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That's not anticompetitive though, it's purely competitive. Amazon has better underlying economics (because it has deployed capital to build infrastructure) and therefore is able to offer the same service at a lower price.



Not saying this is the case. But there is such a thing as a vertical monopoly. Anticompetitive and illegal.

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It's very hard to imagine a situation in which Amazon could lock new entrants out of the video encoding market. All you need to enter this market are a fast connection and a server farm, both of which you can get for yourself or rent from numerous IaaS providers.

Amazon might very well have a price advantage, but other parties that can offer better quality of service or better L10n or whatever will still attract customers. This is how markets are "supposed" to work.

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It would be shady if Amazon set their prices for video encoding below the price of raw EC2, because then competitors would be in trouble. But they haven't done that.

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Why (on Earth) would it be shady?!

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