Federal Judge Partially Dismisses FTC’s Antitrust Case Against Amazon

A federal judge has partially granted Amazon’s motion to dismiss key aspects of a major antitrust lawsuit brought by the Federal Trade Commission (FTC), according to Courthouse News. In a sealed ruling on Monday, U.S. District Judge John Chun approved parts of Amazon’s request while also ordering that an upcoming trial focus exclusively on determining the company’s liability.

The lawsuit, filed by the FTC and 17 state attorneys general in September 2023, accuses Amazon of creating monopolies and unfairly raising prices through coercive tactics. FTC Chair Lina Khan said at the time that the online retail giant has been using its dominance to inflate prices and degrade service, impacting both consumers and small businesses. The suit aims to hold Amazon accountable and restore fair competition in the marketplace.

In its defense, Amazon filed a motion to dismiss the case in December, arguing that its business innovations have benefited consumers and spurred competition. The company maintains that its practices, including price matching and its efficient delivery system for Prime subscribers, offer significant consumer advantages. According to Amazon, the antitrust case is misguided, as antitrust law is not designed to penalize successful business practices that promote economic growth. Furthermore, the company claims the FTC failed to sufficiently demonstrate any anticompetitive behavior or effects.

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Amazon also contended that the FTC’s state law claims, rooted in consumer protection theories, lacked factual support. The company criticized the commission for attempting to shift the focus of the case from the Sherman Act to the Federal Trade Commission Act, which Amazon argued was an indication of the weakness in the FTC’s original claims.

In February, the FTC filed a motion to bifurcate the case, requesting that it be divided into two phases: the first focusing on liability, and the second addressing potential remedies if Amazon is found liable. Per Courthouse News, Judge Chun agreed with this approach, meaning the October 2026 bench trial will determine Amazon’s legal liability under the Federal Trade Commission Act, the Sherman Act, and relevant state laws.

“By first addressing liability, plaintiffs will be able to present a streamlined case showing how Amazon has violated the law and harmed competition,” the FTC wrote in its motion. The commission believes this separation will allow both sides to present focused arguments while reducing the complexity for the judge and witnesses. If Amazon is found liable, a later conference will be scheduled to discuss potential remedies.

Both parties have until October 14 to submit a joint statement on which sections of the judge’s sealed order should remain redacted in a publicly released version. The FTC must also file an amended complaint by October 31, addressing any claims that were not dismissed with prejudice.

Source: Courthouse News