The Federal Trade Commission (FTC) and 17 state attorneys general have filed a lawsuit against Amazon.com, Inc., accusing the company of maintaining an illegal monopoly and engaging in anticompetitive practices. The lawsuit alleges that Amazon uses exclusionary tactics to stifle competition and harm consumers and businesses.
According to the FTC, Amazon's conduct has far-reaching implications, impacting billions of dollars in retail sales and over a hundred million consumers. Among the alleged anticompetitive practices, the FTC cites Amazon's anti-discounting measures, which penalize sellers for offering lower prices elsewhere, and its requirements for sellers to use its costly fulfillment service for "Prime" eligibility.
"Our complaint lays out how Amazon has used a set of punitive and coercive tactics to unlawfully maintain its monopolies," said FTC Chair Lina M. Khan. "Today's lawsuit seeks to hold Amazon to account for these monopolistic practices and restore the lost promise of free and fair competition."
John Newman, Deputy Director of the FTC’s Bureau of Competition, added, "Amazon's conduct has far-reaching implications. It uses its power to hike prices and charge exorbitant fees, affecting a broad spectrum of the online economy."
The FTC and the 17 state attorneys general are seeking a permanent injunction to halt Amazon's alleged illegal activities and restore competition in the online market. The lawsuit has the support of seventeen states, including New York and California.
This lawsuit against Amazon is part of a broader effort by regulators to address the growing concerns over the power and influence of big tech companies. The outcome of this case could have significant implications for the future of online retail and competition in the digital marketplace.
