The U.S. Federal Trade Commission filed a long-awaited antitrust lawsuit against Amazon on Tuesday, accusing the online retail giant of harming consumers by raising prices, in the latest legal action by the U.S. government aimed at breaking the dominance of major technology companies in the online world. The lawsuit was anticipated after years of complaints that Amazon and other tech giants misuse their dominance over search engines, social media, and online retail to become gatekeepers of various sectors of the internet.
This lawsuit, joined by 17 state attorneys general, comes after a four-year investigation and federal lawsuits filed against Alphabet's Google and Meta Platforms' Facebook. The commission stated in a release that it and its government partners believe Amazon's actions allow it to prevent competitors and sellers from lowering prices, resulting in diminished quality for shoppers, increased prices for sellers, stifling innovation, and hindering fair competition with Amazon.
The commission has requested the court to issue a permanent injunction ordering Amazon to cease its illegal conduct. The lawsuit was filed in federal court in Seattle, where Amazon is headquartered. Amazon's shares fell three percent following the news. The company stated that the FTC's lawsuit is misguided and will harm consumers by causing higher prices and delays in product delivery.
Amazon's general counsel, David Zapolsky, explained that "the practices that the FTC objects to have helped stimulate competition and innovation across the retail industry, resulting in increased choices, lower prices, faster delivery for Amazon customers, and greater opportunities for many businesses selling on Amazon's platform."
