FTC, 17 US States Bring Antitrust Suit Against Amazon

The Federal Trade Commission and 17 state attorney generals launched a lawsuit against Amazon, alleging the e-commerce titan leverages its market dominance to raise prices on other platforms, overcharge suppliers, and hinder competition.

According to the lawsuit, Amazon will “bury” lower-priced products deep in its search ranks, essentially making them “invisible,” while conditioning merchants to attain “Prime” eligibility for their products, which are then automatically tied to the company’s fulfillment services.

“The complaint sets forth detailed allegations noting how Amazon is now exploiting its monopoly power to enrich itself while raising prices and degrading service for the tens of millions of American families who shop on its platform and the hundreds of thousands of businesses that rely on Amazon to reach them,” said FTC Chair Lina Khan.

The lawsuit, filed in the United States District Court for the Western District of Washington, is the outcome of a lengthy investigation of Amazon’s operations and is one of the most significant legal challenges taken against the firm.

In response to the lawsuit, David Zapolsky, SVP, Amazon Global Public Policy & General Counsel, said, “If the FTC gets its way, the result would be fewer products to choose from, higher prices, slower deliveries for consumers, and reduced options for small businesses—the opposite of what antitrust law is designed to do. The lawsuit filed by the FTC today is wrong on the facts and the law, and we look forward to making that case in court.”