Essay Example on Amazon's Expansion: Government Regulations & Challenges

Amazon has maintained a brand name and consistent growth in online retail; it is the leading online retailer in the market. Amazon's growth and development is determined by the level of expansion into new markets across the globe. Like any other business, the government plays an essential role in regulation and providing policies to control business operations. Based on how amazon operates in the market, some of the government regulations pose a critical challenge (Campbell, 2017). One of the most crucial issues associated with government regulations is venturing into new territories across the border. Some countries have different policies governing e-commerce, which makes it hard for the company to adjust and realize the benefits of entering these markets and determine the price for products and services. This paper, therefore, discusses how government regulations affect the market structure of amazon and the way it operates.

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Amazon has become a key concern by the government, there are several regulations that the government has developed to control e-commerce, and some of them negatively growth and development if the company (Campbell, 2017). The government has been involved in antitrust scrutiny against the company following the use of digital data to gain a competitive advantage. As a result, the government has established and made amendments to some of the laws, such as the Federal Trade Commission (FTC) impose excessive limitations on the use of digital data to manage market structure.

The company is concerned with data privacy policies; however, the government has raised more concerns about the tech industry while putting more pressure on privacy and data protection. Some of the policies put in place do not only address the issues but also discourage how the company works. Increased scrutiny by the government is increasing, policies governing sales, data operations delivery, and transactions are emerging to be a more significant challenge influencing pricing (Gaus, 2019). Amazon's operation in the market has influenced discouraging government policies from different form countries following its expansion and the competitive advantage that it enjoys on most of the markets.

European competition law has also criticized the company; most of the government organizations identify the company with over-competition issues, which the company has worked so hard to achieve a competitive advantage in the global market (Gaus, 2019). E-commerce legal laws provide team and conditions that control online transactions; some of these policies adversely influence the company's business operations. Intense restrictions and heavy taxation have been established by the governments to regulate online retail business as a result of this move; the company is facing a series of financial and legal issues. EU and other states such as France have established new rules and regulations to control the tech industry as well as raise in taxation efforts.

Venturing into the new market from other countries in different contents such as Asia and Africa has posed several legal concerns. Different states have different policies governing e-commerce. The process of attaining licenses and permits to operate in some of these territories is challenging. Different governments have imposed fines on amazon following excessive government regulations (Campbell, 2017). The UK, for instance, imposed fine on the company following commercial relations with the suppliers in the country. In Italy, the company faced intense scrutiny by the government following tax regulations issues. Consisted increase in taxes is, therefore, one of the main challenges facing the company in different countries that affects pricing.

Conclusion

Conclusively, Amazon is facing a lot of challenges with government policies across the globe. Some of the policies established by different governments pose intense scrutiny. Dealing with excessive government regulations has been a big challenge facing the company; they discourage the growth and development of the company as well as the pricing of goods and services.

References

Campbell, C. (2017). Amazon Is Facing Legal Challenges in Europe. Available at https://www.foodinstitute.com/focus/amazon-facing-legal-challenges-europe

Gaus, A. (2019). Amazon's 5 Biggest Challenges in 2019. Available at: https://www.thestreet.com/technology/amazon-key-challenges-for-2019-14825146