You work as the special economic advisor for the Minister for Economic Affairs of your country.

Your minister has just read an article in the FT about the amazing growth and success of Amazon and other internet giants such as Google and Facebook. The Minister is
worried that these companies will become so powerful that they could become obstacles to free and competitive markets in your country. The Minister has asked you to
read the FT articleand to set up a meeting with the head of the competition authority of your country to discuss what can be done about the growing power of these
internet giants. The head of the competition authority has a PhD from Harvard and your Minister is somewhat scarred by the prospect of meeting her. He therefore needs your help to
prepare for the meeting. In particular he would like to get a briefing note from for this meeting. In particular you should address the following questions in your
memo: a. Amazon despite its substantial market share in online transactions does not seem to charge monopoly prices at the moment and has in fact driven down the cost
of online shopping in many areas. Does this mean that there is no potential anti‐competitive threat? 
b. Does Amazon have the characteristics of a natural monopoly? What are the likely sources of its amazing growth? 
c. Briefly assess two policy options: (a) breaking up Amazon into different businesses (b) regulating the prices at which competitors can access some of Amazon’s
services such as distribution. 
d. How successful might your country be acting on its down in dealing with Amazon?