The Federal Trade Commission (FTC) has filed an antitrust lawsuit against Amazon, with 17 states joining the federal agency. The lawsuit comes as no surprise, as the FTC had been preparing to take action against the online retailer since late August. According to the FTC, Amazon is accused of engaging in monopolistic practices, such as preventing merchants from offering lower prices on other platforms and forcing them to use Amazon’s logistics service to be part of Prime shipping perks. These practices allegedly resulted in higher prices and an inferior shopping experience. The FTC aims to hold Amazon accountable for these actions and restore fair competition.
This is not the first time the FTC has targeted Amazon. It is the fourth action taken against the company this year. In May, Amazon settled a lawsuit over Alexa children’s privacy concerns for a hefty amount of $30.8 million. In June, the FTC sued the retailer again, claiming that Amazon tricked customers into signing up for Prime subscriptions and made it difficult for them to cancel. The FTC has been keeping a close eye on Amazon for years, and these recent legal actions demonstrate its continued scrutiny of the company.
Amazon responded to the lawsuit, stating that the FTC’s actions are misguided and do not align with protecting consumers and competition. David Zapolsky, Amazon’s Senior Vice President of Global Public Policy and General Counsel, expressed disagreement with the lawsuit and looks forward to making their case in court. The media is likely to paint this lawsuit as a highly anticipated showdown between FTC chair Lina Khan and Amazon, given Khan’s previous work highlighting the shortcomings of US antitrust laws in reigning in tech giants like Amazon.
It is important to note that this story is still developing, and updates may follow as the lawsuit progresses.