Amazon isn't -- and likely never will be -- a monopoly

[Commentary] Pricing was the basis of the Justice Department's actions in 2012 against the major book publishers and Apple, who hated the fact that Amazon sold new e-book titles for less than $10, believing that Amazon was getting customers used to a price that could not sustain publishers' business models.

The publishers colluded with Apple to force a model on e-book sellers where the publisher set prices for books and retailers simply took a commission. The latest tussle with Hachette is likely an extension of this battle, in which Amazon is fighting to regain its ability to dictate prices. If this is, in fact, the case, then it's highly unlikely that Amazon is up to anything illegal.

Antitrust courts since the 1970s have consistently held that it's not illegal for a company to hold huge market share like Amazon does or even to use that market share as a tool in negotiations with suppliers, as long as they aren't using that power to raise prices for the end consumer. Absent this doctrine, it's easy to see how uncompetitive companies could turn to the government for shelter against competition from highly successful firms like Amazon.

Instead of innovating, these companies could rely on the Justice Department to prevent their competitors from becoming too powerful.