Amazon is now the most interesting and important problem in American antitrust law. While it was hardly the first step in the firms competitive evolution, Fridays breathtaking news that the e-commerce giant will acquire Whole Foods brings into sharp focus one of the deepest tensions in our antitrust law as it has evolved under 40 years of conservative orthodoxy. Amazon is enormous, and it is apparently rapacious and remorseless. But at least superficially, it has done nothing in its 20-year life but sell things more cheaply and innovatively than its competitors. That is to say that its done just the thing that antitrust law says firms are supposed to do: It has competed on price and quality. The law has therefore proven persistently uninterested in its conduct.While this new merger must undergo federal antitrust review, the Trump administration is unlikely to challenge it. The Obama administration probably wouldnt have either, and neither would a Clinton administration.
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