Amazon Could Be Forced To Sell Logistics Business
Amazon may be forced to sell its logistics arm, the mass of warehouses and delivery centres that are responsible for the company’s lightning-quick deliveries, due to proposed antitrust legislation.
Washington Democrat Pramila Jayapal has proposed a bill with bipartisan support that would ban the Fulfillment By Amazon service, which offers quick delivery and “preferential service” in exchange for a fee.
“The bipartisan Ending Platform Monopolies Act requires dominant platforms including Amazon to divest lines of business — such as Fulfillment by Amazon — where the platform’s gatekeeper power allows it to favor its own services,” said Jayapal spokesman Chris Evans.
“Numerous third-party sellers reported feeling that they had no choice but to pay for Fulfillment by Amazon in order to sell their products.”
According to Bank of America, Amazon’s logistics business will be worth north of US$230 billion by 2025.
Brian Huseman, Amazon’s vice president of public policy, has struck out against the proposed bill, saying it “would have significant negative effects on the hundreds of thousands of American small- and medium-sized businesses that sell in our store, and tens of millions of consumers who buy products from Amazon.”