse on a site hosted by Amazon, or shop for any kind of product on Amazon.com. These days it seems complicated to avoid the fact that Amazon is in every corner of our lives. What started as an online book store has now become an ‘everything’ empire.

This kind of market dominance has become a target for legislators and regulators alike. Thus the U.S and Europe have started focusing on Amazon and some of its giant tech colleagues like Apple or Facebook. But breaking up large businesses in which many jobs and other enterprises depend is more complex than it seems. It may send rippling effects through many sectors of the economy, including small businesses.

This is the case for Amazon, mostly because of their third-party item business. Many small, independent, or medium manufacturers depend on the chain of supply and the logistics and audiences provided by Amazon.

But if a U.S regulatory crackdown happens, Amazon has specific plans to save its core retail and delivery system. And this is not exactly good news for those small sectors of the economy that depend on their third-party item business. So the company declared it would sacrifice that division and return to the old days in which Amazon sold all the merchandise listed in their platform.

Some hesitate to believe that the company would do that if regulatory changes are successful in Congress as it may hurt their bottom line. However, this proves the difficulty of breaking up big conglomerates such as Amazon, as legislators cannot target them by causing more significant damage to the economy.

As legislators try to drive down the power held by these big companies, the process is set to be a long one, facing significant challenges in the United States.

What’s in the future for Amazon? Do you believe it would sacrifice their third-party seller program? Let us know in the comments.

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