Amazon Is Targeted By Businesses That Sell Goods Through The Online Retailer

A growing number of e-commerce retailers are banding together to fight Amazon.com Inc. 

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The Responsible Online Commerce Coalition was founded on Thursday by a trio of well-connected antitrust advocates who will advocate for the US government to reduce Amazon's online dominance. 

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A coalition advocate, Damien Geradin, says Amazon has been given a pass to a large extent. An antitrust lawyer who specializes in opposing large corporations and tech companies, he co-founded Geradin Partners. 

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As a result of Amazon's actions, proponents say, the group will help strengthen its political power. In addition to bringing its stories directly to policymakers overseeing tech companies, Amanda Lewis, a coalition co-founder, worked as an antitrust policy analyst with the House Judiciary Committee.

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“During our 16-month investigation of some of the largest tech companies, Lewis led the House Judiciary Committee’s work on Amazon, and found that policymakers were moved more by small business owners telling their stories than five touches from Amazon lobbyists,” he said.

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A request for comment emailed to Amazon was not immediately responded to.

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A group to mobilize small app developers against Apple Inc.'s policies, the Coalition for App Fairness, brought Geradin and Lewis together. A similar coalition focusing on Amazon would be useful, they concluded.

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In addition to several publicly traded companies and small third-party sellers, the group is yet to announce the names of its members. There is a fear among many companies that Amazon will retaliate.

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In the last Congress, David Cicilline, Democratic Representative of Rhode Island, and former head of the House Judiciary antitrust subcommittee said Amazon's monopoly power over sellers allows them to suspend or change sellers arbitrarily, raise fees, and provide themselves with information and tools that entrepreneurs are unable to access. I applaud the coalition of sellers that have been formed to resist these policies."  

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Their stature is compared to the tech companies, which spend millions on lobbying and have an extensive network of trade groups in Washington. Geradin, Lewis, and Tom Smith, co-founders of Geradin Partners, admit they don't have the resources to compete with the tech companies. Founders of the coalition hope to charge companies fees based on their size, so smaller companies will pay less and larger companies more. 

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A global coalition to fight Amazon has been formed as governments consider cracking down on the e-commerce giant. Amazon's potential anti-competitive behavior is being investigated by the US Federal Trade Commission. As part of the Digital Markets Act, the European Union is enacting antitrust regulations aimed at regulating the businesses of "gatekeeper" tech firms such as Amazon, Apple, Alphabet Inc.'s Google, and Meta Platforms Inc. There are also plans in the UK to enact a similar regime. 

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Seller commissions should be competitive, counterfeit products should be restricted from circulating online, sellers should be able to offer their products at a discount, and search results should be fair and non-discriminatory. 

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He saw during his time on Capitol Hill that "a group that's focused on Amazon's growing harms is needed, especially at a time when Amazon is rapidly acquiring other companies and rapidly expanding into other areas," according to Garrett Ventry, former chief of staff for Colorado Republican Representative Ken Buck and lobbyist for the Coalition for App Fairness.