Does anyone have a good idea of how we should regulate networks effects businesses such as Facebook and Amazon? It doesn't make sense to split them up regionally and splitting them in half to create a duopoly creates all sorts of inefficiencies.
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The only semi-reasonable idea I can come up with is a monopoly tax on profits. Some sort of extra tax that is triggered on businesses exceeding a certain marketshare. Please, no one tell me Amazon's retail business doesn't make money, because if you believe that, you are wrong.
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How India and China are regulating their e-commerce marketplace giants (from
@henlaub's ecommerce newsletter)pic.twitter.com/X9zvajmDJf
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Replying to @Molson_Hart
In order to control a marketplace that is based on network effects - regulation such as what is seen in France - legislate that supply chain can’t be used as a weapon (Ie. No free shipping).
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Replying to @henlaub
Secondly - I view private labels as murky ground for the marketplaces (high margins but more risk) and as such you can’t be the marketplace and also operate private label businesses. It is one or the other in my opinion.
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I agree strongly with this. Amazon is foolish to be getting involved in so many private label products. It's the right play from a business standpoint, but when you consider the regulatory risk from their not playing fair, it's on balance a bad move.
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