U.S. sues amazon for antitrust issues forcing the online retailer to sell assets. The U.S. FTC filed a long-awaited antitrust lawsuit against Amazon on Tuesday and asked the court to consider forcing the online retailer to sell assets as the government accuses Big Tech of monopolizing the most lucrative parts of the internet.
Amazon landmark monopoly case was filed by FTC, after accusing the company that started in a garage in 1994 and today worth $1.3 trillion, of fighting efforts by sellers on its online marketplace to offer products more cheaply on other platforms. Sellers are forced by Amazon sellers to use its warehouses and delivery services, inflating costs for consumers and sellers, the FTC said.
Amazon landmark monopoly case
FTC U.S. sues Amazon by stating that it has monopoly and misuses its powers, which quotes a seller as saying: “We have nowhere else to go and Amazon knows it.”
FTC lawsuit had been expected after years of complaints that Amazon.com and other tech giants abused their dominance of search, social media and online retailing to become gatekeepers on the most profitable aspects of the internet.
Against Amazon FTC filed a lawsuit as it has been one of the few ideas that Democrats and Republicans have agreed on, and the FTC chief has been particularly concerned about Amazon’s power.
FTC lawsuit against Amazon
The FTC lawsuit against Amazon, which was joined by 17 state attorneys general, follows a four-year investigation and federal lawsuits filed against Alphabet’s (GOOGL.O) Google and Meta Platforms’ (META.O) Facebook.
As per FTC said that it was asking the court to issue a permanent injunction ordering Amazon to stop its unlawful conduct. The FTC lawsuit was filed in federal court in Seattle, where Amazon is based.
“Left unchecked, Amazon will continue its illegal course of conduct to maintain its monopoly power,” the FTC said in its complaint which asked the court “to put an end to Amazon’s illegal course of conduct, pry loose Amazon’s monopolistic control, deny Amazon the fruits of its unlawful practices, and restore the lost promise of competition.”
The FTC complaint asked for the court to consider “any preliminary or permanent equitable relief, including but not limited to structural relief, necessary to restore fair competition.”
Amazon on FTC lawsuit
Amazon said that the FTC lawsuit was wrongheaded and would hurt consumers by leading to higher prices and slower deliveries.
“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,” said David Zapolsky, Amazon’s general counsel.
Amazon shares down
Amazon shares, which were down 3.2% before the lawsuit was announced, traded further down 4% in late afternoon trade. Some investors saw upside from the lawsuit.
FTC allegations against Amazon
The FTC said that Amazon punished sellers that sought to offer prices that were lower than Amazon’s by making it difficult for consumers to find the seller on Amazon’s platform.
Other allegations include that Amazon gave preference to its own products on its platforms over competitors.
Amazon playing monopoly game
Khan said that Amazon had used illegal tactics to fend off companies that would have risen to challenge its monopoly.
FTC lawsuit against Amazon appreciated by many
“No corporation has ever centralized this much power across so many crucial sectors. Left unchecked, Amazon’s power to dictate and control threatens the rule of law and our ability to maintain open, democratically governed markets,” said Stacy Mitchell of the Institute for Local Self-Reliance, which has pushed for the government to act against Amazon.
