Is former No 10 tech guru Rohan Silva right that competition authorities should investigate Amazon’s book market dominance?
Tim Worstall, senior fellow of the Adam Smith Institute, says No.
Congratulations to Rohan Silva for finding a way to get his new bookshop into the newspapers. But other than that there’s nothing to his complaint that Amazon is becoming “too dominant” in the books market. His complaints are about publishers and bookshops. Adam Smith said the sole purpose of production is consumption. Frederic Bastiat added we must look at all economic questions from the point of view of consumption. Thus the only lens we should look at Amazon through is that of readers and buyers. Has the company made book buying cheaper and more convenient? Yes, yes, it has. That is the end of the matter then.
There is a little more though.