FTC criticizes Amazon for ‘Monopolistic Practices’ in Antitrust Lawsuit

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The Federal Trade Commission (FTC) has officially filed an antitrust lawsuit against Amazon in the Western Washington district court, accompanied by 17 states. While the case itself was not entirely unexpected, the specific allegations and details have not yet been made public.

Accusations against Amazon include engaging in monopolistic practices, such as allegedly restricting merchants from offering lower prices on competing platforms and mandating the use of Amazon’s logistics service to qualify for Prime shipping benefits. These practices are said to result in higher prices for consumers and a less favorable shopping experience.

FTC chair Lina Khan has made it clear that the goal of the lawsuit is to hold Amazon accountable for these actions and to restore fair competition in the market. The lawsuit portrays Amazon as a monopolistic entity that prioritizes its own interests over those of customers and businesses that rely on the platform.

Joining the FTC in this legal battle are 17 states, including New York, Connecticut, and Pennsylvania. This is not the first time Amazon has faced legal action from the FTC this year, with previous cases involving issues such as privacy violations and deceptive Prime subscriptions.

In response to the lawsuit, Amazon has denied any wrongdoing and has expressed its intention to vigorously defend itself in court. The media is likely to frame this legal confrontation as a significant clash between FTC chair Lina Khan and the tech giant, highlighting the power dynamics at play and marking a pivotal moment for Amazon in its relationship with regulatory authorities.