Quote:
Originally Posted by rhadin
It is both. When Amazon is threatened by competition, it sells at a loss and lets other parts of its business pay the bills. As soon as the competition disappears, Amazon increases prices so that ebooks support themselves. Then when someone else comes along who tries to undersell Amazon and be competitive, Amazon cuts prices to below cost again and lets other parts of its business support the ebooks. When the new competitor goes out of business because it can't sustain the losses, Amazon raises its prices so that ebooks support themselves. When a new competitor comes along and tries to compete with Amazon, Amazon cuts prices to below cost . . .
This is how it is done. This is how Amazon is likely to act because shareholders will demand profits. Is it guaranteed that Amazon will act this way? No, but how likely is it based on current practices that Amazon will let someone undercut it? Not likely at all.
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See post above. The DOJ doesn't agree with you. I'd really like to see someone actually come up with some hard evidence for this line, instead of just repeating it over and over in the hope that that will make it true.