Amazon Almost Makes it Out of FTC's Actions on Alleged Preservation of Illegal Monopolies
For allegedly preserving illegal monopolies, Amazon.com.Inc., almost made it out from the Federal Trade Commission's action, though the specifics of the decision by a federal court in Seattle.
The e-commerce giant is being accused by the FTC of employing anti-competitive strategies to preserve its dominance over online marketplaces and superstores. In December, Amazon requested that the case be dismissed by US District Judge John Chun on the grounds that the FTC had not presented any proof of customer injury.
The FTC claimed last year that Amazon.com, an online superstore with one billion items, was employing an algorithm to raise the prices that American households had to pay by more than $1 billion. According to court documents, Amazon ceased to use the program in 2019.
Chun partially granted Amazon's motion in a sealed decision. According to court documents, the FTC will be permitted to pursue any claims that the judge did not permanently reject.
Additionally, Chun rejected Amazon's request that the FTC provide proof of the claimed violations and its suggested remedies at the same trial, ruling that the case would be heard in two phases.
The FTC asserted in its case from the previous year that Amazon suppresses competition by pressuring businesses to use its fulfillment and advertising services.
In its move to have the case dismissed, Amazon said that its price-matching and Prime shipping policies help customers and are an indication of its competitiveness against thousands of physical and virtual competitors.
The e-commerce giant is being accused by the FTC of employing anti-competitive strategies to preserve its dominance over online marketplaces and superstores.
Apple and Meta Platforms, the company that owns Facebook, are also being sued. Alphabet's Google is also involved in two lawsuits, one of which was determined by a judge to have illegally prevented internet search engine competition.
For FTC Chair Lina Khan, who has long pushed to question the authority of the massive online store, the case of Amazon.com is significant. Khan authored a significant scholarly study in 2017 contending that the business's policies and organizational structure raised anticompetitive issues and had evaded antitrust investigation.