Is Amazon Creating a Cultural Monopoly? - The New Yorker - 0 views
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“We are not experts in antitrust law, and this letter is not a legal brief. But we are authors with a deep, collective experience in this field, and we agree with the authorities in economics and law who have asserted that Amazon’s dominant position makes it a monopoly as a seller of books and a monopsony as a buyer of books.” (A monopoly is a company that has extraordinary control over supply as a seller of goods to consumers; a monopsony has extraordinary control over suppliers as a buyer of their goods.)
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a highly unorthodox argument: that, even though Amazon’s activities tend to reduce book prices, which is considered good for consumers, they ultimately hurt consumers
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U.S. courts evaluate antitrust issues very differently, nowadays, than they did a hundred years ago, just after antitrust laws were established to keep big corporations from abusing their power. Back then, judges tended to be largely concerned with protecting suppliers from being squeezed by retailers, which meant that, if a corporation exercised monopoly power to push prices down, hurting suppliers, the company could easily lose an antitrust case. But by the nineteen-eighties, the judiciary’s focus had shifted to protecting consumers, leading courts to become more prone to ruling in favor of the corporation, on the grounds that lower prices are good for consumers.
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specific argument—that Amazon’s actions are bad for consumers because they make our world less intellectually active and diverse—is unorthodox in its resort to cultural and artistic grounds. But it can be read as the inverse of a case like Leegin v. PSKS: that lower prices for worse products could be bad for consumers—and perhaps constitute an antitrust violation.
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if higher prices corresponded with better products, that could be good for consumers—and not necessarily an antitrust violation.
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Their argument is this: Amazon has used its market power both to influence which books get attention (by featuring them more prominently on its Web site, a practice I’ve also written about) and, in some cases, to drive prices lower. These practices, the authors argue, squeeze publishers, which makes them more risk-averse in deciding which books to publish. As a result, they claim, publishers have been “dropping some midlist authors and not publishing certain riskier books, effectively silencing many voices.” And this is bad not only for the non-famous writers who go unpublished, but for their would-be readers, who are denied the ability to hear those voices.
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While it may be attractive, on a philosophical level, to argue that Amazon is bad for us because it makes our culture poorer, measuring that effect would be difficult, if not impossible. How would one go about valuing an unpublished masterpiece by an unknown author? This is further complicated by the fact that Amazon makes it easy for authors to self-publish and have their work be seen, without having to go through such traditional gatekeepers as agents and publishers; Amazon might argue that this allows for more free flow of information and ideas
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Furthermore, U.S. law is concerned with diversity in media, Crane said, but that tends to be regulated through the Federal Communications Commission, not the Justice Department.
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it’s quite possible the Justice Department will read the Authors United letter and dismiss it as uninformed. But even if that happens, Preston said, it will have been worthwhile for the writers to have made their case.
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Authors United’s larger mission, he told me, was this: “We hope to show the public that getting products faster and cheaper isn’t necessarily the greatest good. It comes at a human cost.”