Amazon used secret algorithm for increasing prices for your products and this helped it increase its profit from sales of goods in all categories of purchases, thereby favoring unfair competition.
This algorithm was used in the so-called “Project Nessie” and allowed the company to earn more than $1 billion in revenue, according to a monopoly complaint filed by US Federal Trade Commission (FTC) and to which the American newspaper had access Wall Street Journal.
Specifically, Amazon would use this algorithm to test how much it could increase prices in such a way that customers competitors Follow this trend and strengthen your company’s position in online sales by tracking the movements of other companies.
So, by making their products more expensive, competitors also raised prices and charged customers more money.
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According to Amazon employees, the company also used “Project Nessie,” which is now obsolete, to create a kind of “advertising spiral.”
This means that once the brand becomes equal product price Like Amazon, other competitors will maintain this cost and limit other companies’ profit margins.
‘Project Nessie is one of several cases in which a complaint filed with the Federal Trade Commission alleges Amazon’s Monopoly Power had a widespread impact on rising prices for retail consumers.
Fewer options for retailers
The FTC also notes in the complaint that many sellers use Amazon because of its reach and customer base, but the company prohibits them from offering their products at a lower price from other retailers.
In fact, according to this Commission, if they offer their products in other online storesAmazon “punishes” them and stops showing them on their website. However, he claims that fees and commissions to sellers have risen sharply in recent years, as the company now receives almost half of the total amount of each product sold by a third party on the platform.
It also explains that sellers feel obligated to use Amazon’s logistics program to be included in Amazon Prime and that they buy advertising on their website to reach a large number of potential customers.
(according to information from Europe Press)
Source: Aristegui Noticias

Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.