The lawsuit targeting Amazon is twofold and builds on the government’s crackdown on the market power of powerful tech companies.
The partially redacted 172-page complaint alleges the e-commerce giant’s practices are anti-competitive in how they affect shoppers and third-party sellers on the site.
The government alleges that Amazon uses anti-competitive measures that punish sellers and deter other online retailers from offering lower prices, which keeps prices higher for consumers across the internet.
FTC Chairwoman Lina Khan called it a “one, two punch” that has “internet-wide effects” for consumers and sellers.
“Amazon is a monopolist. It exploits its monopolies in ways that enrich Amazon but harm its customers: both the tens of millions of American households who regularly shop on Amazon’s online superstore and the hundreds of thousands of businesses who rely on Amazon to reach them,” the complaint states.
Amazon pushed back on the allegations.
David Zapolsky, Amazon senior vice president of global policy and general counsel, said in a statement that the lawsuit is “wrong on the facts and the law, and we look forward to making that case in court.”
“The practices the FTC is challenging have helped to spur competition and innovation across the retail industry, and have produced greater selection, lower prices, and faster delivery speeds for Amazon customers and greater opportunity for the many businesses that sell in Amazon’s store,” Zapolsky said.
Read more about the lawsuit in a full report at TheHill.com.
