FTC Prepares to Take Legal Action Against Amazon in Potential Antitrust Case
According to Politico’s report on Tuesday, the U.S. Federal Trade Commission (FTC) is in the process of completing its highly anticipated antitrust lawsuit against Amazon, which could potentially result in the division of certain segments of the company.
A wide-ranging lawsuit is expected as early as August and is likely to challenge many of Amazon’s business practices, the report said, citing people familiar with the matter.
The complaint may focus on challenges to Amazon Prime, Amazon’s rules, which the FTC says prevent lower prices from competing websites, and policies it believes force merchants to use Amazon’s logistics and advertising services, the report said.
The commission has interviewed dozens of witnesses both inside and outside Amazon, including CEO Andy Jassy and former CEO and founder Jeff Bezos, the report said, adding that it will likely take its case to federal court rather than its own internal court.
Politico did not mention the exact details of the final lawsuit, but said the entire agency staff, including FTC Chairwoman Lina Khan, has become familiar with several of Amazon’s business practices.
The e-commerce giant’s digital advertising business and Amazon Prime are likely to be targeted, the report said, adding that the FTC is also expected to allege that Amazon steers sellers to its own logistics services by rewarding them with higher rankings on the site and punishing them. them when they don’t.
The FTC and Amazon declined to comment when contacted by Reuters.
The e-commerce giant’s stock was down nearly 2% in aftermarket trading.
Last month, the FTC accused Amazon of enrolling millions of consumers in the paid Amazon Prime service without their consent and making it difficult for them to cancel.
