After following Uber and Lyft, it's almost refreshing to find a tech company that's competent at being evil

Back in Arkansas, we used to talk about Wal-Mart "killing a town twice." The company would open a store in a small town, drive the local merchants out of business, then close that location so that the residents would have to do their shopping at the Wal-Mart in the next town ten or fifteen miles down the road.

The underlying logic remains the same. If you have market dominance and deep pockets, your quickest path to higher profit margins is to drive the little guys out of business. The complete lack of shame does, however, seem to be a bit of a 21st Century innovation.

From Gizmodo.

Citing interviews with merchants of the e-commerce giant, as well as internal sent alerts to those individuals, Bloomberg reported Monday that Amazon is effectively penalizing its sellers if it finds that their products are being offered for a lower on rival websites. If it finds competitive pricing elsewhere, Amazon alerts a merchant with price comparisons between the two marketplaces and informs them that their product has essentially been demoted by Amazon’s system and will be more difficult to find or purchase on its site, according to the report.

Bloomberg said the practice began in 2017, but added that alerts have been more frequent as Amazon works to maintain its dominance in the e-commerce space.

The way that Amazon works to undermine sales for merchants of competitively priced products is to remove the “Buy Now” button that appears to the right of products on its platform, Bloomberg reported. While the product can still technically be purchased, it makes the product more difficult for shoppers and can hurt a seller’s bottom line. It also means that sellers are being forced to adjust their prices on rival marketplaces, which can be a blow to any attempts to offset the huge chunk of change that Amazon takes for itself just to list merchant products on its site.

“Amazon works hard to keep prices low for both customers and sellers. We have very competitive fees for sellers and we make significant investments on their behalf to continually improve our store and empower their businesses,” a spokesperson told Gizmodo in a statement by email. “In our store, we feature the offer that predicts the best shopping experience for the customer based on a number of factors including price and delivery speed. Sellers have full control of their own prices both on and off Amazon, and we help them maximize their sales in our store by providing them insights on how to be the featured offer.”

Of course, Amazon controlled just under half of the e-commerce market as of last year, and it only gets bigger every day—meaning online sellers have few places to go to find a customer. And with online markets hollowing out the brick and mortar space, online sellers don’t really have a choice to not be online. This kind of practice might keep prices down for consumers and users glued to Amazon dot com, but it does not create healthy competition or a sustainable marketplace for sellers.