This is the reason why Microsoft and Google have both been investigated for anti-competitive behavior even though neither one of them was a monopoly.
The Sherman Act prohibits using a dominant position in one area as leverage to exclude competitors in the same or different area.
In other words, a dominant player has to play (more than) fair in any new markets.
I say "more than" because if Amazon was not so dominate in ecommerce this behavior would be perfectly fine.
An antitrust "monopoly" is defined by market/pricing power. I wouldn't be all that confident that Amazon's online retail operation wouldn't be found to have such power.
Using one's market dominance in one field in order to defeat competitors in another field is also sometimes considered anti-competitive, though of course subject to a lot of considerations (e.g., how big your dominance is and what the behavior is specifically).
This is precisely how MS got nailed in the 90s - they were using their dominance of OSes to spread IE and prevent the spread of competing browsers (well, Netscape at the time).
Amazon isn't quite a monopoly like MS was in the 90s, but they're large enough that maybe it matters.
Generally speaking, you are being anticompetitive if you're strong-arming the competition out of the market as opposed to challenging them based on the relative quality of your product. But at what point exactly it becomes illegal I wouldn't know.
Whether it seems that way to the FTC or to a lawyer who understands the relevant laws is another question.
You would _think_ Amazon would run this by their lawyers first.... and do it only if their lawyers thought they could get away with it? I dunno.
To name another example of "kinda maybe I'm not sure"-legality. Supermarket home-brands. I remember a few years a go here in the Netherlands there was a price war going on between supermarkets and the producers were caught in the middle, and as a result of ever-dropping prices they did start to complain that it was anti-competitive to allow supermarkets to also be producers as in an ideal market it would be impossible for the producers to offer the same price-point for the same products. I don't believe it went anywhere, but I do feel they kinda have a point. Although I wouldn't be for banning supermarkets from having their own brand (not that it would really be possible anyway, given modern corporate structures).
Their claim of customer confusion would have been bunk because their fire phone used to support prime on chromecast. Now that the fire phone is no longer being produced, they can say that prime is not available on chromecast and it's "confusing" for customers.
At least, I think that's how their lawyers probably green lighted it, seeing as their the online retail market leader.
I don't necessarily think this is anticompetitive on the part of Amazon, either. I DO think it's a cheap shot, and alienates me as a decade-long customer of Amazon.
> Since June 19, 2000, Amazon's logotype has featured a curved arrow leading from A to Z, representing that the company carries every product from A to Z, with the arrow shaped like a smile.
I'll bet that this decision will be either quickly reversed, if not, they can expect retaliation from Google/Apple in the form of lawsuits and/or their own versions of this rule.