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The hidden cost of Ceding Government Procurement to a Monopoly Gatekeeper

http://ilsr.org/article/independent-business/turning-public-money-into-amazons-profits/

Publisher:  Institute for Local Self-Reliance
Date Written:  04/12/2025
Year Published:  2025  
Resource Type:  Article

Amazon has quietly captured a growing share of government purchasing. Based om a close investigation of spending data, pricing, and contract terms, ILSR maintains that Amazon has driven up costs for governments, eliminated transparency, and eroded competition by pushing out better-performing, more accountable independent suppliers.

Abstract: 
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Excerpt:

ILSR has conducted a sweeping investigation that reveals Amazon has quietly become a major force in how cities, counties, and school districts purchase basic supplies — and that its tightening grip is driving up costs, eroding competition, and harming local economies.

Drawing on purchasing records from 128 cities, counties, and school districts serving 51 million Americans, the report — Turning Public Money into Amazon’s Profits: The Hidden Cost of Ceding Government Procurement to a Monopoly Gatekeeper — exposes how Amazon has used its market power, political influence, and opaque pricing algorithms to insert itself into public purchasing systems with little transparency or oversight.

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