sb.scorecardresearch

Published 12:40 IST, February 14th 2024

US Judge schedules FTC antitrust suit against Amazon for October 2026

The FTC seeks a permanent injunction to halt what it considers unlawful conduct by Amazon.

Reported by: Business Desk
Follow: Google News Icon
  • share
Amazon
Amazon | Image: Unsplash

A federal judge in the United States has scheduled a trial for October 2026 regarding the Federal Trade Commission's (FTC) antitrust lawsuit against Amazon.com. The lawsuit, initiated on September 26, alleges that Amazon operates an illegal monopoly, particularly by obstructing sellers on its platform from offering products at lower prices elsewhere. Joined by 17 state attorneys general, the FTC filed the lawsuit in a federal court in Seattle after a thorough four-year investigation.

Both Amazon and the FTC declined to comment on the matter. The FTC seeks a permanent injunction to halt what it considers unlawful conduct by Amazon. Potential remedies in antitrust cases may involve divesting a portion of the company's business. Amazon, on the other hand, moved to dismiss the suit in December, contending that the FTC misinterpreted common retail practices as anticompetitive behaviour and failed to demonstrate harm to consumers.

In response to Amazon's motion to dismiss, the FTC urged Judge John Chun to reject it, asserting that the government has adequately outlined Amazon's monopolistic practices and how it unlawfully maintains its dominance, thereby benefiting itself while detrimentally affecting its customers. Among the allegations, the FTC claims that Amazon employed various illicit tactics to bolster its profits, including using an algorithm dubbed 'Project Nessie' to drive up prices paid by US households by over $1 billion. Amazon allegedly employed 'Project Nessie' to identify products for which it predicted other online retailers would follow its price hikes, thereby extracting significant sums from consumers.

Amazon refuted the FTC's characterisation of the pricing tool, stating that it ceased using it several years ago and that it was implemented to prevent unsustainable price drops resulting from its price-matching efforts.

(With Reuters inputs)

Updated 12:40 IST, February 14th 2024