{"id":2054288,"date":"2023-10-03T18:28:01","date_gmt":"2023-10-03T22:28:01","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/ftc-antitrust-lawsuit-against-amazon-alleges-company-used-internal-algorithm-to-raise-prices\/"},"modified":"2023-10-03T18:31:38","modified_gmt":"2023-10-03T22:31:38","slug":"ftc-antitrust-lawsuit-against-amazon-alleges-company-used-internal-algorithm-to-raise-prices","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/ftc-antitrust-lawsuit-against-amazon-alleges-company-used-internal-algorithm-to-raise-prices\/","title":{"rendered":"FTC sues Amazon, claims internal algorithm hiked prices."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fftc-antitrust-lawsuit-against-amazon-alleges-company-used-internal-algorithm-to-raise-prices%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2054288&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><blockquote>\n<h2>FTC Lawsuit Alleges Amazon Used Unfair Algorithmic Pricing Tool to Maintain \u200cMonopoly<\/h2>\n<p>Partially redacted portions \u2063of the Federal Trade Commission\u2019s (FTC) <a href=\"https:\/\/www.dailywire.com\/news\/ftc-launches-antitrust-suit-against-amazon-over-illegal-monopoly-officials-say\" target=\"_blank\" rel=\"noopener\">antitrust lawsuit<\/a> against Amazon\u2062 allege the company used an internal algorithmic pricing tool described as an \u201cunfair method of competition\u201d to test how much it \u2064could\u2062 raise prices so competitors would follow.<\/p>\n<p>FTC officials and\u200b 17 \u200dstate attorneys \u2063general \u2062sued Amazon last week for allegedly using \u201cinterlocking \u200band anticompetitive and unfair\u201d strategies to maintain its monopolistic power over current and future rivals.<\/p>\n<p>The <a href=\"https:\/\/www.ftc.gov\/system\/files\/ftc_gov\/pdf\/1910129AmazoneCommerceComplaintPublic.pdf\" target=\"_blank\" rel=\"noopener\">172-page lawsuit<\/a> details\u2064 a number of examples accusing the\u2063 American multinational company of raising consumer prices across retail, including a system called\u2062 \u201cProject Nessie,\u201d\u200c which Amazon allegedly stopped \u2063using in 2019 for unknown reasons.<\/p>\n<p>Sources \u2062familiar\u2064 with \u200bthe complaint <a href=\"https:\/\/www.wsj.com\/business\/retail\/amazon-used-secret-project-nessie-algorithm-to-raise-prices-6c593706?mod=hp_lead_pos2\" target=\"_blank\" rel=\"noopener\">told<\/a> The Wall Street Journal that the algorithm allegedly \u201chelped Amazon improve \u2064its\u200b profit on items\u200c across shopping categories, and because of the power the company has in e-commerce, led competitors to raise their prices and charge customers \u200bmore,\u201d as \u200dthe outlet reported.<\/p>\n<p>The Journal \u200creported that the algorithm would return the item to its standard price point if competitors\u200b didn\u2019t match Amazon\u2019s prices.<\/p>\n<p>\u201cIn a competitive world, Amazon\u2019s\u2063 decision\u200b to raise \u2063prices and degrade services would create an\u2062 opening for rivals and potential\u2062 rivals to attract business, gain\u200d momentum, and grow,\u201d the lawsuit reads. \u201cBut Amazon has engaged in an unlawful monopolistic \u2064strategy to\u200c close off that possibility.\u201d<\/p>\n<p>According to the lawsuit, the\u2064 FTC estimated a redacted amount had been \u201cextracted from American \u2064households\u201d by the system, but one source told the \u2064Journal that Amazon made over $1 billion \u200bin revenue using Project Nessie.<\/p>\n<p>FTC\u200b spokesman Douglas Farrar declined to comment on the redacted portions in the complaint but called on Amazon to remove the blocked information.<\/p>\n<p><b><a href=\"https:\/\/onelink.to\/dwapp\" target=\"_blank\" rel=\"noopener noreferrer\" aria-describedby=\"sk-tooltip-9096\" data-saferedirecturl=\"https:\/\/www.google.com\/url?q=https:\/\/onelink.to\/dwapp&#038;source=gmail&#038;ust=1696011031102000&#038;usg=AOvVaw1725QljG4qoXJl_mG2Blr2\">CLICK HERE TO GET THE DAILYWIRE+ APP<\/a><\/b><\/p>\n<p>\u201cWe once again call on Amazon to move swiftly to remove the redactions and allow the American public\u200d to see the full \u200bscope of what we allege are their illegal \u200cmonopolistic practices,\u201d Farrar told the\u200c Journal.<\/p>\n<p>David Zapolsky,\u200c <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/senate-confirms-kathleen-hicks-as-deputy-defense-secretary\/\" title=\"Senate Confirms Kathleen Hicks as Deputy Defense Secretary\">senior vice president<\/a> of Amazon\u2019s <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/these-woke-companies-paying-for-womens-abortions-also-playing-a-role-in-chinas-human-rights-abuse\/\" title=\"These Woke Companies Paying for Women\u2019s Abortions Also Playing a Role in China\u2019s Human Rights Abuse\">global public policy<\/a> and general counsel, responded \u200cto the complaint \u200dlast week, saying the federal agency \u201cis wrong on the facts and \u200bthe law\u201d and has\u2062 \u201cradically departed\u201d from\u200b its original purpose to <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/ftc-antitrust-lawsuit-against-amazon-alleges-company-used-internal-algorithm-to-raise-prices\/\" title=\"FTC sues Amazon, claims internal algorithm hiked prices.\">enforce federal consumer protection laws<\/a> and antitrust laws.