FTC sues Amazon for illegally maintaining monopoly power

FTC accuses that Amazon’s ongoing pattern of illegal conduct blocks competition, allowing it to wield monopoly power to inflate prices, degrade quality, and stifle innovation for consumers and businesses.

FTC sues Amazon for illegally maintaining monopoly power

The sell-off in stocks with the investment committee is a first for Eamon Javers. He is in Washington. He has breaking news for us right now on Amazon and the FTC.

The Federal Trade Commission filed an antitrust lawsuit against Amazon this morning, alleging the tech company has used interlocking, quote, anti-competitive, and unfair strategies to illegally maintain monopoly power. Joined by 17 state attorneys general to stop rivals and sellers from lowering prices, degrading quality for shoppers, overcharging sellers, and stifling innovation, the suit represents one of the The most comprehensive and forceful actions taken by the Biden administration to disperse what it perceives as centralized power in the hands of the digital titans. The administration hopes this will both lower prices, encourage new competition, and spark new innovations that will help the economy.

According to the FTC, Amazon’s alleged methods have an annual impact on retail sales of hundreds of billions of dollars. Lee, the head of the FTC. It takes place in two markets: the one for online superstars that caters to consumers and the one for services used by online marketplaces that are bought by vendors. The alleged tactics include anti-discounting measures and conditioning sellers’ ability to obtain prime eligibility by using Amazon’s costly fulfillment service.

The FTC says it is seeking a permanent injunction in federal court that would prohibit Amazon from engaging in that conduct, Scott. Over the past half hour, Lina Chan held a press available with reporters. I asked her what the outcome was, and if she’s seeking a breakup from Amazon. She did not say that and did not go that far. She said this is all about determining whether or not Amazon has liability in this case. She continued by saying that ultimately, this is about the scope and magnitude of Amazon, the feedback loop of all these many processes in interlocking agreements operating in concert. This comment provided insight into her thought.

She said that when used together, these strategies are more effective than any one of them used separately. I get the impression, Scott, that there’s a chance the government could eventually want to see Amazon split up in some way. Even though the topic at hand is whether Amazon is liable, they are not claiming anything at this time. Anything they have to say about this will be brought to you.

A couple of things, liability, you hear that and think a fine would be the most logical outcome in terms of remedy and this is not Lina Khan’s first dustup.

Reporter: They have not won every time they’ve been aggressive. We should consider this in light of, for instance, the FTC’s inability to stop Microsoft Activision. You can easily see the size of Amazon’s defense in this situation; it is one of the most potent and successful defenses that will launch a vigorous resistance. I think we’ll hear from them soon. We’ll wait to hear what they have to say, but they’ll send out entire armies of attorneys. Amazon paid a $25 million fine.

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