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Amazon.com Inc. won a partial dismissal of a lawsuit filed by the U.S. Federal Trade Commission (FTC) alleging that it maintained illegal monopolies in online marketplaces. The decision by a federal court in Seattle on Monday was issued under seal, leaving specific details unclear. However, some claims against Amazon will proceed to trial.
The FTC accuses Amazon of employing anti-competitive tactics to dominate the online superstore and marketplace sectors. Amazon asked for a dismissal of the case in December, arguing that the FTC had not shown evidence of consumer harm.
In its original complaint last year, the FTC alleged that Amazon used an algorithm that increased prices paid by U.S. households by more than $1 billion. Amazon countered by stating in court documents that it had stopped using the algorithm in 2019.
Judge's Decision and Trial Proceedings
U.S. District Judge John Chun's sealed ruling partially granted Amazon’s motion to dismiss. The FTC will be allowed to continue pursuing any claims that were not permanently dismissed. Additionally, Judge Chun ruled that the case would be split into two parts, denying Amazon’s bid to consolidate the FTC’s evidence and proposed remedies into a single trial.
Neither the FTC nor Amazon immediately responded to requests for comment regarding the ruling.
FTC’s Allegations and Amazon’s Defense
The FTC claims that Amazon hampers competition by pushing sellers to use its advertising and fulfillment services. Amazon argues that its policies, including price-matching and Prime shipping, benefit consumers and are part of efforts to compete with thousands of online and brick-and-mortar retailers.
Broader Antitrust Context
The case is one of several significant lawsuits in which the FTC and the Department of Justice are taking on Big Tech. Meta Platforms (formerly Facebook) and Apple face separate lawsuits, while Google is defending against two lawsuits, including one over alleged anti-competitive behavior in the search engine market.
Impact on FTC Chair Lina Khan
The Amazon lawsuit is particularly significant for FTC Chair Lina Khan, who has been a vocal critic of the company's power. In a 2017 academic article, Khan argued that Amazon's structure and business practices pose anti-competitive concerns that have escaped antitrust scrutiny.
