Amazon sued by FTC, 17 states over allegations of overcharging
The Federal Trade Commission and 17 states are suing Amazon over allegations the e-commerce giant is inflating prices and overcharging sellers.
The lawsuit was filed Tuesday in Washington following “a yearslong investigation into the company’s businesses and one of the most significant legal challenges brought against it in its nearly 30-year history,” The Associated Press reported.
“There is immediate harm that is ongoing here,” FTC Chair Lina Khan told Politico. “Sellers are paying one of every two dollars to Amazon. Shoppers are paying higher prices as a result not just on Amazon but across the internet.”
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What is included in the 172-page complaint against Amazon?
The allegations center around Amazon’s control over the e-commerce marketplace. Here are some of the complaints in the lawsuit.
Accusations that “Amazon unfairly promotes its own platform and services at the expense of third-party sellers who rely on the company’s e-commerce marketplace for distribution,” per CNN.
By doing this, the allegations state it resulted in “artificially higher prices” because third-party sellers were prevented from selling products for less money on their own sites, per The New York Times.
These tactics “made it impossible for its rivals to compete,” the Times reported.
There are claims that Amazon is “degrading customers’ experience by replacing relevant search results with paid advertisements,” per AP.
It also states that it pressures sellers to use Amazon Prime fulfillment services, rather than use alternative fulfillment services some sellers might prefer, AP reported.
The government also claims Amazon executives tried to obstruct its investigation by using encrypted apps like Signal for communications, according to Politico.
The lawsuit is one of multiple Big Tech antitrust lawsuits. There is growing concerns for economists, researchers and lawmakers that the power and control these mega-corporations have over the market, is harming competition and ultimately
The lawsuit is one of multiple Big Tech antitrust lawsuits. There is growing concerns for economists, researchers and lawmakers that the power and control these mega-corporations have over the market, is harming competition and ultimately harming Americans, according to The Washington Post.
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