Amazon also builds other “smart home” products, so they have this pipeline of thousands of companies that work with them on being Alexa-enabled. Those are listening in the background, collecting a lot of data. Amazon has this line of Echo products that are speakers in people’s homes. Wood: You also mentioned instances where Amazon asked for customer data from smaller sellers. So our investigation revealed that this is quite common at Amazon because their partners work with them not just on retail - they might work with them on retail but have cloud computing with, and they might have marketing with them on their streaming devices - that they’re able to leverage that when these partners come to the table on terms, and they’re able to, in the words of the partners, abuse it in these negotiations.
Mattioli: So Amazon, because they’re one of the last remaining conglomerates and because they have this concentrated market power in so many different industries, they’re able to leverage that in their negotiations. Molly Wood: Do you have a sense of how common “offers” are like that from Amazon? He felt like he had no choice but to pay that. Dana Mattioli (Photo courtesy of Wall Street Journal)ĭana Mattioli: There were a lot of knowing glances and an offer from Amazon, that if he paid $1.8 million in marketing and advertising spend, his counterfeit problem would go away.
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