US Antitrust Case Against Amazon to Move Forward
The U.S. Federal Trade Commission's case accusing Amazon.com of stifling competition in online retail will move forward, though some of the states that sued alongside the agency had their claims dismissed, court documents showed. U.S. District Judge John Chun in Seattle unsealed his ruling from Sept. 30, which dismissed some of the claims brought by attorneys general in New Jersey, Pennsylvania, Maryland and Oklahoma. The FTC has accused the online retailer of using anti-competitive tactics to maintain dominance among online superstores and marketplaces.
Total Retail's Take: Amazon will be forced to defend itself in court against allegations that it was using an algorithm that pushed up prices U.S. households paid by more than $1 billion. The retailer says it stopped using the program in 2019, and that consumers were not harmed by its pricing practices. The issue for Amazon is the significant time and resources it will need to invest to defeat these claims in court, which even for a massive organization like Amazon will take a toll. Similarly, Amazon runs the risk of losing consumer trust if the court does rule against it and in favor of the FTC, which could impact future earnings. This is one of the most significant legal challenges brought against Amazon in its nearly 30-year history, and its result could have long-term ramifications on not only its business, but the retail industry as a whole.
