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AMAZON: How Far Does "For the Sake of the Customer" Go?
Wednesday, Jun. 4, 2014
Source: Natalia Romay
The highly publicized battle between Amazon and major book publisher, Hachette, has reached a boiling point this week. Unable to come to an agreement on terms on e-book pricing, Amazon, the largest retailer of books, has resorted to strong-arm tactics to break the stalemate. Hachette titles are currently not available for advance order, often take over 2 weeks to be shipped, and in some instances have been removed from Amazon entirely. Hachette has dug in its heels, accusing Amazon of “preventing its customers from connecting with their authors’ books,” and in effect, undermining the marketplace of ideas. Many also see this as an antitrust issue, due to the immense power that Amazon has in the publishing industry. Amazon, in a rare press release, argued: “When we negotiate with suppliers, we are doing so on behalf of customers,” and even suggested customers purchase Hachette titles from one of their competitors — Walmart is offering Hachette titles at a 40% discount. Is Amazon hurting or helping customers with these tactics? Is there an ethical significance to the product in question being books?
Patrick: This is what happens when major industry players don’t adapt to changing conditions. The major publishers failed to respond to the move to online book sales — Amazon did — now they have to play ball with Amazon. The anti-trust red flags are premature: the ready availability of Hachette books at Walmart, at a discount, is evidence of this. Hachette has leverage here too: they can pull their books from Amazon entirely. But given Amazon’s importance to their business, they won’t, and that’s yet another reason for them to reach across the aisle here.
Kirk: While I buy all my books from Amazon, this is not yet an anti-trust issue. For now, it does not appear that access to these books has been limited outright, but it is still a potential problem for the future. Presumably, customers stand to gain from Amazon’s tactics as they will most certainly lead to lower prices, but there are also concerns. We must always be careful when we subject things we value, in this case books and their production, to market pressure. “For the good of the customer” justifies bargaining, but not shameless opportunism. The book publishing industry will continue to evolve, which is a good thing, provided it doesn’t collapse upon itself.
Amazon Absorbing Price Fight Punches (NY Times)
Hachette Press Release (Hachette)
A Framework for Ethical Thinking (Markkula Center)
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