The US Federal Trade Commission (FTC) and 17 state attorneys general filed a lawsuit against Amazon and accused the company of “using a set of interlocking anti-competitive and unfair strategies to illegally maintain its monopoly power.” This caused the company’s shares to fall on Wall Street.
“The FTC and its state partners say that Amazon’s actions allow it to prevent its rivals and sellers from lowering pricesdegrade quality for buyers, overcharge sellers, stifle innovation and prevent rivals from competing fairly against Amazon,” the US agency reported in a statement.
Following the news, Amazon shares fell 4% on Wall Street. According to the regulator, by stifling competition in price, product selection and quality, and preventing current or future rivals from attracting a critical mass of buyers and sellers, Amazon ensures that no current or future rivals can threaten its dominance.
“The lawsuit presents detailed allegations that point out how Amazon is now exploiting its monopoly power to enrich itself while raising prices and degrading service for tens of millions of American families who buy on its platform and the hundreds of thousands of companies that depend on Amazon to reach them. “Today’s lawsuit seeks to hold Amazon accountable for these monopolistic practices and restore the lost promise of free and fair competition,” said FTC Chair Lina M. Khan.
For his part, John Newman, deputy director of the FTC’s Bureau of Competition, said that “Amazon is a monopolist that uses its power to raise prices on American buyers and charge sky-high fees to hundreds of thousands of online sellers.”
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