Global: FTC Set to Sue Amazon for Antitrust Violations in Upcoming Lawsuit

Reports suggest that the Federal Trade Commission (FTC) is preparing to file a lawsuit against Amazon for alleged antitrust violations in the coming week.

The anticipated antitrust complaint, slated for filing in federal court, is expected to address several significant issues, as reported by Bloomberg, citing anonymous sources.

According to the sources, the lawsuit is expected to scrutinize Amazon’s pricing strategies, its Prime subscription service, and accusations that the company unlawfully links merchant access to its marketplace with the use of its logistics service.

One of Amazon’s distinguishing features is its Prime membership, known for converting sporadic shoppers into devoted customers. However, the FTC’s investigation is likely to assess the impact of Prime on competition and consumer choice.

The FTC has been monitoring Amazon for over four years, with an investigation into potential anticompetitive practices across various aspects of Amazon’s business initiated during the Trump administration. More recently, under the leadership of FTC Chair Lina Khan, the agency has further refined its investigation and launched new inquiries into the tech giant.

In August, Amazon executives engaged in discussions with Khan and other FTC commissioners concerning the potential lawsuit. However, no settlement was reached during the meeting.

This impending lawsuit marks the FTC’s fourth attempt to address concerns surrounding Amazon’s business practices.

In May, the FTC previously sued Amazon, bringing forth two separate cases. The first case accused the company of retaining data about children collected by its Alexa speakers, while the second alleged illegal surveillance of users of its Ring doorbells and cameras. Amazon agreed to a $30.8 million settlement to resolve these suits, although it disputed the FTC’s allegations.

In June, the FTC filed another lawsuit against Amazon, contending that the company misled consumers into subscribing to the Prime service and made the cancellation process deliberately challenging. On September 20, the FTC amended its complaint to include three Amazon executives as defendants in the case. Amazon is currently contesting these allegations.