Amazon Just Became the World's Largest Company by Sales

Amazon — launched by Jeff Bezos in 1995 out of a rented garage as an online bookstore — overtook Walmart earlier this year to become the largest company in the world by annual sales, according to BBC News.

One company. Books to cloud computing. And no serious Western rival in sight.

So why not? And why does the answer matter?

The Real Reason Amazon Has No Rivals

Amazon spent three decades reinvesting profits instead of taking them. While other retailers protected their margins, Amazon built warehouses, logistics networks, a streaming service, a grocery chain (Whole Foods), Kindle hardware, and — most critically — Amazon Web Services, its cloud-computing division that now subsidizes the entire retail operation.

AWS is the profit engine. E-commerce is the moat. That combination is nearly impossible to replicate from scratch.

Walmart and Target both have expanding online retail arms and Prime-style subscription services, according to BBC News. In the UK, Tesco leads online groceries. Germany has Zalando for clothing. eBay exists — with its auction-and-secondhand model that is fundamentally different from Amazon's.

None of them are Amazon. Not close.

The Chinese Wildcard Nobody Wants to Talk About

The most aggressive challengers to Amazon right now are Chinese.

Temu and Shein are hammering the ultra-cheap end of the market. Alibaba — with platforms including Taobao, Tmall, and AliExpress — controls 23% of the global e-commerce market and posted $940 billion in turnover in 2023, including $75.5 billion from online sales alone, according to Self Employed's market analysis. Pinduoduo is growing fast with a group-buying model that has no American equivalent.

These aren't fringe players. They're state-linked or state-adjacent Chinese companies eating into Western market share while American regulators spend their energy suing Amazon.

The FTC's Antitrust Case — And Why the Market Definition Is Everything

The Federal Trade Commission under its previous leadership sued Amazon for antitrust violations. The case is now in front of Judge John Chun of the Western District of Washington, who on March 7, 2025 held an "Economics Day" hearing where both sides presented their economic arguments, according to Chamber of Progress analyst Kaitlyn Harger.

The FTC's entire case rests on a specific market definition: the "online superstore market." That means retailers offering broad product categories, multiple price points, 24/7 availability, and a seamless online experience. Under that definition, Amazon's primary competitors are Walmart, Target, and eBay.

Three companies. That's it.

Twenty-Two Companies Say the FTC Is Wrong

Harger analyzed hundreds of corporate 10-K annual filings — the legally certified documents that public companies must submit to the SEC — and found 22 companies that explicitly list Amazon as a direct retail competitor in their own risk disclosures.

10-K statements are not marketing fluff. CEOs and CFOs must personally certify their accuracy. Making false or misleading statements in a 10-K can result in civil penalties, fines, and suspension from stock exchanges.

These companies told federal regulators, under oath and penalty of law, that Amazon is their competitor. The FTC chose to ignore that.

The FTC drew a narrow circle around the market — then pointed at the circle and said "see, monopoly."

What Mainstream Media Is Getting Wrong

BBC News asks "why does Amazon have no Western rivals?" as if it's a scandal requiring government intervention.

Amazon has no Western rivals because it executed better than everyone else for thirty years. Bezos made long-term bets that Wall Street hated and competitors laughed at. He was right. They were wrong.

Is there a legitimate antitrust question here? Possibly — specifically around whether Amazon punishes third-party sellers who find cheaper prices elsewhere, or whether AWS gives Amazon unfair advantages. Those are real questions worth examining.

But the FTC's strategy of drawing the market so narrowly that competition disappears by definition is not serious antitrust enforcement. It's bureaucratic theater with enormous consequences for the most successful American company of the last generation.

Meanwhile, Alibaba is taking 23% of global e-commerce. The Chinese government backs its tech champions. Ours sues theirs.

What This Means for You

If the FTC wins on its current market definition, the precedent is dangerous: government agencies can define markets however they like to achieve a predetermined outcome. That's a weapon that will be used again, against other companies, by future administrations of both parties.

If Amazon's dominance genuinely harms consumers through higher prices or suppressed competition, evidence should bear that out.

And while Washington fights Amazon in court, Temu is on your phone and Alibaba is shipping to your door.

Priorities.