Did PopSockets Slow the Bezos Bulldozer?
February 25, 2020
At a recent hearing of the House Subcommittee on Antitrust, Commercial, and Administrative Law, major tech players Amazon, Apple, Facebook, and Google were all accused of anticompetitive practices. Representatives listened to executives from Sonos, Basecamp, Tile, and PopSockets describe how those larger companies have unfairly wielded their market dominance against smaller players. For one CEO, Amazon’s behavior was especially egregious. Mashable reports, “PopSockets CEO Calls Out Amazon’s ‘Bullying with a Smile’ Tactics.” Reporter Jack Morse writes:
“Barnett, under oath, told the gathered members of the House that Amazon initially played nice only to drop the hammer when it believed no one was watching. After agreeing to a written contract stipulating a price at which PopSockets would be sold on Amazon, the e-commerce giant would then allegedly unilaterally lower the price and demand that PopSockets make up the difference.”
When asked how Amazon could ignore their contract, Barnett elaborated:
“‘With coercive tactics, basically,’ he replied. ‘And these are tactics that are mainly executed by phone. It’s one of the strangest relationships I’ve ever had with a retailer.’ Barnett emphasized that, on paper, the contract ‘appears to be negotiated in good faith.’ However, he claimed, this is followed by ‘… frequent phone calls. And on the phone calls we get what I might call bullying with a smile. Very friendly people that we deal with who say, “By the way, we dropped the price of X product last week. We need you to pay for it.”’ Barnett said he would push back and that’s when ‘the threats come.’ He asserted that Amazon representatives would tell him over the phone: ‘If we don’t get it, then we’re going to source product from the gray market.’”
PBS, the TV outfit, took a close look at Amazon and saw George Orwell, not the smiling box. So with JEDI stalled, Amazon seems to be popping and socketing to the rhythm of ringing cash registers.
Cynthia Murrell, February 25, 2020
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