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How low prices could make for an antitrust case against Amazon

The Verge Monday, 13 May 2019
How low prices could make for an antitrust case against AmazonIn the late 2000s, diapers.com and its parent company Quidsi had built a limited but successful e-commerce business — until Jeff Bezos called them in for a meeting. As reported in Brad Stone’s 2013 book, The Everything Store, Bezos tried to by the company — and when they refused, began rapidly dropping Amazon’s diaper prices, including under a newly launched Amazon Mom product.

The new venture was a disaster for diapers.com. As Quidsi saw it, the only way to sustain those low prices was by selling diapers at a loss, which Quidsi estimated to be as high as $100 million every three months. Quidsi’s customer base plummeted and, after a bidding war with Walmart, the company finally sold out to Amazon. As Stone suggests, the sale was made...
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