Amazon and FTC Face Off in Seattle Court Over Monopoly Allegations

Amazon and the Federal Trade Commission (FTC) met in a federal court on Friday to outline the economic framework of the government’s antitrust case against the e-commerce giant. The hearing, commonly referred to as “Economics Day,” served as a platform for both sides to present their views on monopoly power, market competition, and the evidence the court should consider, according to The Seattle Times.

The FTC and 19 states filed a lawsuit against Amazon in 2023, accusing the company of using anticompetitive tactics to maintain a monopoly. The agency claims Amazon prioritizes its own products over competitors, penalizes third-party sellers that offer lower prices elsewhere, and pressures sellers into using its fulfillment services at a high cost. Per The Seattle Times, the FTC argues that these strategies harm competition and limit consumer choice.

Amazon has rejected the allegations, stating that its policies ultimately benefit consumers by keeping prices low and supporting small businesses that sell on its platform. The company contends that the FTC is misrepresenting its business practices and failing to consider the broader retail landscape, which includes competitors like Walmart, Target, and local retailers.

Related: Apple and Amazon Avoid Mass Lawsuit in UK Over Alleged Collusion

Defining Amazon’s Market Power

A key issue in the case is how Amazon’s market is defined. According to The Seattle Times, the FTC has identified two primary markets where it believes Amazon holds a monopoly: online superstores and online marketplace services. The first category includes businesses that offer a wide range of products and aim to become the go-to shopping destination for consumers. The second focuses on platforms that facilitate third-party sellers’ access to online shoppers.

However, Amazon disputes these definitions, arguing that it competes in a much larger retail market that includes both online and physical stores. The company maintains that consumers have many alternatives and that its dominance is overstated by the FTC.

Friday’s hearing was designed to set the stage for expert economic testimony in the coming months. The next phase of the case will include input from economists who will analyze the competitive landscape and the impact of Amazon’s business practices.

Looking Ahead

The trial is scheduled for October 2026, leaving ample time for both parties to build their arguments. As the case progresses, the court’s interpretation of Amazon’s market power and competitive behavior will be critical in determining whether the company has violated antitrust laws.

Source: The Seattle Times