Congress to Interrogate Amazon and Johnson & Johnson
Jeff Bezos and Amazon are setting new records all the time, but here’s one that’ll draw a double-take from investors. The company spent nearly $5 million lobbying in the second quarter run-up to this year’s election, and for good reason.
The e-commerce giant is being re-accused of monopolizing its market by the political party that looks set to win power. It has about fifty percent of online retail sales. This passes anti-trust sniff tests, but only if you define online retail as a conventional market like selling mattresses or fizzy drinks. It’s not. It’s a sales channel, huge, so huge that Amazon’s 50% presence might be giving it unfair advantages.
The antitrust rules may need tightening, but there’s nothing the tech giants won’t spend to stop a breakup. The market would crater shares if something like that was announced.
Amazon isn’t the only blue chip business being summoned to Capitol Hill. Johnson & Johnson executives faced the brunt of questions about coronavirus vaccines and the speed of development. It assured politicians that FDA approval isn’t easier to get than ever before, but if you deserve because you have a solution, the agency won’t sit on paperwork for too long.
The process of drug development and approval usually takes around ten years. The coronavirus vials are being rushed through, and should be ready by the start of next year.
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.