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Economy

What Europe Gets All Wrong About Amazon

As the European Commission targets U.S. retail giant Amazon for alleged antitrust violations, David Barroux in French business daily Les Echos offers his own take.

Jeff Bezos' company offers an easy target
Jeff Bezos' company offers an easy target
David Barroux

Wouldn't it be better if Amazon didn't exist? At a time when Brussels is targeting the e-commerce giant for abusing its dominant market position, and when small retailers are demanding that the activity of this frightful American player be drastically restricted as long as their own shops remain shut by the second lockdown, Jeff Bezos' company offers an easy target.

However, we should not accuse Amazon of all evils. Like everyone else, the Seattle giant deserves to be prosecuted and convicted if it breaks the law. On the fiscal, social or commercial front, there is no reason to tolerate a company that evades taxes, plays around with the Labor Code, and practices a particular kind of unfair competition. There is a need for faster and tougher enforcement of existing laws. And, when we are faced with the emergence of a new player in the market, we should not be afraid to change the rules of the game.

Perhaps it would be better to prohibit delivery with losses, or cross-subsidization between the different business activities that make Amazon a competitor that is often impossible to counter. Maybe we could change our tax system to put more tax on e-commerce and less on physical commerce. Or we could establish a pan-European regulator to better monitor how Big Tech uses the billions of personal data they accumulate and to create new entry barriers into the digital world.

At a bookshop in Paris — Photo: Michelle Ziling Ou

But all this should not lead us to forget that Amazon has also strengthened the competition. The group has made customer service an art. It has never stopped innovating. After all, even if it dominates e-commerce, it is only one player among others in a market segment that is far from representing the bulk of the retail trade.

In particular, beyond the current health situation, we must acknowledge that if our small businesses are suffering, it is primarily due to the growth of hypermarkets and specialty chains. It's because our city centers are no longer car-friendly and are pushing away commuters. It's because our State, which feeds on taxes and levies, is constantly punishing all economic activities, preferring to levy more than to reduce its own costs.

We won't save the post office by banning e-shopping, we won't save the train by banning planes, we won't save the DVD by banning Netflix. We certainly won't be able to save our independent retailers by banning Amazon from taking orders when the stores are closed. We must punish Amazon when it breaks the law, not when it's just doing its job.

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Green

The Unsustainable Future Of Fish Farming — On Vivid Display In Turkish Waters

Currently, 60% of Turkey's fish currently comes from cultivation, also known as fish farming, compared to just 10% two decades ago. The short-sightedness of this shift risks eliminating fishing output from both the farms and the open seas along Turkey's 5,200 miles of coastline.

Photograph of two fishermen throwing a net into the Tigris river in Turkey.

Traditional fishermen on the Tigris river, Turkey.

Dûrzan Cîrano/Wikimeidia
İrfan Donat

ISTANBUL — Turkey's annual fish production includes 515,000 tons from cultivation and 335,000 tons came from fishing in open waters. In other words, 60% of Turkey's fish currently comes from cultivation, also known as fish farming.

It's a radical shift from just 20 years ago when some 600,000 tons, or 90% of the total output, came from fishing. Now, researchers are warning the current system dominated by fish farming is ultimately unsustainable in the country with 8,333 kilometers (5,177 miles) long.

Professor Mustafa Sarı from the Maritime Studies Faculty of Bandırma 17 Eylül University believes urgent action is needed: “Why were we getting 600,000 tons of fish from the seas in the 2000’s and only 300,000 now? Where did the other 300,000 tons of fish go?”

Professor Sarı is challenging the argument from certain sectors of the industry that cultivation is the more sustainable approach. “Now we are feeding the fish that we cultivate at the farms with the fish that we catch from nature," he explained. "The fish types that we cultivate at the farms are sea bass, sea bram, trout and salmon, which are fed with artificial feed produced at fish-feed factories. All of these fish-feeds must have a significant amount of fish flour and fish oil in them.”

That fish flour and fish oil inevitably must come from the sea. "We have to get them from natural sources. We need to catch 5.7 kilogram of fish from the seas in order to cultivate a sea bream of 1 kg," Sarı said. "Therefore, we are feeding the fish to the fish. We cannot cultivate fish at the farms if the fish in nature becomes extinct. The natural fish need to be protected. The consequences would be severe if the current policy is continued.”

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