FTC to Define 'Big Box Store' Market in Upcoming Amazon Lawsuit
The Federal Trade Commission (FTC) is gearing up to define the market in its upcoming lawsuit against Amazon. The expected definition is 'Big Box Store Online and Retail', a broad scope that includes both online and traditional retail sectors.
Small and medium-sized businesses (SMBs) typically focus on selling their products at the best price and in the highest volume, rather than confining themselves to specific marketplaces. The FTC's market definition in this case will face scrutiny in federal court, where existing antitrust case law may challenge unsubstantiated theories.
The FTC's market definition may not fully consider the 'E-Commerce Effect', which has significantly benefited SMBs. Online and in-person retail prices are closely linked, demonstrating the fluid nature of these divisions. The FTC's expected market definition in fall 2023 is likely to encompass a wide retail market, including major online platforms like Walmart, eBay, and Target, as well as brick-and-mortar stores. This is to illustrate Amazon's alleged monopoly position by comparing its share within both online and traditional retail sectors.
Modern consumers often consider both online and in-person shopping options, a trend that the FTC's market definition may not fully reflect. The retail market is increasingly omnichannel, integrating multiple methods of interaction and providing consumers with a broad range of choices.
The FTC's market definition in its lawsuit against Amazon is expected to be broad, covering both online and traditional retail sectors. This definition will be tested in court and may not fully align with how modern consumers shop or consider the benefits of the 'E-Commerce Effect' on SMBs. The outcome of this case could significantly impact the retail industry's future.
