Amazon.com Inc. (AMZN) secured a partial victory in a high-profile antitrust lawsuit brought by the U.S. Federal Trade Commission (FTC), which accused the e-commerce giant of maintaining illegal monopolies. The federal court in Seattle, under U.S. District Judge John Chun, issued a sealed ruling on Monday, partially granting Amazon’s motion to dismiss some of the FTC’s claims. However, the specific details of the ruling remain undisclosed.
The FTC has accused Amazon of employing anti-competitive tactics to dominate online superstores and marketplaces. The lawsuit contends that Amazon's practices, such as encouraging sellers to use its advertising and fulfillment services, have unfairly hampered competition. The FTC also claims that Amazon’s use of certain algorithms pushed prices up for U.S. consumers by more than $1 billion. Amazon, however, argued that these services, including price-matching and its popular Prime shipping, benefit consumers by fostering competition against other retailers. The company has also asserted that the algorithm in question was discontinued in 2019.
While Judge Chun dismissed some of the FTC’s claims, the agency can continue pursuing the remaining allegations. Notably, the judge ruled that the case would proceed in two parts, rejecting Amazon’s bid to have the FTC present its evidence of violations and proposed remedies in a single trial.
The Amazon lawsuit is one of several significant antitrust cases being pursued by the FTC and the U.S. Department of Justice (DOJ) against major tech companies, including Meta Platforms (Facebook), Apple, and Google. For FTC Chair Lina Khan, the Amazon case is particularly important, as she has been a vocal critic of the company's practices, which she argues undermine competition. In 2017, Khan authored a landmark paper that argued Amazon’s structure and business model evaded traditional antitrust scrutiny, a stance that helped shape her tenure at the FTC.
This partial dismissal represents a noteworthy development in the broader push by regulators to rein in the power of Big Tech, though the case against Amazon continues to move forward on other fronts.
The FTC has accused Amazon of employing anti-competitive tactics to dominate online superstores and marketplaces. The lawsuit contends that Amazon's practices, such as encouraging sellers to use its advertising and fulfillment services, have unfairly hampered competition. The FTC also claims that Amazon’s use of certain algorithms pushed prices up for U.S. consumers by more than $1 billion. Amazon, however, argued that these services, including price-matching and its popular Prime shipping, benefit consumers by fostering competition against other retailers. The company has also asserted that the algorithm in question was discontinued in 2019.
While Judge Chun dismissed some of the FTC’s claims, the agency can continue pursuing the remaining allegations. Notably, the judge ruled that the case would proceed in two parts, rejecting Amazon’s bid to have the FTC present its evidence of violations and proposed remedies in a single trial.
The Amazon lawsuit is one of several significant antitrust cases being pursued by the FTC and the U.S. Department of Justice (DOJ) against major tech companies, including Meta Platforms (Facebook), Apple, and Google. For FTC Chair Lina Khan, the Amazon case is particularly important, as she has been a vocal critic of the company's practices, which she argues undermine competition. In 2017, Khan authored a landmark paper that argued Amazon’s structure and business model evaded traditional antitrust scrutiny, a stance that helped shape her tenure at the FTC.
This partial dismissal represents a noteworthy development in the broader push by regulators to rein in the power of Big Tech, though the case against Amazon continues to move forward on other fronts.