It is interesting how in two comments we have encompased what are the two greatest flaws of practical governments and free markets.
In my oppinion this is a failure of competing merchants as they are sleeping and do not see writing on the wall. Instead of adapting they look up to the regulators to save their comfortable industries. Which in itself is a flaw of the modern western socioeconomic situation.
IMHO its a fact that Amazon is constantly maneouvering towards a situation where it becomes dangerous due to its modus operandi.
To be safe from Amazon threat, producers will have to find access to markets in a fashion that will prevent them from over exposing themselves to Amazon.
And any good regulation should be about lowering barrier to entry towards would be Amazon competitors.
I am certain that eventually producers will have to cut out the middleman (Amazon) or vice versa.