FTC sues Amazon over illegal monopoly power.
OAN’s Sophia Flores
12:07 PM – Tuesday, September 26, 2023
The Federal Trade Commission (FTC) and 17 state attorneys general have filed an antitrust lawsuit against the E-commerce company, Amazon.
On Tuesday, the FTC and the 17 state attorneys general accused Amazon of illegally maintaining its monopoly power to “inflate prices, degrade quality, and stifle innovation for consumers and business.”
The states that joined the FTC lawsuit were:
- Connecticut
- Delaware
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- New Jersey
- New Hampshire
- New Mexico
- Nevada
- New York
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- Wisconsin
“Our complaint lays out how Amazon has used a set of punitive and coercive tactics to unlawfully maintain its monopolies,” FTC Chair Lina Khan said in a statement. “The complaint sets forth detailed allegations noting how Amazon is now exploiting its monopoly power to enrich itself while raising prices and degrading service for the tens of millions of American families who shop on its platform and the hundreds of thousands of businesses that rely on Amazon to reach them.”
Additionally, the lawsuit alleges that the world’s largest online retailer is operating without competition in two markets, which in turn is allowing the company to conduct “monopolistic practices.”
However, Amazon released a counterstatement after the suit was announced, calling the legal action wrong and accusing the FTC of losing focus of its original mission.
“Today’s suit makes clear the FTC’s focus has radically departed from its mission of protecting consumers and competition,” Amazon said. “The practices the FTC is challenging have helped to spur competition and innovation across the retail industry, and have produced greater selection, lower prices, and faster delivery speeds for Amazon customers and greater opportunity for the many businesses that sell in Amazon’s store.”
The announcement follows a separate legal action taken against Amazon by the FTC earlier this year.
In June, the E-commerce company was accused of utilizing deceitful tactics in order to trick millions of customers into enrolling into its Prime subscription service.
Stay informed! Receive breaking news blasts directly to your inbox for free. Subscribe here. https://www.oann.com/alerts
with Stew Peters
with Angela Morabito
with Harrison Tinsley
with Dr. Pete St. Onge
LONDON (Reuters) -The European Commission launched an investigation on Wednesday into whether to impose punitive tariffs to protect European Union automakers against…
By David Shepardson WASHINGTON (Reuters) – The U.S. Senate’s top Democrat is bringing U.S. technology leaders including Tesla CEO Elon Musk, Meta…
By John Revill ZURICH (Reuters) – ABB is spending $280 million on a new robotics factory in Sweden, the Swiss engineering and…
PARIS (Reuters) – French Europe Minister Laurence Boon on Wednesday welcomed an anti-subsidy investigation into Chinese electric vehicles launched by the EU…
rnrn
How does Amazon defend itself against the antitrust lawsuit and what are their arguments in favor of their practices in the retail industry
Amazon Faces Antitrust Lawsuit by FTC and 17 State Attorneys General
On Tuesday, the Federal Trade Commission (FTC) and 17 state attorneys general filed an antitrust lawsuit against e-commerce giant Amazon. The lawsuit accuses Amazon of illegally maintaining its monopoly power, resulting in inflated prices, degraded quality, and stifled innovation for consumers and businesses.
The states that joined the FTC lawsuit include Connecticut, Delaware, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New Hampshire, New Mexico, Nevada, New York, Oklahoma, Oregon, Pennsylvania, Rhode Island, and Wisconsin.
FTC Chair Lina Khan emphasized the allegations against Amazon, stating, “Our complaint lays out how Amazon has used a set of punitive and coercive tactics to unlawfully maintain its monopolies. The complaint sets forth detailed allegations noting how Amazon is now exploiting its monopoly power to enrich itself while raising prices and degrading service for the tens of millions of American families who shop on its platform and the hundreds of thousands of businesses that rely on Amazon to reach them.”
The lawsuit also claims that Amazon operates without competition in two markets, enabling the company to engage in monopolistic practices. This lack of competition allegedly allows Amazon to control prices and limit choices in the market.
Following the announcement of the lawsuit, Amazon released a counterstatement, dismissing the legal action as wrong and accusing the FTC of losing focus on its original mission. Amazon argues that the practices being challenged by the FTC have actually fostered competition and innovation in the retail industry. According to Amazon, these practices have led to greater selection, lower prices, faster delivery speeds for customers, and increased opportunities for businesses that sell on its platform.
The outcome of this antitrust lawsuit against Amazon could have far-reaching implications for the e-commerce industry and competition in online retail. As the world’s largest online retailer, Amazon’s dominance has raised concerns about its impact on smaller businesses and consumers. The lawsuit seeks to address these concerns and hold Amazon accountable for its alleged anticompetitive behavior.
It remains to be seen how the legal battle between Amazon and the FTC, along with the support of 17 state attorneys general, will unfold. As the case progresses, it will shed light on the extent of Amazon’s market power and the potential consequences of its practices for the broader marketplace.
" Conservative News Daily does not always share or support the views and opinions expressed here; they are just those of the writer."
