By The Federal Trade Commission and 17 states are suing the largest online retailer. On claims that it inflates internet pricing and overcharges vendors.
The e-commerce giant is accuse of abusing its position. In the market to raise prices on and off of its platform. Overcharge vendors, and hinder competition, according to claims made by US regulators and 17 states.
One of the most important legal challenges taken against Amazon in its almost 30-year history. The lawsuit is file on Tuesday, September 26, in federal court in Washington, the state where Amazon is headquartere. The case is the outcome of a years-long investigation into the company’s operations.
Amazon is accuse of breaking both federal and state antitrust laws. According to the Federal Trade Commission and the states that joined the action. They are requesting that a permanent injunction be issue, which would, in their words, stop Amazon. From participating in its illegal behavior and would allow it to loosen its “monopolistic control to restore competition.
The complaint makes claims similar to those made in a different case brought last year by the state of California, accusing the corporation of engaging in anti-competitive tactics by taking actions that discourage sellers from offering lower prices for goods on websites other than Amazon.
According to the lawsuit, Amazon hides listings that competing websites are offering for less money. In addition, it levies large fees to sellers, which forces businesses to boost their pricing on Amazon and other e-commerce platforms in order to remain competitive.
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Utilizing its monopoly to its own financial advantage
Amazon.com Inc., based in Seattle, claimed the FTC was “wrong on the facts and the law” and had strayed from its mandate to safeguard consumers and competition. According to Amazon General Counsel David Zapolsky, “if the FTC gets its way, the result would be fewer products to choose from, higher prices, slower deliveries for customers, and reduced options for small businesses – the opposite of what antitrust law is designed to do.”
