US regulator files anti-trust lawsuit against online retailer Amazon

17 states filed a lawsuit against one of the richest firms in the world on Tuesday, according to the US Federal Trade Commission. By restricting competition, Amazon is alleged to be hurting customers. accusing the online store is injuring customers by charging more. This is the most recent legal step the U.S. government has taken to challenge big tech’s hegemony over the internet. The case was filed in response to years of allegations that computer behemoths like Amazon and others were using their control over social media, online retail, and search to control access to the most lucrative parts of the internet.

Table of Contents

US trade watchdog sues Amazon

The American Federal Trade Commission has now launched a long-awaited antitrust action against Amazon, alleging that the online retailer is hurting customers by charging them more money. This is the most recent legal action taken by the US government to challenge Big Tech’s hegemony over the internet. The case was filed in response to years of complaints alleging that tech giants like Amazon and Google leveraged their control over search, social media, and online retail to monopolize the most lucrative parts of the internet.

After a four-year investigation into the online retailer and multiple federal cases against Alphabet’s Google and Facebook, this complaint was filed. “The FTC and its state partners say Amazon’s action allows its rivals and sellers from lowering prices, degrading quality for less money,” the watchdog said in a statement Overcharging vendors, stifling innovation, and preventing rivals from properly competing against Amazon are all negative effects.

According to the FTC, it is seeking the court to impose a permanent injunction requiring Amazon.com to cease its illegal actions. According to the FTC, Amazon penalizes vendors who attempt to provide pricing that are less expensive than Amazon’s by making it hard for customers to locate the seller on Amazon’s marketplace. According to other claims, Amazon gives precedence to its own items on its platforms over those of its rivals.

One of the few issues on which Democrats and Republicans could agree during the Trump Administration, which ended in 2021, was the need to take action against Big Tech. Google, Facebook, Apple, and Amazon are the subjects of investigations by the Justice Department and the Trade Commission. Google was sued twice by the Justice Department, once while Republican Donald After Democrat Joe Biden became office, Trump complained about its search business and then again about advertising technology. During the Trump Administration, the Trade Watchdog sued Facebook, and the Biden administration is continuing the case.

Companies don’t get much bigger in the US than Amazon, which is valued 1.3 trillion dollars and has over a million employees globally. Federal regulators in the US, however, claim that it used unfair methods to become thus powerful and wealthy. Approximately 60% of Amazon.com’s sales are made by small and medium-sized businesses. The FTC asserts that when sellers list on Amazon, one dollar of every two that they earn goes to Amazon due to taxes and regulations, which it claims equates to a 50% Amazon tax. Consumers eventually benefit from this.

The FTC claims that due to Amazon’s popularity, retailers have no choice but to make payments. Additionally, it claims that Amazon is raising product pricing because The claim is that if such vendors offer their goods for cheaper on another marketplace, Amazon essentially removes their listing from its website. Sellers feel pressured to do all Amazon asks of them and to pay whatever Amazon demands of them.

Any misconduct by Amazon is denied. The judicial process for the case is anticipated to take years, but analysts warn that if the corporation loses, it may have a significant effect on the business. One of the things the FTC is requesting is a split, but there are a number of other outcomes that are possible, such as just prohibiting Amazon from the different practices that are the subject of this complaint.

All of this is a part of the Biden Administration’s pledge to take on big tech. The parent corporation of Facebook, Meta, is also being sued by the FTC. The Justice Department is now battling Google in court. The outcome of these lawsuits will probably have a significant influence on people everywhere and the how everyone will utilize technology in the future.

Similar Posts

December 22, 2023

Can ghosts know when you can see them?
December 22, 2023

First night of Arrange Marriage | What are some first-night essentials for a bride in Arrange Marriage?
December 20, 2023

Agniveer’s Scheme Truth Reviled