Read the article „Can Amazon keep growing like a youthful startup?” by The Economist(Reading 1). You may supplement your understanding of the issues by carrying out your own research (reference all material using a generally accepted standard citation).
1. Critically evaluate and discuss Amazon’s value proposition from the consumer’s perspective for both the e-commerce (retailing) and cloud services. (6 points)
2. Applying the relevant economic frameworks from class, critically analyse and discuss the two main markets Amazon serves. From a strategic standpoint, would it make sense to separate the two businesses? (12 points)Now, turn to the press release by the European Commission (Reading 2).
3. Explain the economic meaning of a dominant market position. How is dominance typically determined in competition cases?(2 points)
4. Explain why the abuse of a dominant position is a violation of the European competition rules. In your answer, you may provide examples of forms of abuse that have been identified in the past in case law. (4 points)
5. What (if any) consumer harm may result from Amazon’s alleged use of third parties’ data? (6 points)
