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How Amazon's Low Prices Raised Prices

The e-commerce giant is accused of pressuring wholesalers to increase prices for rival retailers.

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Low prices have long been a major part of Amazon’s appeal, but some of those bargains may not be entirely what they seem. According to an investigation by the state of California, the e-commerce giant allegedly pressures some wholesalers to raise prices for rival retailers so Amazon’s costs remain low in comparison. This video takes a detailed look at the company’s shady pricing practices, including interviews with suppliers and email evidence that shows potential lapses in ethics.

Questions:

  1. How does Amazon allegedly pressure some wholesalers into altering prices?  

  2. Do you think Amazon is too large and should be broken up into smaller companies? Why or why not?