The United States Federal Trade Commission (FTC) has filed an antitrust lawsuit against Amazon, alleging that the online retail giant’s actions have harmed consumers by stifling competition. The lawsuit, joined by 17 state attorneys general and filed in Washington state, where Amazon is headquartered, follows a four-year investigation.
The FTC and its state partners accuse Amazon of actions that allow it to prevent rivals and sellers from lowering prices, degrade quality for shoppers, overcharge sellers, stifle innovation, and prevent fair competition against Amazon. In particular, the FTC alleges that Amazon has engaged in unfair tactics to “illegally maintain its monopoly power” in the online retail industry.
The FTC accuses Amazon of punishing sellers who offer lower prices elsewhere by burying them in search results, making them effectively invisible. Amazon is also accused of forcing sellers to use its warehouses and delivery services, increasing costs for both consumers and sellers.
In response, Amazon has called the FTC’s claims “wrong on the facts and the law” and accused the federal agency of overreach. Amazon argues that its practices have fostered competition and innovation in the retail industry, resulting in greater selection, lower prices, and faster delivery for customers.
The FTC’s lawsuit against Amazon follows similar federal antitrust lawsuits against Google’s parent company Alphabet and Meta, the parent company of Facebook. The Biden administration is seeking to rein in what it perceives as the monopolistic practices of big-tech companies.
While FTC Chair Lina Khan did not discuss the possibility of breaking up Amazon, she emphasized that the focus of the lawsuit is currently on liability. Khan has been a vocal critic of tech giants like Amazon and was involved in a 2020 report advocating for more stringent regulation of major tech companies.
This lawsuit is part of the FTC’s ongoing efforts to address Amazon’s business practices. In June, the agency sued Amazon for allegedly using deceptive tactics to enroll consumers in Amazon Prime and making it difficult for them to cancel subscriptions. Amazon denied the allegations, and the FTC is seeking a permanent injunction against Amazon’s alleged unlawful conduct.
