Kevin Ross on LinkedIn: DC’s antitrust suit against Amazon is back from the dead (2024)

Three years. That's how long we have to wait until the gavel drops on one of the most anticipated antitrust trials of our time. The FTC's heavyweight lawsuit against Amazon is set for October 2026. Yes, you heard that right – 2026. The charges? Operating an illegal monopoly by strong-arming sellers into uncompetitive practices. Now, here's the kicker: The crux of the FTC's argument hinges on Amazon's alleged suppression of cheaper product listings, effectively cornering both sellers and consumers in a high-priced embrace. But here's where I weigh in: Monopoly or master of efficiency? It's a fine line. Amazon's playbook, while aggressive, has undeniably set the gold standard for e-commerce efficiency and customer satisfaction. However, the question remains – at what cost? In the dynamic chess game of e-commerce, Amazon has been the undisputed king. But this lawsuit could very well force a reevaluation of the rules. Let's face it, the outcome of this trial could redefine the future of online retail, not just for Amazon, but for every player in the game. As we strap in for this long haul to 2026, one thing is certain – the e-commerce landscape is on the brink of a monumental shift. And I, for one, can't wait to see where the chips fall. The countdown begins... Check this out: https://lnkd.in/g4Xy_3TV

Amazon has filed a motion in a federal court seeking to dismiss the Federal Trade Commission's (FTC) antitrust lawsuit against it, arguing that the company's practices are competitive and beneficial to consumers. The FTC, along with 17 state attorneys general, filed the lawsuit alleging that Amazon's business practices are monopolistic and harm both competitors and consumers.Amazon argues that its business practices, such as matching competitor prices and ensuring competitive pricing through its marketplace, are procompetitive and benefit consumers. The company claims that these practices push other retailers to innovate and compete more effectively.Amazon contends that the FTC has not provided evidence that its practices have led to higher prices or reduced output. The company asserts that the FTC's complaint relies on vague allegations and anecdotes, which are insufficient under antitrust lawsAmazon defends its Fulfillment by Amazon service, arguing that it offers sellers a reliable and cost-effective way to ship products, which benefits consumers through faster and more dependable delivery. The company denies that it unfairly ties Prime eligibility to the use of FBAThe FTC's lawsuit includes allegations about Amazon's "Project Nessie," a pricing algorithm used from 2015 to 2019 to raise prices in a way that other retailers would follow. Amazon argues that the use of this algorithm was limited and discontinued, and any claims related to it are outdated and should be dismissedThe motion to dismiss is part of Amazon's broader strategy to counter the FTC's efforts to regulate its market power, a campaign led by FTC Chair Lina Khan, who has long been critical of big tech companies and their influence on the market. The court has yet to rule on Amazon's motion.https://lnkd.in/dfHtTsDm

1

Amazon Must Face D.C.’s Antitrust Lawsuit, Appeals Court Rules An appeals court in Washington, D.C., has revived the district’s antitrust lawsuit against Amazon, alleging that the online retail giant’s pricing policies illegally stifle competition. The District of Columbia Court of Appeals reversed a previous ruling that dismissed the lawsuit, which accuses Amazon of harming competition by restricting suppliers and third-party sellers on its platform.Key Highlights:– Court Ruling: The D.C. Court of Appeals found that the case had merit and should proceed, overturning an earlier dismissal.– Antitrust Allegations: The lawsuit claims Amazon’s practices prevent third-party sellers from offering products at lower prices elsewhere, creating a restrictive and anti-competitive environment.– Impact on Wholesalers: Amazon is also accused of agreements with wholesalers that enforce a minimum profit margin, effectively disincentivizing them from lowering prices.What’s Next:– Legal Battle Continues: Amazon spokesperson Tim Doyle stated that the company disagrees with the ruling and looks forward to defending its pricing policies, which they believe benefit consumers.🔗 Read the full article here: https://lnkd.in/g4_3GAm5#Amazon #Antitrust #Ecommerce #Law #Competition

1

In September, theU.S. Federal Trade Commission kicked off a long-awaitedantitrust battleagainst e-commerce giantAmazon,filing alawsuitalongside a bipartisan group of state attorneys general. Recently, government lawyers unsealed large portions of the case that were initially redacted, revealing key evidence the agency is using against the company.The FTC is accusing Amazon of violatingantitrustlaws by "raising prices for customers across the internet because of a requirement that sellers offer their goods at their lowest price on Amazon.com,"The Wall Street Journalexplained."Amazon is a monopolist," the agency alleged in the filing. "It exploits its monopolies"to enrich itself while harming its customers, "both the tens of millions of American households who regularly shop on Amazon's online superstore and the hundreds of thousands of businesses who rely on Amazon to reach them."Amazon plans on fighting the "misguided lawsuit," which, if successful, would force it to "engage in practices that actually harm consumers and the many businesses that sell in our store," Amazon general counsel David Zapolsky wrote in aresponseto the FTC's complaint. He said those practices would lead to higher prices and less reliable shipping.But those prices are already inflated, since "Amazon has actually quietly been hiking prices for consumers in ways that are not always clearly visible," Lina Khan, the FTC chair, told David Remnick on The New Yorker's podcastThe Political Scene. Amazon's hidden price hikes "can result in consumers paying billions of dollars more than they would if there was actually competition in the market." Khan has had her sights set on the e-commerce giant since before she graduated from law school, where she published "an influential paper about applying antitrust law to Amazon," The New Yorker noted. Not only do consumers pay more, Khan told Remnick, but the company recognizes that its "merchants live in constant fear of Amazon's punishments and punitive tactics."One bombshell allegation in the recently unredacted sections shows that Amazon used a secret algorithm, "Project Nessie," to inflate prices and net $1 billion in excess profits,The Hillreported. Between 2015 and 2019, the company used Project Nessie to raise prices on thousands of products it predicted its smaller online competitors would price-match, allowing Amazon to reap the excess profits without undue risk that consumers could find lower-cost versions elsewhere, the FTC said. Once the higher prices spread from Amazon to rival retailers, Amazon would keep them elevated.

