You can see this play out in India where most large brick and mortar retailers offer to match the online prices that amazon charges (for most products).
Amazon has the same bully-ish behavior in India through its own sellers. I dealt with one of these - cloudtail - to list our products online. (There are at least two such "preferred" entities). As a pre-requisite for listing, they force you into selling your products to cloudtail at a much deeper discount than any of our other offline sellers get. And if you are "caught" selling the product cheaper than amazon anywhere they will ship all unsold inventory back and charge you a penalty. We eventually chose not to sell on amazon and set up our own online storefront, fulfilled by our existing offline sellers.
Amazon has the same bully-ish behavior in India through its own sellers. I dealt with one of these - cloudtail - to list our products online. (There are at least two such "preferred" entities). As a pre-requisite for listing, they force you into selling your products to cloudtail at a much deeper discount than any of our other offline sellers get. And if you are "caught" selling the product cheaper than amazon anywhere they will ship all unsold inventory back and charge you a penalty. We eventually chose not to sell on amazon and set up our own online storefront, fulfilled by our existing offline sellers.