FTC is hunting Amazon and judge approves it

So, a federal judge just cleared the way for the Federal Trade Commission (FTC) to move forward with its antitrust case against Amazon. The FTC is accusing Amazon of using its market power to unfairly dominate, particularly by punishing sellers who offer discounts outside of Amazon and pushing them to use its fulfillment services to get better placement on the site.

Why judge approves FTC’s antitrust suit against Amazon

Amazon had tried to get the case thrown out, but the judge, John Chun, said no to most federal claims based on antitrust laws like the Sherman Act. Some claims related to state laws were dismissed, but those might get another shot after some tweaks.

“We are pleased with the court’s decision and look forward to moving this case forward. The ways Amazon illegally maintains its monopolies and the harm they cause — including suppressed competition and higher prices for shoppers and sellers — will be on full display at trial. This case ultimately seeks to pry loose Amazon’s monopolistic control and restore competition,” FTC spokesperson Douglas Farrar stated.

FTC is hunting Amazon and judge approves it (Image credit)

The FTC is happy with the outcome so far, saying this case is about showing how Amazon’s actions harm competition and raise prices for everyone. They want to break up what they see as Amazon’s monopolistic control. Amazon, on the other hand, is downplaying the ruling. Their spokesperson pointed out that at this early stage, the court has to assume everything the FTC says is true, but they’re confident the FTC won’t be able to back up these claims once the trial starts.

The judge’s decision doesn’t guarantee how things will end, though. Chun said it’s too early to consider Amazon’s defense, like any arguments that their practices benefit competition, but those will come up during the trial. The case will also be split into two parts: first, figuring out if Amazon is actually guilty, and if they are, then deciding on any consequences.

This is a big deal, and it’s similar to what’s happening with Google’s antitrust trials, where major tech companies are being called out for their market practices. All eyes will be on the courtroom to see how it plays out.

Featured image credit: Kerem Gülen/Ideogram