Comment by throwaway823882
4 years ago
> Is Amazon too big and a bully?
Is Starbucks too big and a bully? Sure, they force Mom and Pop shops to close by out-competing them, and that sucks. But bullying? I believe that's just Capitalism.
Or say you're 6'6 and weigh 230LBS and you join a football team full of people who are 5'9 and 175lbs. Are you a bully just because you're bigger?
ES basically handed them a platter with a goose laying golden eggs and a sign that read "Free Goose" and hoped they wouldn't try to make money off the eggs.
> Is Starbucks too big and a bully? Sure, they force Mom and Pop shops to close by out-competing them, and that sucks. But bullying? I believe that's just Capitalism.
I'd say it's more like a mom-and-pop coffee shop giving free coffee to patrons hoping to make money on cookies, and Starbucks coming in, taking the free coffee, opening a nice stand right next to the shop and selling the coffee they got for free.
I'm having trouble justifying this ethically.
How is it unethical if ES chose to explicitly allowed it with the license they picked? The analogy would have to include a sign under the free coffee that literally said "Feel free to sell this free coffee for profit!", for it to be accurate.
I don't see how it's unethical if you do something that someone said was perfectly fine to do. "Obvious chosen outcome" comes to my mind long before "unethical".
You could always look at teh Oracle version (wait.. please... ) They started selling consultancy.. the solution was an Oracel DB...
To expand across the world they franchisedit.Th eagreeement was, you take te hfranchise, if yoou hit x target in 4 years, we will pay you y amount (large) ...and take it over.
That worked well. DOnt see any reason why Starbucks, or anyone else could nottake that on board, then everyone is a winner.
If they're giving you free coffee, and you sell the coffee you got for free... where's the harm? Starbucks is giving it away. Why would anyone buy your coffee rather than get it for free from the source?
Now, assuming Starbucks charged you for the coffee, and you then re-sold it, this should also be fine. Starbucks is charging you presumably a rate with which they can recoup their costs. But if they are selling it below cost, they are clearly putting themselves at risk. A lot of businesses take this kind of risk as a strategic part of their business, like with making the coffee free. But you have to do it in a way that a competitor can't turn around to their advantage, or you're screwing yourself.
Enter the concept of "not for resale". If a seller enters into a contract with a buyer, that contract can stipulate that the buyer can't resell the goods. Starbucks could theoretically require you to sign a contract saying you will not resell their coffee. That's pretty standard with licenses, even software licenses.
ES must have known that their license did not forbid reselling. Yet they based their business model on this resellable coffee that they were giving away in order to make money on cookies.
Is it Amazon's fault that ES chose a business model where they were selling coffee at a loss? Does Amazon have an ethical responsibility to keep ES's business afloat? Should we find any business unethical that tries to undercut the customer base of a rival, or take advantage of a rival's shaky business model?
I think you have to come up with a whole framework for ethical competition, because one rule at a time isn't gonna capture it. (But I also think Capitalism is inherently unethical)