The article today in the Register on Amazon’s “profit eating” strategy raises interesting questions, Why should government’s or shareholders, around the world, tolerate a business that wipes out those paying local sales taxes, VAT and business rates but appears to generate no taxable profits anywhere?
When Andrew Carnegie, JP Morgan and John D Rockefeller (“The men who built America“) followed similar business strategies (targetting long term market domination rather than profitablity) the response of the US Government was, eventually (after the assassination of the President) robust: for example the destruction of the railway cartels that were using their power to similarly dominate the embryonic road haulage industry. The result was a resurgence of growth and the break up of Standard Oil made Rockefeller even richer.
What am I missing?
Or are we about to see a re-run of history, this time on-line – with a reaction against dominant players about to be triggered, once again, by the way they stand in the way of recovery from recession and a new wave of innovation and growth.