Why Breaking Up Amazon Is in EVERYONE’S Best Interests

NOTE: This article is was BLOCKED on LinkedIn after someone at Amazon Enterprise Support Escalations spotted the article; it is being mirrored here.

I often tell people that Amazon is not a retailer… they are a DISTRIBUTOR disguised as a retailer (they even call them ‘distribution centers’). If you understand the retail process, you understand that retailers purchase their product from large distributors; even Wal-Mart has to deal with distributors and manufacturers to stock their warehouses. But as Amazon has no retail space and they purchase directly from manufacturers and even create their own brands… they have become their own distributor.

Not only that, they have their own

• delivery network
• telecommunications network (part of AWS)
• AWS

They are effectively able to put entire economies out of work due to lack of regulation.

But of course Amazon is super convenient… unless you are one of the thousands of workers whose jobs they have displaced. And without regulations on monopolies and monopolistic practices (such as union busting) breaking up Amazon into separate sections is the most sensible conclusion.

What Are The Benefits of Breaking Amazon Into Smaller Companies?

Imagine if their ‘Distribution centers’ could be used by ANY business? They still make a profit. In fact their profits would probably quadruple. But they are opened up and more closely regulated to make sure they are fair for all.

Imagine if their delivery network was available to all? If they argue that their distribution center can’t be used by all because it isn’t really a distribution center, that leaves the delivery network open to be used by all as a separate entity as it competes with other delivery companies.

Imagine if AWS was separate from Amazon entirely? Amazon could still use AWS if they wanted… at the same price that everyone else had to pay. This would also separate their telecommunication service and other services. This also would set precedent for separation of other CLOUD companies from Microsoft (who has a history of monopolistic practices) and Google(who has been threatened with legal action over monopolistic actions for the last few years).

How Economies Could Benefit?

Amazon would continue to thrive but as separate factions and small and large businesses would be able to now make use of the internals of Amazon by using it’s inventory system, it’s shipping system, it’s communications, it’s metrics.

Cloud companies might actually decide to combine efforts (much like the motor companies did to work against Japan motor companies) to avoid being broken up and regulated.

In Conclusion

If done right, a broken up Amazon would reinvigorate the economy and provide solutions without destroying any one companies bottom line.