- The FTC plans to file an antitrust suit against Amazon in the coming weeks, Bloomberg reported.
- It’s expected to focus on allegations that Amazon punishes sellers who don’t use its logistics services.
- Bloomberg reported that FTC head Lisa Khan could seek to restructure Amazon.
The Federal Trade Commission plans to file an antitrust suit against Amazon which could potentially land in the coming weeks, Bloomberg reported, citing documents and three people familiar with the case.
The lawsuit is expected to focus on the allegation that Amazon uses its power to punish third-party sellers on its online marketplace who don’t use the company’s logistics services, including warehousing and shipping, Bloomberg reported.
The FTC has gathered evidence showing that the company disadvantages sellers who choose not to use Amazon’s services, Bloomberg reported. The FTC is also investigating an algorithm that chooses which sellers are given a so-called “Buy Box” on Amazon’s website, which customers can click on to add items to their cart.
Bloomberg noted that it would be the company’s biggest challenge from the FTC to date.
FTC investigators and the office of chair Lisa Khan have been fine-tuning the lawsuit for months, two of the people told Bloomberg. The FTX sent the initial investigation notice to Amazon in June 2019, and two months later it followed up with its first request for records, Bloomberg reporting, citing documents.
Bloomberg reported that the FTC could seek to restructure Amazon.
Amazon and the FTC declined to comment.
The FTC has already filed three cases against Amazon this year, accusing the company of keeping voice recordings from children who used its Alexa speakers, allowing staff and contractors to spy on Ring doorbell and camera users, and duping “millions of consumers” into unknowingly signing up for Prime and deliberately making it hard for them to cancel their subscriptions.
Read the full article here