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FTC v. Amazon

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2023 lawsuit brought against the multinational technology company Amazon

Federal Trade Commission et al v. Amazon.com, Inc
CourtUnited States District Court for the Western District of Washington
Full case name Federal Trade Commission, State of New York, State of Connecticut, Commonwealth of Pennsylvania, State of Delaware, State of Maine, State of Maryland, Commonwealth of Massachusetts, State of Michigan, State of Minnesota, State of Nevada, State of New Hampshire, State of New Jersey, State of New Mexico, State of Oklahoma, State of Oregon, State of Rhode Island and State of Wisconsin v. Amazon.com, Inc.
Docket nos.2:23-cv-01495

Federal Trade Commission, et al. v. Amazon.com, Inc. is a lawsuit brought against the multinational technology company and online retailerAmazon in 2023. TheFederal Trade Commission (FTC), joined by the attorneys general of seventeenU.S. states, alleges that Amazon holds and abuses an online retailmonopoly.[1][2]

Background

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Amazon is a multinational technology company founded byJeff Bezos in 1994 as a bookseller that has since become the world's largestonline retailer.[3] The company has expanded to other ventures such asAmazon Prime Video andAmazon Web Services.[1] As of 2022[update], it had a turnover of over $500 billion, making it one of the largest companies in the world.[4] The case drew comparisons to a notableYale Law journal article written by incumbent FTC Chair,Lina Khan, that used Amazon as an example of howUnited States antitrust law should be rewritten. Will Oremus of theWashington Post noted that the actual case was much more tempered than the arguments put forth by Khan in her article.[5]

Claims

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The case, filed in the U.S. state ofWashington, alleges that Amazon took part in a number of anti-competitive practices.[6]

The FTC and states allege Amazon's anticompetitive conduct occurs in two markets—the online superstore market that serves shoppers and the market for online marketplace services purchased by sellers.[7]

The alleged anticompetitive practices include:[7]

  • Anti-discounting measures
  • Conditioning sellers' ability to obtainAmazon Prime eligibility for their products

and seeking to extractmonopoly rents by:[7]

  • Replacing organic search results with paid advertisements and "junk" ads
  • Biasing Amazon's search results
  • Charging costly fees to sellers 

The plaintiffs are seeking apermanent injunction in federal court that would prohibit Amazon from engaging in these practices.[7]

See also

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References

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  1. ^abMcCabe, David (September 26, 2023)."U.S. Accuses Amazon of Illegally Protecting Monopoly in Online Retail".The New York Times.Archived from the original on September 26, 2023. RetrievedSeptember 26, 2023.
  2. ^Fung, Brian (September 26, 2023)."US government and 17 states sue Amazon in landmark monopoly case".CNN.Archived from the original on September 26, 2023. RetrievedSeptember 26, 2023.
  3. ^Debter, Lauren (May 12, 2022)."The World's Largest Retailers 2022: Pandemic Helps Amazon Cement Its Lead".Forbes.Archived from the original on September 26, 2023. RetrievedSeptember 26, 2023.
  4. ^"Topic: Amazon".Statista.Archived from the original on September 27, 2023. RetrievedSeptember 27, 2023.
  5. ^Oremus, Will (September 27, 2023)."Analysis | Lina Khan's Amazon lawsuit is nothing like her famous law article".Washington Post.ISSN 0190-8286. RetrievedDecember 5, 2023.
  6. ^"Amazon sued by FTC and 17 states over allegations it inflates online prices and overcharges sellers".AP News. September 26, 2023.Archived from the original on September 26, 2023. RetrievedSeptember 26, 2023.
  7. ^abcd"FTC Sues Amazon for Illegally Maintaining Monopoly Power".Federal Trade Commission. September 26, 2023.Archived from the original on September 26, 2023. RetrievedSeptember 27, 2023.

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