A PYMNTS Company

Amazon Defends Against FTC’s Antitrust Lawsuit, Claims Consumer Benefits

By  |  December 10, 2023
Amazon Defends Against FTC’s Antitrust Lawsuit, Claims Consumer Benefits

Amazon’s legal team has filed a motion requesting the dismissal of the Federal Trade Commission’s (FTC) landmark antitrust lawsuit against the e-commerce giant. The move comes more than two months after the FTC, joined by 17 states, filed a historic complaint alleging that Amazon engages in anti-competitive practices that inflate prices and stifle competition in the “online superstore market” and the field of “online marketplace services.”

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    Amazon, headquartered in Seattle, contends that the FTC is targeting policies that ultimately benefit consumers and foster healthy competition. In a 31-page filing submitted to a federal court in Washington state, Amazon refutes the claims made by the FTC, arguing that the conduct labeled as anti-competitive by the agency consists of common retail practices that are in the best interest of consumers.

    The FTC’s complaint, filed in September, accuses Amazon of engaging in anti-competitive measures that discourage third-party sellers from offering lower prices for products on non-Amazon platforms. The agency alleges that Amazon strategically buries listings with lower prices on other sites while simultaneously increasing fees for merchants and driving up prices for products on its own platform. Furthermore, the complaint asserts that Amazon maintains seller dependence on its services, such as logistics and delivery, contributing to the company’s substantial annual revenue.

    Read more: What’s Going On Between The FTC And Amazon?

    In response, Amazon asserts that the practices highlighted by the FTC, which are characterized as anti-competitive, are actually common in the retail industry and benefit consumers. The company argues that it promptly matches competitors’ discounts, features competitively priced deals, and ensures efficient delivery for its Prime subscribers.

    “Those practices — the targets of this antitrust Complaint — benefit consumers and are the essence of competition,” Amazon stated in its filing.

    Additionally, Amazon refutes allegations that it conditions Prime eligibility, which includes fast shipping benefits, on whether sellers use its fulfillment service, Fulfillment by Amazon. The company contends that such practices contribute to a positive consumer experience and enhance competition in the marketplace.

    As the legal battle unfolds, industry experts anticipate a protracted and closely watched case that could set precedents for the regulation of e-commerce and online marketplaces. The outcome of this dispute will likely have far-reaching implications for how major online platforms conduct business in the future.

    Source: Finance Yahoo