Hello, i only a couple years into learning about investing and i am sort of trying to figure out what exactly causes a company to be broken up. Ive been reading up in a few places like investopedia on the subject. I understand there are two general types: Via anti-trust action or Via spinoffs. For various reasons, some obvious some not, Amazon is incredibly unlikely to split via spinoffs.
It also appears that in many cases new legislation is made or even required to enforce anti-trust rules or make new ones.
The FTC focuses on segments of the economy where consumer spending is high, such as healthcare, pharmaceuticals, professional services, food, energy, computer technology and Internet services...
Amazon is in almost all of these sectors, it also disrupts sectors it gets into as we have all seen with the aquisition of whole foods. KR recieved a 33% drop just on news of the aquisition. Amazon leads in Voice Assistance, Cloud Services, Ecommerce, and studios. And is a big player in Entertainment and video. Theres already rumors of another aquisition soon. Their entire strategy is undercutting competitors even if it makes them a loss on a particular item or service.
And lets not forget what we did to Microsoft when it started killing small companies off
It seems like the valuation of Amazon is based on this thinking that it will eventually be in every market, every sector, pervasive throughout the world. This seems unacceptable for a captialistic economy.
www.investopedia.com/terms/a/antitrust.asp
I guess my question comes down to where is the line drawn, and amazon is broken up? Or any company for that matter.
Further, Why has Amazon been allowed to dominate in such a way? Will it take legislation to break them up? Will the US or European governments take action?
Disclaimer: I hold no stock in AMZN im just observing, trying to figure out how these systems work. Or if they work.
Submitted February 04, 2018 at 10:32AM by Pokehunter217 http://ift.tt/2s91krC
