FTC Sues Amazon, Alleging Company Illegally Maintains ‘Monopoly Power’

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The Federal Trade Commission and 17 state attorneys general filed an antitrust lawsuit against Amazon.

, alleging that the ecommerce and technology giant is a monopolist that “uses a set of interlocking anticompetitive and unfair strategies to illegally maintain its monopoly power.”and the state AGs allege that Amazon’s actions allow it to stop rivals and sellers from lowering prices; degrade quality for shoppers; overcharge sellers; stifle innovation; and prevent rivals from fairly competing against Amazon.

The lawsuit — which has been brewing over the last several months– seeks a permanent injunction in U.S. federal court that would prohibit Amazon “from engaging in its unlawful conduct and pry loose Amazon’s monopolistic control to restore competition.” “Our complaint lays out how Amazon has used a set of punitive and coercive tactics to unlawfully maintain its monopolies,” FTC Chair Lina Khan said in a statement. “The complaint sets forth detailed allegations noting how Amazon is now exploiting its monopoly power to enrich itself while raising prices and degrading service for the tens of millions of American families who shop on its platform and the hundreds of thousands of businesses that rely on Amazon to reach them.

The FTC commissioners voted 3-0 to authorize the lawsuit, filed in the U.S. District Court for the Western District of Washington. The state AGs joining the suit were from Connecticut, Delaware, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Hampshire, New Mexico, Nevada, New York, Oklahoma, Oregon, Pennsylvania, Rhode Island and Wisconsin.

 

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FTC sues Amazon, accuses company of illegally maintaining monopoly powerThe Federal Trade Commission has filed a lawsuit against Amazon accusing the company of illegally maintaining monopoly power.
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