Is Amazon a monopoly?

Our President Donald Trump thinks so.

Amazon makes a huge revenue of $232 billion a year. Their biggest competitor is Walmart which receives a revenue of an estimated $515 billion a year.  Amazon is the largest company in the world and the second biggest employer in the United States. Amazon has stepped up their competition recently by offering free ONE day shipping for prime members. Amazon also has been working on running pharmacies, grocery stores and even their own mailing system. I mean think about it, when you can’t find something you need in an average store, or when Christmas time comes around, where do you resort to? Amazon. It is a huge convenience and big part of our lives today.

So, is Amazon turning into a monopoly?

A monopoly is “complete control of the entire supply of goods or of a service in a certain area or market”.

They are becoming unstoppable. Executives are fearful of what Amazon is doing today, and what they can accomplish in the coming years. Economists say too much economic power held by one corporation drags down wages, gives consumers fewer choices, and makes an economy less competitive.

It has also been asked, could Amazon become the first U.S company to be worth a trillion dollars? It is very possible and the chances are through the roof. Many Americans believe it is very possible. However, the company would have to hold at least 50% of retail revenue, Amazon only holds about 37%. This, making it not a monopoly according to law.

If re-elected in 2020, Trump could, through executive action, put pressure on the legislative and judicial branch to put a hold on Amazon. He also has offered that Amazon should be split up. By this, Trump means that their new idea branches of the company should be separate from their main source of income.

Monopoly or not, Amazon is a huge competitor for retail stores and possibly even mailing systems soon and is a huge part of our lives.

This is a graph of Amazon sales just in the past year, and 7 days.