- September 26, 2023
US sues Amazon for ‘inflating online prices, harming consumers’ – Times of India
NEW DELHI: The US Federal Trade Commission on Tuesday filed a long-awaited antitrust lawsuit against Amazon.com, days after similar lawsuits were filed against Alphabet’s Google and Meta Platforms’ Facebook.
According to reports US regulators and 17 states alleged that Amazon’s policies inflate online prices and stifle competition.
It also charged the online giant with “harming consumers” with prices.
The lawsuit marks the latest US government action aimed at breaking Big Tech‘s dominance of the internet.
It had been expected after years of complaints that Amazon.com and other tech giants abused their dominance of search, social media and online retailing to become gate keepers on the most lucrative aspects of the internet.
It has been filed after a four-year investigation.
“The FTC and its state partners say 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 agency said in a statement.
The FTC said that it was asking the court to issue a permanent injunction ordering Amazon.com to stop its unlawful conduct, Reuters reported.
The FTC said that Amazon, founded in 1994 and worth more than $1 trillion, punished sellers that sought to offer prices that were lower than Amazon’s by making it difficult for consumers to find the seller on Amazon’s platform.
Other allegations include that Amazon gave preference to its own products on its platforms over competitors also on the platform.
The need to take action against Big Tech has received bipartisan support from Democrats and Republicans.
During the Trump administration which ended in 2021, the Justice Department and FTC opened probes into Google, Facebook, Apple and Amazon.
The Justice Department has sued Google twice – once under Republican Donald Trump regarding its search business and a second time on advertising technology since Democratic President Joe Biden took office.
The FTC sued Facebook during the Trump administration and Biden’s FTC has pressed forward with the lawsuit.
(With inputs from Reuters)
According to reports US regulators and 17 states alleged that Amazon’s policies inflate online prices and stifle competition.
It also charged the online giant with “harming consumers” with prices.
The lawsuit marks the latest US government action aimed at breaking Big Tech‘s dominance of the internet.
It had been expected after years of complaints that Amazon.com and other tech giants abused their dominance of search, social media and online retailing to become gate keepers on the most lucrative aspects of the internet.
It has been filed after a four-year investigation.
“The FTC and its state partners say 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 agency said in a statement.
The FTC said that it was asking the court to issue a permanent injunction ordering Amazon.com to stop its unlawful conduct, Reuters reported.
The FTC said that Amazon, founded in 1994 and worth more than $1 trillion, punished sellers that sought to offer prices that were lower than Amazon’s by making it difficult for consumers to find the seller on Amazon’s platform.
Other allegations include that Amazon gave preference to its own products on its platforms over competitors also on the platform.
The need to take action against Big Tech has received bipartisan support from Democrats and Republicans.
During the Trump administration which ended in 2021, the Justice Department and FTC opened probes into Google, Facebook, Apple and Amazon.
The Justice Department has sued Google twice – once under Republican Donald Trump regarding its search business and a second time on advertising technology since Democratic President Joe Biden took office.
The FTC sued Facebook during the Trump administration and Biden’s FTC has pressed forward with the lawsuit.
(With inputs from Reuters)
