It's a little bit different though, because Amazon has 2 streams of how they get products: Amazon can buy branded from vendor and control price and selection, or those same vendors could list directly on Amazon (as FBA) and the vendor controls price and selection.
Pop sockets got in a fight recently with Amazon, because they wanted to stay FBA in order to have better control of selection and pricing, but Amazon was trying to force them into a more traditional vendor role.
Right, and Walmart only allows products in its store under their terms which is far more restrictive, so I'm failing to understand how this model is worse for competition than Walmart's.
And what happened with PopSockets didn't quite work that way. They were already a vendor on Amazon, and they wanted to remove themselves as a direct vendor and designate a single reseller as their "approved" FBA on Amazon.
So they wanted to change the terms of the agreement, Amazon said no, and that was that.
Pop sockets got in a fight recently with Amazon, because they wanted to stay FBA in order to have better control of selection and pricing, but Amazon was trying to force them into a more traditional vendor role.