Judge greenlights FTC’s antitrust suit against Amazon

A national justice gave the Federal Trade Commission the greenish airy to prosecute antitrust claims against Amazon, a recently unsealed bid reveals, though immoderate claims nether authorities laws won’t determination forward.

Amazon filed a question to disregard the 2023 lawsuit, which alleges the institution illegally maintains a monopoly by punishing sellers who discount products extracurricular of Amazon and “effectively requires” them to usage its ain fulfillment services for coveted positioning connected the site. Judge John Chun denied Amazon’s attempts to disregard respective national claims that were based connected the FTC Act and the Sherman Act. Chun did contradict immoderate claims that Amazon violated authorities law, the effect of state-level attorneys wide signing onto the suit. But helium gave them a accidental to effort again connected astatine slightest immoderate of those claims.

“We are pleased with the court’s determination and look guardant to moving this lawsuit forward,” FTC spokesperson Douglas Farrar said successful a statement. “The ways Amazon illegally maintains its monopolies and the harm they origin — including suppressed contention and higher prices for shoppers and sellers — volition beryllium connected afloat show astatine trial. This lawsuit yet seeks to pry escaped Amazon’s monopolistic power and reconstruct competition.”

Amazon spokesperson Tim Doyle pointed retired successful a connection that the “early stage” ruling “requires the tribunal to presume each facts alleged successful the ailment are true. They are not.” Doyle said the FTC suit does not accurately relationship for however consumers shop. “Moving guardant the FTC volition person to beryllium its claims successful court, and we’re assured those claims volition not clasp up erstwhile the FTC has to beryllium them with evidence,” Doyle said. “The information is that Amazon’s practices are bully for competition, consumers, and the small- and medium-sized businesses that merchantability successful our store, portion the FTC’s attack would marque buying much hard and costly.”

While this determination means that the FTC volition get the accidental to proceed making its lawsuit successful court, it doesn’t needfully bespeak however the justice volition regularisation based connected the evidence. For example, the justice writes that erstwhile viewing allegations that Amazon forces sellers to usage its services “in the airy astir favorable” to the government, the claims are “plausibly” anticompetitive. But, Chun notes, immoderate pro-competitive concern justifications for its policies “are improper to see astatine this stage” — they’ll go applicable astatine trial.

Like Google’s caller antitrust trials, Chun said the Amazon lawsuit would beryllium bifurcated — meaning he’d lone see remedies if Amazon is recovered liable of the charges.