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Originally Posted by Top100EbooksRank
If Amazon gains 95% of the ebook market and abuse its power. Buy ebook at $10.49 and sell for high price (for example $17), there will face competition overnight.
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This.
Amazon is a retailer, not a producer. It's not like owning all of the oil refineries or diamonds or memory chip fabs. Amazon's "monopoly" came about solely because they resold what other people made better/cheaper/more conveniently.
And of course the only reason they got 90% of the market share originally is because they were first to market with the integrated e-book/comprehensive bookstore model. It's easy to get numbers like that when no one else is competing.
But within a year of B&N entering the market, they owned 20% of it. Despite having slightly higher priced books. (This was before agency).
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Apple/Google/Facebook could buy ebook at $10.49 and sell for $14 (undercut Amazon by $3).
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DOJ will file a lawsuit because Amazon raises prices detriment to the consumers.
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There's no grounds for a lawsuit - Amazon can raise prices if it wants. But of course what would happen is the competitors would gain market share by undercutting prices.