FTC continues to investigate Amazon

The Federal Trade Commission (FTC) has been conducting investigations into Amazon and its business practices since 2019. The FTC is exploring potential abuses of power in online marketplaces, breaches of consumer privacy related to Ring cameras and Alexa, and Amazon’s decision to purchase iRobot, a leading robot vacuum maker. Chairman Rita Khan, a critic of big tech and author of a 2017 academic paper advocating for better regulation of Amazon, is leading the agency. While Amazon is protected from local anti-trust lawsuits in Washington, D.C., the upcoming federal lawsuit in California poses a considerable challenge to the global company.

The FTC is currently investigating Amazon’s privacy practices related to Ring cameras, security systems, Alexa and children’s online privacy. The agency is also conducting deceptive advertising investigations into Amazon’s “Amazon Choice” label and the company’s bundling services though Amazon Prime subscription business, which could be considered anticompetitive. The agency is now considering whether to contest Amazon’s $1.7 billion acquisition of iRobot.

The FTC is trying to take on a complicated and multilayered company like Amazon, and its lack of execution so far highlights the difficulties the agency is facing. While Amazon settled a previous lawsuit brought upon by the FTC, it won a recent lawsuit brought upon by the agency to block Meta’s acquisition of its popular virtual reality app. Insiders and observers say that the FTC is under tremendous pressure to successfully pursue anti-trust lawsuits against Amazon and that the agency is choosing its cases with much discretion.

As of now, the exact timing of any legal incidents or settlements is uncertain. Officials for the FTC and Amazon have declined to comment on the matter.

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