When life imitates comedy: FTC's Amazon Flip Flop

Nobel Laureate Ronald Coase once quipped that he left antitrust because "When prices go up, its monopolization, when prices fall it's predation, and when they stay the same it's collusion." As if to illustrate this idea, the FTC's Chair is reversing herself to bring a case against Amazon.

On one hand, booksellers argue that Amazon uses its clout to obtain and sell books at lower prices, forcing them to cut their own prices [Chair Khan's former position]. On the other, the FTC says Amazon uses its market power to block other businesses from selling at lower prices [Basis of FTC's current position]. (WSJ)

When an Agency with enormous prosecutorial discretion abandons principle, it loses credibility:

The progressive antitrust movement that Khan leads is ideologically incoherent. Progressives believe that the government should break up Amazon simply because it is a big company and will say or do anything to reach their desired goal. The FTC’s and ABA’s arguments, while contradictory, both amount to the legal equivalent of flinging spaghetti at the wall and seeing what sticks. (Nat'l Rev)

There is also a rumor that the FTC might be offering VERA-VSIP (early retirement with an incentive payment), perhaps to rid themselves of the remaining staffers who still care about principle, i.e., protecting competition.  

DISCLAIMER: I have worked at the FTC and done consulting work for Amazon.