For several decades, the guiding principle in U.S. antitrust enforcement has been protecting the interests of consumers. Keeping the consumer welfare standard at the forefront of antitrust policy provides important benefits, including protecting consumers, promoting economically efficient outcomes, and imposing a disciplined structure on antitrust enforcement, which goes a long way toward preventing the politicization of antitrust policy. The FTC’s antitrust lawsuit against Amazon shows how these benefits are lost when consumers are removed from the forefront of antitrust enforcement.
Amazon’s Marketplace is highly popular with consumers because it delivers more choices, fast delivery, and lower prices. The third-party seller ecosystem on Marketplace is thriving, and direct sales by Amazon, which comprise only a small share of total sales on Marketplace, add more competition and choice for consumers. Small and medium-sized sellers use Marketplace to gain access to customers at a far lower cost than if they had to build their own distribution networks.
