WASHINGTON, DC – The National Association of Wholesaler-Distributors (NAW) issued the below statement thanking Judiciary members for the passage of the bipartisan legislation to protect third-party sellers and small businesses from the abusive and anti-competitive tactics of monopolistic companies like Amazon. NAW calls on Speaker Pelosi and House Leadership to quickly bring these bills to the
WASHINGTON, DC – The National Association of Wholesaler-Distributors (NAW) issued the below statement thanking Judiciary members for the passage of the bipartisan legislation to protect third-party sellers and small businesses from the abusive and anti-competitive tactics of monopolistic companies like Amazon. NAW calls on Speaker Pelosi and House Leadership to quickly bring these bills to the floor and urges all Members to support this historic and bipartisan legislation.
From Blake Adami, NAW Vice President of Government Relations
Today was a major first step in protecting third-party sellers and curbing Amazon’s anti-competitive and abusive actions. We congratulate House Judiciary members for all the work they have conducted over the past two years. Addressing unfair acts by monopolistic companies like Amazon is crucial to protecting millions of small- and medium-sized businesses across the country.
Current laws do not adequately protect the Business-to-Business (B2B) or Business-to-Consumer (B2C) markets from Amazon’s exclusionary and unfair practices and this legislation moves to restore competition in both. We call on Speaker Pelosi and House Leadership to quickly bring the legislation to the House floor.
Why NAW Supported the House Judiciary Legislation to Hold E-Commerce Platforms Accountable:
- Dominant platforms reap enormous and unfair advantages by using third-party sellers’ proprietary information (such as products sold and prices, quantities, and customer identities) to develop and sell the platform’s own products.
- The Antitrust Subcommittee found that by owning and managing the platform, including setting its rules and prices, Amazon plays both sides by selling its own products in direct competition against third-party sellers who sell on Amazon’s B2B marketplace.
- The legislation prohibits discriminatory conduct by dominant platforms, including banning self-preferencing and picking winners and losers in the digital marketplace.
- Dominant marketplace control and abuse is causing real harm to the highly competitive B2B system. Among the important provisions is prohibiting the dominant platform from using seller data and engaging in conflicts of interest. The bills seek to restore fair competition to the Business-to-Business (B2B) market, where many NAW members compete.
- Earlier this week, NAW urged members of both parties to work together to hold unregulated monopolies accountable.
- Last week, NAW applauded the bipartisan work of Antitrust Subcommittee Chairman Cicilline, Ranking Member Buck, Members of the Judiciary Committee, and staff to promote free and fair competition.
- In March, NAW supported President Biden’s nomination of FTC Chair Lina Khan to the commission.
- In February, NAW sent a letter to Judiciary Subcommittee Antitrust, Commercial and Administrative Law Chairman David Cicilline and Ranking Member Ken Buck highlighting Amazon’s monopolistic treatment of third-party sellers.
- Also in February, NAW sent letters urging further congressional and administrative oversight of GSA’s pilot e-Commerce Portal program which gives Amazon monopoly power in government procurement.