The Federal Trade Commission filed an antitrust lawsuit against Amazon.com Inc. Tuesday, making for the highest-profile case yet in the agency’s attempt to rein in Big Tech.
The lawsuit, which challenges the tech giant’s business practices as anticompetitive, was filed after months of talks. For years, the agency has been scrutinizing whether Amazon favors its own products over those of competitors on its digital platforms. The FTC also has studied the Amazon Prime subscription service’s bundling practices.
The FTC has pursued two previous actions against Amazon, but this suit will be a decisive test for Khan and the Biden administration. Khan argued in an academic paper published in 2017 that Amazon had amassed too much market power and that U.S. antitrust law had failed to restrain it, and her career was launched in great part on her opposition to some of Amazon’s business practices. The stage is now set for a historic showdown that could take years to make its way through the legal system.
The FTC has laid down some regulatory bread crumbs on its way to this historic action, Garcia and other legal experts say.
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