The Federal Trade Commission and more than a dozen state attorneys general have filed a sweeping antitrust lawsuit against Amazon, accusing the e-commerce giant of illegally exploiting its market dominance to eliminate potential competitors.
“Our complaint shows how Amazon uses an array of punitive and coercive tactics to illegally maintain its monopoly,” FTC Chairwoman Lina Khan said in a statement.
She added: “The indictment contains detailed allegations showing how Amazon used its monopoly power to enrich itself while simultaneously raising prices and disrupting the lives of millions of American families who shop on its platform and hundreds of thousands of businesses that depend on Amazon.” Deteriorated” shopping and service. » To contact them. "
“The FTC’s lawsuit is factually and legally flawed,” Amazon said in a statement.
According to an FTC press release, the lawsuit targets those parts of Amazon's business that serve consumers and sellers.
The agency accused Amazon of penalizing sellers who offer low-priced products across the platforms and restricting sellers who are eligible for Prime shipping benefits.
The agency also criticized Amazon's ability to direct search results to the company's own products. The agency said it is seeking a permanent injunction from the federal court to restrain Amazon from its illegal practices and ease the company's monopoly controls to restore competition.
Rumors of a potential lawsuit against the Federal Trade Commission have circulated for months, and a July report from Politico indicated that legal action was imminent.
The US Federal Trade Commission has taken repeated action against Amazon in recent months, filing a lawsuit against the company in June, accusing it of luring its customers into taking up Prime subscriptions and making it difficult to cancel them.
In addition, the e-commerce giant spent $1.42 billion to buy the iRobot robotic vacuum cleaner, which the Federal Trade Commission began reviewing last year, and MGM Resorts. The FTC is also investigating Amazon's other businesses, including its doorbell service.
Amazon earlier this year agreed to pay $5.8 million to settle a lawsuit brought by the Federal Trade Commission that accused Ring employees and hackers of illegally spying on customers.
The company also paid $25 million to settle a separate Federal Trade Commission complaint alleging that Alexa products violated several federal laws by storing recordings of children's voices.