What I don't understand is how this isn't illegal. Every economics class I've taken has described selling at a loss to bankrupt your competition as anti-compeitive and monopolistic behavior. I get that the real world is different and a more nuanced landscape, but I have to admit that I don't understand it, -I was always under the impression that this was against the rules.
They did the same thing with e-books, and it was Apple that got hit with anti-competitive sanctions for advancing a business model that was sustainable. Did it raise prices for consumers? Yes...because Amazon was selling books at a loss...of course it did.Quidsi could now taste its own blood. At one point, Quidsi executives took what they knew about shipping rates, factored in Procter & Gamble’s (PG) wholesale prices, and calculated that Amazon was on track to lose $100 million over three months in the diaper category alone.