Mike Davis: Amazon’s Chicken Little Syndrome

June 10, 2022


Unless you’ve been hiding under a rock these past few weeks, you have seen the false and deceptive TV ads decrying Senator Chuck Grassley’s American Innovation and Choice Online Act (AICOA). One of Big Tech’s favorite arguments against the bill is that it would somehow break Amazon Prime. This is laughable for so many reasons, but let’s begin by examining this handy quote from Amazon’s top lobbyist and take it from there:

Get it? Amazon’s top lobbyist stated months ago that the AICOA would not break Prime, and yet, groups funded by Amazon continue to run ads claiming it will. 

There is one very important reason Amazon’s Prime argument is bogus and should be ignored. That reason is – in a word – competition. You see, the real reason Amazon fears Senator Grassley and the AICOA is that Amazon is a monopoly that doesn’t want to face competition, and the AICOA opens Amazon up to competition in a way that benefits consumers and small businesses. Simply put, the bill would place guardrails around Amazon and other tech giants to prevent them from self-preferencing their own products and services, including Prime. Instead of the chokehold Amazon has on delivery today, it would have to compete on fair terms with other delivery services. 

Today, Amazon has locked out competitors and forces its sellers to use Amazon shipping and storage services or have their products demoted by Amazon causing their sales to plummet. Many of these sellers would like to use UPS or the USPS to deliver to customers, but Amazon makes this an impossible choice. UPS and USPS were able to compete for Prime business until 2019 until Amazon locked them out from Prime. The Grassley bill would fix this, making it a win for consumers and small businesses.

If you would like to learn more about why Amazon Prime and the Amazon retail platform are raw deals for everyone except Amazon, here are some great articles to get you started (some behind a paywall):

Amazon Restricts How Rival Device Makers Buy Ads on Its Site – WSJ

Prime Power: How Amazon Squeezes the Businesses Behind Its Store – The New York Times (nytimes.com)

Amazon Changed Search Algorithm in Ways That Boost Its Own Products – WSJ

Amazon Has Ceded Control of Its Site. The Result: Thousands of Banned, Unsafe or Mislabeled Products – WSJ

Amazon Puts Its Own “Brands” First Above Better-Rated Products – The Markup

These and other articles reveal the truth about Amazon. The company is a Great Vampire Squid sucking on the face of small business sellers and consumers. The AICOA would fix this, which is why Congress must pass it this year.

In the beloved children’s story Chicken Little, the main character is known for their alarmist tendencies and for spreading misinformation. 

Don’t be fooled by the Chicken Little propaganda funded by Amazon. Take action today and support Senator Grassley and the AICOA.

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Unlike the Big Tech monopolies, the Internet Accountability Project pledges to never sell or share your personal information, which is your property.