The Federal Trade Commission’s latest antitrust lawsuit against Amazon has brought to light information about the company’s internal business practices. But the public is still in the dark about how exactly Amazon makes its money. ILSR Co-Director Stacy Mitchell talked to Wisconsin Public Radio about how Amazon has kept its profits under wraps and what the lawsuit could mean for the company’s future.
“Amazon has for a long time cultivated this idea that it makes very little profit on its ecommerce platform,” Mitchell explains. But the FTC lawsuit argues that the huge profits Amazon is actually making on the site is evidence that the behemoth is hindering competition.
Also read Mitchell’s article Amazon’s Big Secret,where she writes about how Amazon has kept these profits secret – and why the SEC must enforce corporate financial disclosure rules.
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Ron Knox writes in Teen Vogue that, with any luck, the government’s antitrust case will mean a better music industry for everyone.
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