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Big companies are not bad.
That's at least the point of view of Amazon.com's founder (AMZN), Jeff Bezos, who has fended off fears that the oversized e-commerce company will be dismantled.
"It's really important that politicians and others understand the value that big companies bring and do not demonize them," David Rubenstein, chairman of the Economic Club of Washington and co-founder of the private equity firm told Reuters on Thursday. Carlyle. 1,550 people at the Washington Hilton. "They should not denigrate big companies.The reason is simple: there are some things that only big customers can do.I know what Amazon could do when we were 10, know what we could do when we were 1000 and 10,000 are half a million. "
Bezos' comments follow concerns raised by President Trump and others about Amazon's size and ownership in The Washington Post. In April, the Deputy Attorney General of the Ministry of Justice, Makan Delrahim, suggested that the virtual wizards "search by voice" proposed by Amazon, Alexa, constituted an antitrust problem. Delrahim said "once you ask Alexa, where is the nearest pizzeria?" Alexa will only give you one. It will not send you ten pages with 100 search results. "He was wondering if they would run [customers] to their own product and if they did, would it be an antitrust issue.
Others have expressed concerns about the size and impact of Amazon on the competition. The activist investor Nelson Peltz, of Trian Fund Management, said earlier this year that Amazon's Alexa would only offer Amazon batteries until Scott Galloway, Professor of Marketing at the Stern School of Business at New York University, raises the issue in an article. Others have expressed concern over the impact of Amazon on Diapers.com, before the company is acquired and subsequently stopped by the e-commerce giant. Mr. Peltz also said he thought that at some point the government would step in and do something about Amazon's size. "I'm afraid they're controlling prices," said Peltz. "Amazon bothers me."
Bezos said that Amazon could handle all possible regulations. "Governments should be inspected, large educational institutions, large non-profit organizations and big business should be controlled," he said. "It is not personal, it is what we want as a society.Whatever regulations are promulgated, it is normal, it is healthy, it is we want to live in a society where big institutions are worried ".
He added that any regulation will not prevent Amazon from serving its customers. "In all regulatory frameworks, I can imagine that customers will always want low prices, they will always want fast delivery, great selections, these things are so fundamental, these are the things we do," added Bezos.
Beyond the size of Amazon, Trump criticized the Washington Post's takeover of Amazon, arguing that it acted as a "lobbyist" for the company. However, Bezos also rebuffed critics, arguing that it is dangerous to demonize the media. "It is dangerous to say that the media is the enemy of the people," Bezos said. "It's a mistake for anyone elected to attack the media, I do not think there's a public figure who liked their titles, that's okay, it's part of the process, you do not take that. work, thinking you will not do it. " be scrutinized, you will be scrutinized, it is healthy. "
Bezos' comments followed a heightened speculation that Amazon could choose Washington DC to install its second headquarters – it is based in Seattle. Bezos announced that he was going to announce his decision before the end of the year. "The team is doing like that," Bezos told the audience, hoping for a CD destination.
The Seattle Times reported Wednesday that board members joined Bezos during his trip to Washington, suggesting that the company is considering the city and considering it. According to a report by CBRE, behind San Francisco and Seattle, the region is the third best region in the United States for technological talent.
In January, Amazon reduced the list to 20 US sites plus Toronto, Canada. Of these 20, three were near Washington: in addition to the district itself, Northern Virginia and Montgomery County, Maryland, were on the list.
The event took place inside the Washington Hilton, where well-dressed participants ate dinner, unlike a dozen protesters outside, who waved various placards, including one with pictures of an octopus in Bezos and another abolish the rich. "Rubenstein hinted at the contrast, asking, ironically, how many people at the event arrived by subway." One or two? "He asked with a laugh. He also suggested that many spectators attend. also at the annual White House Correspondents Dinner.
Bezos, the richest man in the world, with a net worth of $ 150 billion, is under pressure to be more charitable. Amazon has a market capitalization of about $ 971 billion, making it the second largest company in the world behind Apple AAPL.
In response to concerns, Bezos on Thursday launched the "Day One Fund", with a commitment of $ 2 billion, set up to help homeless families and create kindergartens. The fund will provide capital to existing non-profit organizations that help homeless families and also create a "network of new, non-profit, first-stage nursery schools in low-income communities."
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