“There’s nothing in the bill that would prevent Amazon from selling any of its private-label brands...There’s nothing in the bill stopping Amazon from continuing its free shipping program” 

WASHINGTON – In an article fact checking technology industry group claims that bipartisan legislation introduced by U.S. Senator Amy Klobuchar (D-MN), Chairwoman of the Senate Judiciary Subcommittee on Competition Policy, Antitrust, and Consumer Rights, and Senator Chuck Grassley (R-IA), Ranking Member of the Judiciary Committee, would harm Amazon Prime and its Basics brand products, The Gazette of Cedar Rapids, Iowa, found that the accusations “go too far,” giving them a D grade overall. 

The claims were from a series of online targeted ads from a group funded by technology companies including Amazon.

Introduced by Klobuchar and Grassley in October, the American Innovation and Choice Online Act would restore competition online by establishing common sense rules of the road for dominant digital platforms to prevent them from abusing their market power to harm competition, online businesses, and consumers. The bill would not stop companies from offering their own products -- it would simply take steps to stop companies from preferencing their own products or services in a way that harms competition.

From the article:

  • “Amazon has been known to promote its own products at the top of its search results, according to ProPublica, the Washington Post and the Wall Street Journal, and has even scooped data from other third-party sellers on its site to create its own merchandise.”
  • “...there’s nothing in the bill that would prevent Amazon from selling any of its private-label brands.”
  • “There’s nothing in the bill stopping Amazon from continuing its free shipping program...Instead, the bill would prevent Amazon from requiring third-party sellers on its platform to use logistics and fulfillment services, ‘but sellers would still have the option to use those services if they want.’”
  • “The bill would forbid dominant platforms — in this case, Amazon — from conditioning other companies’ placement on the platform on whether they purchase other services, Hal Singer, an antitrust economist at consulting firm EconOne, told Politico.”

# # #