The proposed Senate legislation, The American Innovation And Online Choice Act, popularly known as S.2992, has elicited mixed reactions from the big tech companies themselves, legislators, sellers, and consumers alike.

Amazon has particularly been very vocal in its opposition to this bill to the extent of running ads claiming that this proposed legislation will kill Prime as we know it.

Their CEO, Andy Jassy, was recently interviewed at the Code 2022 Conference, where he made some incorrect statements regarding the impact of this legislation on Amazon and on sellers on its platform.

He continues to claim that this bill unfairly targets Amazon, who he claims to be a small player in the retail space.

In this episode, I provide some counterpoints to Andy’s comments and give my own insight on this bill based on my 20-year experience as a seller and 10 years of experience supporting sellers.


The Background to this Bill

Big Tech companies have amassed a lot of economic power over the last decades and become dominant players. Unlike any other industry, there is little to no regulation to check their power and anti-competitive and self-preferencing behavior.

There exists a real gap to rein on these platforms to protect consumers and, in Amazon’s case, the hundred of thousands of sellers who are responsible for their profits. In the absence of the remedies provided for in this bill, Amazon will continue to squeeze sellers and stifle any innovation they perceive to be a threat to their business.

This cannot be good for our country, as history has shown what happens when such companies become dominant and eventually turn into monopolies.

Why Andy Jassy and Amazon are Wrong about this Bill

Andy Jassy made many claims that, from my experience, seem to be incorrect. The biggest claim they make to instill fear among consumers is that the bill will kill or degrade Prime Delivery as we know it today. Reading through the bill, there is nothing in there that supports this claim.

Andy also claims that the penalties proposed in the bill will risk their business model, their employees, and all the small businesses that depend on their platform. This is an absurd claim because it appears they intend to violate the provisions of this bill if it passes into law, otherwise, they wouldn’t need to worry about the penalties.

These are not the only claims that Andy Jassy makes that are wrong. I discuss many more in the episode and what this bill means for sellers.

Tune in!

Additional Resources…

– Check out the full Andy Jassy Interview here


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