The U.S. government has filed a lawsuit against Amazon, alleging that the internet giant unlawfully maintains monopoly power.
According to the Federal Trade Commission (FTC), Amazon engages in “a set of interlocking anticompetitive and unfair strategies” to increase prices and stifle competition.
Amazon stated that the lawsuit was “incorrect based on the facts and the law, and we look forward to defending ourselves in court.”
It is the most recent technology titan to be sued by U.S. authorities.
Lina Khan, the head of the FTC, has had Amazon in her sights for years.
In 2017, Ms. Khan, who was only 29 then, published a significant academic article arguing that the online retailer had evaded antitrust scrutiny.
“With its missionary zeal for consumers, Amazon has marched towards monopoly,” she stated then.
The U.S. government has filed a lawsuit against Amazon, alleging that the internet giant unlawfully maintains monopoly power.
Since her unexpected appointment as FTC Chair in 2021, this case has been widely anticipated and regarded as a crucial leadership test.
Some U.S. legislators have called for action to increase competition in online search, retail, and social media in response to the dominance of a handful of large tech companies.
However, under Ms. Khan, the FTC’s robust rhetoric against Big Tech has yielded few results.
It failed in its endeavor to prevent Meta from acquiring V.R. company Within in February.
And in July, it failed to prevent Microsoft from acquiring the Call of Duty developer.
Ms. Khan is pressured to make at least one prominent complaint stick, and the FTC has high aspirations for this case.
The U.S. government has filed a lawsuit against Amazon, alleging that the internet giant unlawfully maintains monopoly power.
Along with 17 state attorneys, the agency asserts that the company is a “monopolist” that prevents competitors and sellers from lowering pricing.
In addition, the regulator claimed Amazon’s actions “degrade quality for consumers, overcharge sellers, stifle innovation, and prevent rivals from competing fairly with Amazon.”
However, the company claims that if the “misguided” FTC lawsuit is successful, consumers will have fewer options, pay higher prices, and experience delayed delivery times.
Due to the alleged monopoly, consumers lose money and receive worse bargains, which is the central argument of the case.
U.S. anti-competition law is complex, but prosecutors must demonstrate that a company’s actions have caused financial harm to consumers.
Many of Big Tech’s services, such as Google’s search engine and Meta’s Instagram, are free, proving this is only sometimes straightforward.
Google and the United States government began a court battle earlier this month, with the government accusing Google of monopolizing advertising technology.
SOURCE – (BBC)
