> Even though some competing platforms charge much lower fees, if Steve lowers his prices on another shopping site, Amazon’s algorithms punish him
I think in most cases, this "fair-pricing" bot kicks in because a seller has instead inflated prices on Amazon to squeeze more profit from Amazon customers. Amazon thinks that such tactics diminish the value of their marketplace, so they apply this crude heuristic as a way to disincentivize it.
So to answer your question: it's good for you, because if you're shopping on Amazon you can reasonably expect that you're getting good prices (at least in theory). This leads to a virtuous cycle which feeds the beast: people buy more stuff from Amazon, Amazon can operate more efficiently, you get lower prices.
Steve is griping against Amazon, but quite possibly he just has a bad business, and the core of his problem is that he can't compete effectively with other sellers on Amazon. But to him, Amazon seems like the problem because he feels like he's between a rock and a hard place.
But, hypothetical harm aside, Amazon (FBA especially) is currently a really good deal for sellers in terms of shipping costs and access to customers.
Amazon promoting products that Amazon is most likely to sell is NOT "anticompetitive behavior."
Every company seeks to do things to benefit themselves. Do you oppose them all?
Amazon is obviously free to show the best deals on Amazon. That's not at all what this is about, and you know it.
The OP suggested lawmakers should somehow make it illegal for Amazon to offer preferential treatment -- prominently featuring their items -- to suppliers that don't charge less to other retailers. Every store does the exact same thing -- and this is GOOD for consumers. When your supermarket puts Coca-Cola on sale (because Coke paid the supermarket), it brings out extra bottles and places them at the front of the store and makes it easy to buy. Sure you can still buy Pepsi, it's back somewhere on aisle 12 where it always is.
Haha you can't even pretend to have misunderstood the situation to this extent. QED on the bad faith. Amazon DGAF what percentages other retailers get. How would they even know those? They are penalizing suppliers for the prices that consumers pay at other retailers. So long as Amazon are allowed to do this, they'll just keep slowly increasing their cut. What's 34% today will be 40% next year, etc.
Although I made the initial mistake, I'm pretty sure you just piled on with more bullshit. I'm rather confident Amazon has a good read on what its suppliers charge other vendors, just Wal-Mart and Target do in the B&M space, and that they do very much care.