The FTC accuses Amazon of inflating prices and degrading quality.
September 26, 2023, 12:18 PM
The Federal Trade Commission and 17 state attorneys general filed a lawsuit against Amazon on Tuesday, accusing the company of illegally maintaining its monopoly power “to inflate prices, degrade quality, and stifle innovation for consumers and businesses.”
The major tech firm allegedly deployed illegal business tactics “to stop rivals and sellers from lowering prices, degrade quality for shoppers, overcharge sellers, stifle innovation, and prevent rivals from fairly competing against Amazon,” the FTC said in a statement.
The sheer size of Amazon does not amount to a violation of the law, the FTC said. Rather, the agency’s complaint centers on a set of “far-reaching schemes” that impact hundreds of billions of dollars in sales each year and hundreds of millions of shoppers.
In a statement, Amazon rebuked the allegations, saying the practices at issue have helped fuel innovation rather than stifle it.
“Today’s suit makes clear the FTC’s focus has radically departed from its mission of protecting consumers and competition,” Amazon said. “The practices the FTC is challenging have helped to spur competition and innovation across the retail industry, and have produced greater selection, lower prices, and faster delivery speeds for Amazon customers and greater opportunity for the many businesses that sell in Amazon’s store.”
“The lawsuit filed by the FTC today is wrong on the facts and the law, and we look forward to making that case in court,” the company added.
This is a developing story. Please check back for updates.
