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New York SBDC Research Network: 02/01/2019

What constitutes “ownership” in this case is defined as having at least 51% possession by residents or long-lasting resident aliens who are: BLACK, Hispanic, Asian, Pacific Islanders, Native American, Alaskan women, or Natives. The benefits of certification? Well, take into account that Minority Business Certification provides an opportunity to do business in and with New York State as your business will be outlined in the statewide Directory of Certified Minority and Women Owned Business Enterprises. State companies and contractors use this catalog. And since both Governor and the Legislature have mandated the state government to provide better opportunities to women and minorities your chances to do business are increased automatically. Certification does not ensure more business but provides a better chance to contend.

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Joe: Can this be studied as proof that Amazon is pricing items so low that no one else can compete, and even they are trying to turn into a monopoly? Paul: Absolutely not. Amazon is making huge capital expenses in infrastructure presently, warehouses, acquisitions, increasing Amazon Web Services, etc. They could be selling stuff at a huge profit, but spending so much a reduction is run by them. The loss, alone, is evidence of nothing.

Joe: Can you imagine a situation when Amazon would be looked into by the DOJ? What would Amazon have to do to attract their negative attention? Paul: Quite honestly, given Amazon’s current procedures I can’t think of one. On the other hand, antitrust prosecutions vary with the political climate, so who understands what the future will bring.

Amazon would need to do something pretty obvious, and egregious, to be prosecuted. Joe: Hachette has finally reached a contract with Amazon, it seems like they’ve accepted the same terms as Simon & Schuster, which managed to close an offer quickly relatively. Joe: I’ve called the big 5 (formally Big 6) a cartel and an oligopoly because for decades they have controlled paper book distribution.

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Their contract terms and royalties for authors are practically similar and notoriously one-sided, because web publishers have been the only practical way for writers to get into bookstores and reach visitors. Also, they are one of the only products that images the MSRP on the merchandise itself, and these prices are much lockstep in one publisher to another pretty.

They have essential made a decision which writers get published, and by expansion which books get read by the global world. Do you consider the terminology fits, and what’s the DOJ’s view on oligopolies? Paul: A cartel is illegal in America (but not in many places overseas) if it leads to the members acquiring a monopoly and shutting everybody else from the market.