The allegations against Amazon are significant. The FTC and state attorneys general assert that Amazon employs unfair practices to maintain its monopoly power. Their complaint contends that Amazon strategically prevents rivals and third-party sellers from undercutting its prices. In essence, this ensures that Amazon remains the go-to source for the most affordable options. However, these tactics allegedly come at a high cost — “degrading quality for shoppers, overcharging sellers, stifling innovation, and thwarting competitors.”
FTC Chair Lina M. Khan underscored the significance of these allegations by articulating that the complaint provides a comprehensive account of how Amazon is allegedly utilizing its monopolistic influence to enhance its own gains while simultaneously increasing prices and diminishing the quality of service experienced by the millions of American families who utilize its platform and the numerous businesses that depend on Amazon to connect with their customers. The current legal action aims to hold Amazon accountable for these practices and reinstate the notion of genuine, equitable competition that may have been compromised.
