US government and 17 states sue Amazon in landmark monopoly case
By Brian Fung, Sep. 26, 20231/3. Remember Google lost the other day, there is movement anons.
The US government and 17 statesare suing Amazon in a landmark monopoly case reflecting years of allegations that the e-commerce giantabused its economic dominance and harmed fair competition.
The groundbreaking lawsuit by the Federal Trade Commission and 17 attorneys general marks the government’s sharpest attack yet against Amazon, a company that started off selling books on the internet but has since become known as “the everything store,” expanding into selling a vast range of consumer products, creating a globe-spanning logistics network and becoming a powerhouse in other technologies such as cloud computing.
The 172-page complaint alleges Amazon unfairly promotes its own platform and services at the expense of third-party sellers who rely on the company’s e-commerce marketplace for distribution.
For example, according to the FTC, Amazon has harmed competition byrequiring sellerson its platformto purchase Amazon’s in-house logistics servicesin order to secure the best seller benefits, referred to as“Prime” eligibility. It also claims the company anticompetitivelyforces sellers to list their productson Amazon at the =lowest prices anywhere== on the web, instead of allowing sellers to offer their products at competing marketplaces for a lower price.
That practice is already the subject of a separate lawsuit targeting Amazon filed by California’s attorney general last year.
Because of Amazon’s dominance in e-commerce,sellers have little optionbut to accept Amazon’s terms, the FTC alleges,resulting in higher pricesfor consumers and a worse consumer experience. Amazon also ranks its own products in marketplace search results higher than those sold by third parties, the FTC said.
Amazon is “squarely focused on preventing anyone else from gaining that same critical mass of customers,” FTC Chair Lina Khan told reporters Tuesday. “This complaint reflects the cutting edge and best thinking on how competition occurs in digital markets and, similarly, thetactics that Amazon has used to suffocate rivals, deprive them of oxygen, and really leave a stunted landscape in its wake.”
The states involved in the case are Connecticut, Delaware, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Hampshire, New Mexico, Nevada, New York, Oklahoma, Oregon, Pennsylvania, Rhode Island, and Wisconsin.
The complaint was filed in the US District Court for the Western District of Washington, and seeks a court order blocking Amazon from engaging in the allegedly anticompetitive behavior.
The FTC isn’t ruling out a possible breakup of Amazon— nor the potential for individual executives to be named== in a landmark antitrust case against the e-commerce giant, according to Khan.
Speaking Tuesday just hours after the lawsuit was filed, Khan declined to say that the FTC would specifically seek a breakup as a remedy to Amazon’s allegedly illegal monopoly.
“At this stage, the complaint is reallyfocused on the issue of liability,” Khan said at the event hosted by Bloomberg News in Washington.
But the agency’s complaint, filed in Seattle federal court, suggests that any court order to address the issuecould include “structural relief,” a legal term referring to a potential breakup of Amazon.
Asked about that request, Khan said the FTC is broadly interested in any relief that can effectively stop Amazon’s allegedly anticompetitive behavior.
https://www.cnn.com/2023/09/26/tech/ftc-sues-amazon-antitrust-monopoly-case/index.html