<\/p>\n<p>\u201cThe FTC has it\u2063 backwards and if they were successful in this lawsuit, the\u2063 result would be anticompetitive and anti-consumer because we\u2019d have to stop \u2064many of the \u200bthings we do to offer and highlight low prices\u2014a\u200c perverse result \u200cthat would be directly opposed \u2064to the goals of antitrust law,\u201d Zapolsky\u200d <a href=\"https:\/\/www.aboutamazon.com\/news\/company-news\/amazon-ftc-antitrust-lawsuit-full-response\" target=\"_blank\" rel=\"noopener\">said<\/a>.<\/p>\n<p>Federal officials announced the major federal lawsuit\u2064 \u2014 led by FTC Chair Lina Khan \u2064\u2014 after the agency voted 3-0 to move forward with\u200b the charges \u200bin the U.S. District Court for the\u2062 Western\u2064 District of \u200cWashington.<\/p>\n<p>\u201cThe complaint sets forth <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/ftc-sues-amazon-for-illegally-maintaining-monopoly-power\/\" title=\"FTC sues Amazon over illegal monopoly power.\">detailed allegations \u200cnoting<\/a> how Amazon is now exploiting its monopoly power to enrich itself while raising prices and\u2064 degrading service for the tens of millions of American families who shop on its platform and the hundreds \u2062of thousands of businesses that rely on Amazon to reach them,\u201d Khan said in a news release.<\/p>\n<p>Khan, a Democrat appointed by President Joe Biden, reportedly garnered\u2064 attention as a law \u200dstudent at Yale University \u2062when she published an influential antitrust and competition law essay targeting Amazon\u2019s\u2062 business practices. But rumors of the FTC going after the online retail \u2062giant\u2063 have been circulating since the\u2063 Trump administration.<\/p>\n<\/blockquote>\n<p> <\/p>\n<h2> What potential implications \u2064could the outcome of\u2064 this lawsuit have on the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/latams-mercadolibre-profits-soars-boosted-by-fintech-division\/\" title=\"Latam\u2019s MercadoLibre profits soars, boosted by fintech division\">e-commerce industry<\/a>\u200b as a\u200d whole<\/h2>\n<p><span>  FTC Lawsuit \u2064Alleges Amazon\u200b Used Unfair Algorithmic Pricing Tool to Maintain \u200cMonopoly<\/p>\n<p>The Federal Trade Commission \u2062(FTC) recently filed \u2063an antitrust lawsuit against\u200c Amazon, alleging that the company manipulated prices using an internal algorithmic pricing tool. The\u200c lawsuit claims that Amazon engaged \u2062in unfair and anticompetitive practices to maintain its\u200d monopolistic power over both \u2064current \u2064and future rivals.<\/p>\n<p>The lawsuit, which spans 172 pages, provides several examples \u200cof\u200d Amazon&#8217;s alleged price manipulation \u2063across the retail sector. \u200cOne specific system \u2063mentioned in the lawsuit is called &#8220;Project Nessie,&#8221; which Amazon \u2063allegedly stopped using in 2019\u2062 for undisclosed reasons.<\/p>\n<p>According to \u2063sources\u200b familiar with the complaint, the\u200b algorithmic \u2062tool\u2062 known as Project Nessie helped Amazon improve its profit margins \u2062by raising \u2062prices on items across different shopping categories. Due to Amazon&#8217;s dominant position in e-commerce, this tactic also compelled\u200c competitors\u2063 to \u2062raise their prices and \u200bcharge customers more, as reported\u200c by The Wall Street Journal.<\/p>\n<p>The algorithm would reportedly revert an item&#8217;s\u2062 price back to its standard level\u2062 if \u2062competitors\u2064 did not match\u200b Amazon&#8217;s prices. This strategy, according to the lawsuit,\u200b created an unlawful environment where rivals and potential competitors \u2062were unable to\u2062 attract business and\u2062 grow.<\/p>\n<p>Although the \u2064specific financial\u2062 impact on American households is redacted \u2064in the lawsuit, the FTC \u200cestimated that a significant amount of \u2062money was taken from them as a result\u2063 of Amazon&#8217;s \u200dpractices. However, The \u2063Wall \u2063Street Journal reported that Amazon made over\u200b $1 billion \u200bin revenue\u200b using Project Nessie.<\/p>\n<p>FTC \u200dspokesperson Douglas Farrar declined to comment on the redacted\u2064 portions of the complaint but called on Amazon to remove the blocked information. This legal action by the FTC highlights the growing concern \u200dregarding Amazon&#8217;s alleged anti-competitive behavior and\u2062 its impact on the retail market.<\/p>\n<p>As \u200dthe\u2064 case unfolds, \u2064it remains to be seen\u200d how Amazon will respond to these\u2062 serious allegations. The outcome\u200b of this lawsuit could have significant implications not only for Amazon \u200bbut also for the broader e-commerce industry.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Partially redacted in the FTC&#8217;s antitrust lawsuit, it is alleged that Amazon employed an unfair algorithmic pricing tool to gauge price increases, aiming to prompt competitors to follow suit. The company faces legal action from FTC officials and 17 state attorneys general for these alleged practices.<\/p>\n","protected":false},"author":429,"featured_media":2054289,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[541],"tags":[],"class_list":["post-2054288","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-daily-wire"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2054288","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/429"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2054288"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2054288\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2054289"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2054288"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2054288"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2054288"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}