This is actually a good point. The policy described in the article doesn't apply in the EU, but it's not like Amazon is cheaper in the EU.

Also, it is common to see in the US competitors with lower prices than Amazon (e.g. I frequently see brand name products on Microcenter cheaper than Amazon), not to mention that it doesn't apply to sites like eBay. So you've got to wonder if it actually has a strong effect on pricing across the internet.