Unveiling the Secret Algorithm: Project Nessie
The complaint itself is certainly intriguing, but it’s the hidden insights that make it all the more captivating. Among the redacted details lies the revelation of a clandestine algorithm named “Project Nessie.” This algorithm, according to The Wall Street Journal, was employed by Amazon to ascertain just how high it could increase prices while still remaining below competitors. If rival companies raised their prices, Amazon would follow suit. Conversely, if competitors maintained their prices, the algorithm would automatically revert Amazon’s price to its initial, lower level.
The fascinating part, however, is that these critical details are obscured behind a veil of redactions. Sources revealed to the Journal that Amazon allegedly generated over $1 billion through the usage of Project Nessie. The exact reasons for Amazon’s discontinuation of this algorithm in 2019 remain a mystery.
“As a result, Amazon has successfully taught its rivals that lower prices are unlikely to result in increased sales — the opposite of what should happen in a well-functioning market,”
the FTC asserts.
While Project Nessie is just one facet of the accusations brought forth by the FTC, it’s undoubtedly a headline-grabbing revelation in this ongoing legal saga.
