Amazon.com Inc. has achieved a partial dismissal of a U.S. Federal Trade Commission (FTC) antitrust lawsuit alleging illegal monopolistic practices. A federal court in Seattle issued a sealed ruling on Monday, though the specifics of the decision are still unclear. The FTC’s lawsuit accused Amazon of employing anti-competitive strategies to dominate the online retail market.
In December, Amazon requested U.S. District Judge John Chun to dismiss the lawsuit, arguing that the FTC failed to provide evidence demonstrating consumer harm. The FTC claimed that Amazon’s pricing algorithms inflated costs for U.S. households by over $1 billion, although Amazon stated it ceased using the program in 2019.
While Chun’s ruling partially granted Amazon’s motion, the FTC is allowed to pursue claims that were not dismissed. The case will proceed in two phases, with Chun rejecting Amazon’s request to present all evidence in a single trial.
The FTC did not comment on the ruling, and Amazon’s representatives did not respond immediately. In its allegations, the FTC contended that Amazon stifles competition by incentivizing sellers to use its advertising and fulfillment services. Amazon defended its practices, asserting that services like price matching and Prime shipping are beneficial for consumers and demonstrate its competitiveness against numerous online and brick-and-mortar retailers.
This case is part of a broader crackdown on Big Tech by the FTC and U.S. Department of Justice, which includes lawsuits against Meta Platforms and Apple, as well as ongoing cases against Alphabet’s Google. The Amazon case is particularly significant for FTC Chair Lina Khan, known for her advocacy against the market power of large online firms. In 2017, she authored a pivotal academic paper highlighting antitrust concerns regarding Amazon’s business practices.
