Amazon may have withstood stricter antitrust rules because of internal build capacity

Core Insights - The article discusses the implications of new antitrust guidelines issued by the U.S. Federal Trade Commission (FTC) and Department of Justice (DOJ) on Amazon's past acquisitions and the potential for future enforcement actions [3][7][15]. Antitrust Guidelines and Amazon - The 2023 guidelines allow for a broader basis to challenge acquisitions, particularly focusing on multi-sided platforms and nascent competitors [7][8]. - The guidelines emphasize the potential for "vertical foreclosure," where a large company could restrict a supplier from serving competitors [9]. - The guidelines also allow for the consideration of a series of acquisitions, which could lead to challenges against Amazon's numerous tech startup acquisitions [9][14]. Evaluation of Past Acquisitions - A study evaluated nine major Amazon acquisitions, including Zappos and Whole Foods, to determine how they would fare under the new guidelines [10]. - The study found that many of these acquisitions could have been challenged, particularly Zappos, which had the potential to expand into a broader e-commerce platform [11][12]. - Concerns were raised about the acquisition of Ring, as it could have implications for competition in the smart home market [13]. Concerns About Innovation and Enforcement - The new guidelines may discourage small firms from innovating due to the increased likelihood of acquisition challenges, potentially leading to fewer startups [4][14]. - The vagueness of the guidelines could lead to politicization in antitrust enforcement, with varying degrees of scrutiny depending on the administration [4][16]. - The study suggests that while the guidelines are stricter, they lack clear boundaries, which could result in arbitrary enforcement actions [15][16].