Amazon Prime Faces Major Changes Under New Bills
Two bills, the 'American Innovation and Choice Online Act' (AICOA) and its House counterpart (ACIOA), aim to regulate leading tech companies. These bills could significantly alter Amazon Prime Video as we know it, impacting both consumers and sellers.
The bills target three key Amazon Prime Video features: self-preferencing, preferential status based on service purchases, and curated customer recommendations. A ban on self-preferencing would remove Prime badges from eligible offers, hindering customers' ability to find Prime Video delivery options. Prohibiting preferential status could lead to third-party sellers losing Prime eligibility or failing to meet two-day delivery promises with alternative services. The only way Amazon might avoid ending two-day shipping is by removing all third-party sellers and selling only Amazon products through FBA, essentially dismantling Amazon Prime Video.
The bills' regulations target only American firms with a large user base, excluding brick-and-mortar retailers and foreign tech rivals. They also prohibit using ranking to favor one business user over another, preventing Amazon from highlighting Prime offers or considering Prime eligibility in recommendations. These bills could have serious consequences for consumers, including the dissolution of Amazon Prime Video. They also nullify Fulfilled By Amazon (FBA) or require Amazon to provide it to all sellers at cost, eliminating a service valued by both consumers and sellers. AICOA does not require proof of actual harm, making even trivial violations subject to significant penalties and increased litigation.
The AICOA and ACIOA bills, if passed, would significantly reshape Amazon Prime Video, impacting both consumers and sellers. They target specific activities that enable Prime Video, potentially leading to its dissolution or significant changes in its current form.
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