FTC to File Antitrust Lawsuit Against Amazon
The Federal Trade Commission (FTC) is preparing to file an antitrust lawsuit against Amazon as soon as next week, according to Bloomberg and Reuters. The lawsuit is expected to target Amazon Prime, as well as claims that Amazon pushes third-party sellers to use its logistics and advertising services. The FTC is also said to believe that Amazon has rules to prevent products from being sold for less on rival platforms.
The FTC has been scrutinizing Amazon for several years. If it files suit next week, that will mark the fourth action it has taken against the company this year. In May, the FTC sued Amazon over children’s privacy concerns related to Alexa and claims that it was snooping on Ring users. Amazon paid a total of $30.8 million to quickly settle charges in both cases.
The following month, the FTC filed another complaint against Amazon, this time claiming that the company coerced people into signing up for a Prime subscription then making it difficult for them to cancel. That case is still ongoing. This week, the agency added three Amazon executives as defendants. It claims those individuals rebuffed pleas from Amazon employees to stop using deceptive tactics to trick people into signing up for a recurring payment through Prime.
The FTC’s antitrust lawsuit against Amazon is a significant development. It is the first time that the agency has taken action against one of the Big Tech companies on antitrust grounds. The lawsuit could have a major impact on Amazon and the e-commerce industry as a whole.
It is important to note that Amazon has denied all of the allegations made against it by the FTC. The company has said that it is committed to fair competition and that it is always looking for ways to improve its services for customers.
The FTC’s antitrust lawsuit against Amazon is likely to be a complex and lengthy legal battle. It remains to be seen how the case will be resolved. However, the lawsuit is a sign that the FTC is increasingly concerned about the power of Big Tech companies and their potential to stifle competition.
