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9 challenges Amazon faces on its 25th birthday

08 Jul 19
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By Jordan Valinsky


New York (CNN Business)As Amazon marks its 25th year, the groundbreaking company is dealing with a host of controversy and problems. High-powered officials are challenging its size and calling for it to be broken up. Politicians are raising questions about its worker pay. And Amazon faces growing competition from rivals. The Seattle-based company, whose dominance now reaches around the world, could be facing a quarter-life crisis.

Elizabeth Warren calls for a breakup

Senator Elizabeth Warren doesn’t like what she sees in Big Tech. The Democratic presidential candidate released a plan to break up giant companies like Amazon(AMZN). She wants to impose new rules on certain kinds of tech companies that have $25 billion or more in annual revenue, and unwind some high-profile mergers such as Amazon’s $13.7 billion purchase of Whole Foods.
“Today’s big tech companies have too much power — too much power over our economy, our society, and our democracy. They’ve bulldozed competition, used our private information for profit, and tilted the playing field against everyone else. And in the process, they have hurt small businesses and stifled innovation,” Warren wrote in a Medium blog post published in March.

AOC slams Jeff Bezos’ pay

Rep. Alexandria Ocasio-Cortez has slammed Amazon CEO Bezos for being a billionaire while his company pays its warehouse workers what she called “starvation wages.”
She recently said in an interview with ABC News that the company’s low worker pay has helped make Bezos the world’s richest person.
In a response to the New York Democrat, Amazon said she is “just wrong.” The company says it pays a $15 minimum wage and offers full benefits to employees in their first days on the job. It also noted that it has lobbied to raise the federal minimum wage.
Senator Bernie Sanders has also made similar arguments against Amazon’sworker pay.

Biden questions Amazon’s taxes

Joe Biden knocked Amazon over the amount of corporate taxes it pays.
“I have nothing against Amazon, but no company pulling in billions of dollars of profits should pay a lower tax rate than firefighters and teachers. We need to reward work, not just wealth,” he said on Twitter. The tweet from the former vice president and Democratic presidential hopeful referenced a corporate tax rebate that Amazon received in 2018.
Amazon responded, saying in a tweet that the company pays “every penny we owe.” It added: “Congress designed tax laws to encourage companies to reinvest in the American economy. We have $200B in investments since 2011 & 300K US jobs. Assume VP Biden’s complaint is w/ the tax code, not Amazon.”

Trump investigates post office deal

Amazon isn’t getting much reprieve from the Trump administration, thanks to the president’s beef with Amazon founder and CEO Jeff Bezos as well as the United States Postal Service.
Last year, Trump ordered a federal task force to investigate the Postal Service’s finances because he thinks Amazon takes advantage of the agency. At the root of all this drama is likely Bezos’ ownership of The Washington Post, which has published stories that are unfavorable of to Trump throughout his presidency.
Amazon has a confidential agreement with the Postal Service under which the agency delivers a large number of packages directly to the post office closest to their destination. The Postal Service then delivers the packages to customers.

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