News Update


Amazon: The US accuses the internet retailer of illegal monopoly power.

According to the FTC, Amazon uses “a set of interlocking anticompetitive and unfair strategies” to raise prices and suppress competition.

The complaint, according to Amazon, is “wrong on the facts and law, and we look forward to making that case in court.”

It is the most recent technological behemoth to be sued by US regulators.

Lina Khan, the FTC’s chairman, has had Amazon on her radar for years.

Ms Khan, then 29, released a key scholarly study in 2017 suggesting that the online store had dodged anti-competition scrutiny.

“With its missionary zeal for consumers, Amazon has marched toward monopoly,” she declared at the time.

This lawsuit has been keenly anticipated since her surprise nomination as FTC Chair in 2021 – and is seen as a critical test of her leadership.

The dominance of a few large internet businesses has prompted some US politicians to advocate for more competition in online search, shopping, and social media.

However, Ms Khan’s FTC has had little to show for its harsh rhetoric against Big Tech.

It failed in its attempt to prevent Meta from acquiring VR firm Within in February.

In July, it lost an attempt to prevent Microsoft from finalizing its acquisition of Call of Duty creator Activision.

Ms Khan is under pressure to submit at least one high-profile complaint, and the FTC is optimistic about this case.

The agency, along with 17 state attorneys general, contends that Amazon is a “monopolist” that prevents competitors and sellers from cutting prices.

The regulator also claimed that Amazon’s practices “degrade quality for customers, overcharge sellers, stifle innovation, and prevent rivals from competing fairly against Amazon.”

However, Amazon claims that if the “misguided” FTC action is successful, shoppers will have fewer products to pick from, higher prices, and slower deliveries.


Your email address will not be published. Required fields are marked *