FTC hits Amazon with antitrust lawsuit accusing it of manipulating the web market

The Federal Trade Commission and 17 states sued Amazon on Tuesday for allegedly utilizing unlawful techniques to forestall opponents from rising.

The FTC mentioned it took Amazon to court docket not as a result of it was huge however as a result of it was dangerous.

“We’re bringing this case because Amazon’s illegal conduct has stifled competition across a huge swath of the online economy,” mentioned FTC Bureau of Competition deputy director John Newman. “Amazon is a monopolist that uses its power to hike prices on American shoppers and charge sky-high fees on hundreds of thousands of online sellers.”

The antitrust lawsuit accused Amazon of blocking competitors through the use of coercive and anti-discounting methods designed to kill others within the on-line commerce market. 

Amazon countered that the FTC is incorrect on the details and the regulation. The firm mentioned it’s wanting to make its case within the U.S. District Court for the Western District of Washington. 

Amazon senior vice chairman David Zapolsky mentioned the FTC had radically departed from the company’s core focus, and the federal government’s desired end result would hurt markets as a substitute of defending customers from unfair competitors. 

“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,” Mr. Zapolsky mentioned in a press release. “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.”

American policymakers’ new authorized battle with Amazon drew applause from Big Tech’s critics craving for a brand new crackdown and drew opposition from free-market proponents involved about regulators’ conduct. 

Internet Accountability Project president Mike Davis mentioned the FTC’s antitrust lawsuit was an important step wanted to rein in Big Tech monopolies reminiscent of Amazon.

“Free markets require functioning markets,” Mr. Davis mentioned. “This requires enforcement of our century-old antitrust laws to target anticompetitive tumors.”

The Competitive Enterprise Institute’s Jessica Melugin mentioned the FTC had strayed from its mission of defending customers. 

“Consumers have choices for where they shop and third parties have choices in where they sell, like Walmart, through social media marketplaces, and on independent websites,” she mentioned. “The FTC’s case is a waste of taxpayer dollars and risks harming American consumers by degrading the benefits Amazon provides.”

The lawsuit showcases American policymakers’ escalating feud with Big Tech because the 2024 elections develop nearer. FTC chairwoman Lina Khan is beneath mounting strain on Capitol Hill, the place her work is going through investigations from three House committees.

Ms. Khan’s conduct has led Rep. Kevin Kiley to query whether or not the FTC was intentionally choosing shedding fights to create the looks of a necessity for brand new legal guidelines. The California Republican pressed Ms. Khan throughout a House Judiciary Committee listening to in July over whether or not she was deliberately bringing misbegotten lawsuits. 

Ms. Khan replied that her company solely brings lawsuits when it believes it has recognized a violation of the regulation. 

The FTC and 17 states suing Amazon on Tuesday mentioned their lawsuit was not the results of hatred for Big Tech. 

“According to an industry source, Amazon now captures more sales than the next fifteen largest U.S. online retail firms combined,” the lawsuit mentioned. “Yet Amazon has violated the law not by being big, but by how it uses its scale and scope to stifle competition.”