S monopoly a good example of competitive free enterprise

For Amazon, this could apply to its leverage over prices charged by shipping firms such as FedEx and UPS. вЂњMonopsonyвЂќ refers to the reverse of a monopoly вЂ“ a situation where there is only one buyer that controls the market because it is the main purchaser of goods and services from sellers. He added that this posses a political threat because вЂњa lot of publishers and authors are terrified of speaking out about AmazonвЂ™s monopolyвЂќ. The firmвЂ™s dominance can and does prevent other companies from competing in certain industries.Д«arry Lynn, director of the Open Markets Institute вЂ“ which studies corporate concentration in the US вЂ“ told Al Jazeera that he believes Amazon holds a monopoly over the US book market, as well as the market for some types of toys and electronics. Is Amazon dominant in specific sectors?ДЄmazon, based in Seattle in Washington state, is a tremendously large conglomerate, with a valuation that hovers around $1 trillion. But online represents only 10 percent of the entire US retail market вЂ“ with 90 percent still brick-and-mortar stores. So its share of the e-commerce market in the USВ is 37.7 percent, according to eMarketer. Would Amazon qualify as a monopoly?Дespite its explosive growth, Amazon falls short of meeting theВ US Department of JusticeвЂs monopoly threshold, defined as a market share of greater than 50 percent.В By next year, Amazon says it will have around four percent of all retail sales in the US, and just one percent of the $25bn global market. The core principle is to ensure competition and protect consumers against predatory practices вЂ“ thus preventing monopolies and strengthening the open-market economy. US antitrust law generally focuses on whether a company harms customers.

вЂMonopolyвЂ™ sounds bad, but is it really?Д®conomists say too much economic power held by one corporation stifles innovation, drags down wages, gives consumers fewer choices, and makes an economy less competitive. The implication is that monopolistic companies are able to destroy competitors and dictate prices.

How is вЂmonopolyвЂ™ defined?ДЄccording to the Merriam-Webster dictionary, a monopoly is вЂњcomplete control of the entire supply of goods or of a service in a certain area or marketвЂќ.

With Amazon workersвЂ™ strikes in the US and Germany coinciding with its two-day Amazon Prime event вЂ“ which began Monday вЂ“ the company faces doubts about its policies and whether it has monopolistic power. Loyal customers love it, business rivals fear it, and public officials increasingly target it.ДЄs a global retailer, cloud services provider, and media production house, Amazon is the largest internet company in the world and the second-biggest employer in the United States.

S monopoly a good example of competitive free enterprise