1

1 Comment

US Antitrust Law: The FTC – joined by 17 states – filed the historic complaint against Amazon, alleging it inflates prices and stifles competition in what the agency calls the “online superstore market” and in the field of “online marketplace services”. However, the company arguing the agency is attacking policies that benefit consumers and competition as per post. #competitionlaw #antitrustlaw https://lnkd.in/d7Q3TXMQ

11

In the Federal Trade Commission’s (FTC) monopolization lawsuit against Amazon, the agency alleges that Amazon’s business practices have stifled competition and caused prices to rise. But the FTC’s analysis is based on arguing that the firm competes in two artificially narrow markets: the “online superstore market” for consumers and “online marketplace services market” for third-party sellers. Through these narrow market definitions, the FTC seems to completely miss the healthy competitive dynamics apparent across retail. https://lnkd.in/erf2n6gX

1

US Antitrust Law: FTC monopolization lawsuit against Amazon: Determination of Relevant market- crucial:In the Federal Trade Commission’s (FTC) monopolization lawsuit against Amazon, the agency alleges that Amazon’s business practices have stifled competition and caused prices to rise. But the FTC’s analysis is based on arguing that the firm competes in two artificially narrow markets: the “online superstore market” for consumers and “online marketplace services market” for third-party sellers. Through these narrow market definitions, the FTC seems to completely miss the healthy competitive dynamics apparent across retail. #competitionlaw #antitrustlaw https://lnkd.in/gHqzWe-f

9

US court schedules trial for October 2026 in FTC antitrust case against Amazon https://ift.tt/YgkDZ8M US court schedules trial for October 2026 in FTC antitrust case against AmazonOn September 26, after much anticipation, the consumer protection agency launched a long-awaited antitrust case against Amazon. The complaint accuses the online retailer of running an unlawful monopoly, partially due to vendors on its marketplace offering goods more cheaply on other platforms. was resisting attempts to appear.The Federal Trade Commission filed an antitrust complaint against Amazon.com, and a US federal court on Tuesday scheduled a hearing for October 2026.On September 26, after much anticipation, the consumer protection agency launched a long-awaited antitrust case against Amazon. The complaint accuses the online retailer of running an unlawful monopoly, partially due to vendors on its marketplace offering goods more cheaply on other platforms. was resisting attempts to appear.Following a four-year investigation, 17 state attorneys general jointly filed the complaint in federal court in Seattle.The FTC and Amazon declined to comment.The government requested a permanent injunction from US District Judge John Chun compelling Amazon to cease the illegal activity. One of the many possible outcomes in antitrust litigation is to compel a corporation to sell a portion of its operations.In December, Amazon urged the court to dismiss the complaint, claiming that the FTC had failed to acknowledge the damage it was causing to customers and had mistaken "normal retail practices" for anti-competitive behavior.Enriches himself while delivering." The FTC requested last week that Chun reject Amazon's motion, claiming the government "shows how Amazon is a monopolist and how Amazon improperly preserves its monopolistic position, affecting its consumers."According to the FTC, Amazon used a number of unethical tactics to boost earnings, such as an algorithm that defrauded American families out of over $1 billion."Amazon used Project Nessie to extort more than a billion dollars directly that extends from the pocketbooks of Americans," the Federal Trade Commission said. Amazon, which has one billion items in its online superstore, developed an internal secret algorithmic code known as "Project Nessie" to identify specific products for which it is predicted that other retailers on the internet will increase the prices of Amazon.The FTC "grosslymisses" the pricing tool, according to Amazon, which ceased using it years ago. The business said that the technology was "used to try to stop our price matching," which led to "abnormal results where prices fell so low the fact that they were unsustainable." https://ift.tt/uzY45EP news February 14, 2024 at 08:12AM

New "Technology" post from THE HILL: Amazon files motion to dismiss FTC antitrust case Amazon asked a judge to dismiss the Federal Trade Commission’s (FTC) antitrust case against the e-commerce giant on Friday, arguing that the company engages in legal competitive behavior that benefits consumers.“Amazon promptly matches rivals’ discounts, features competitively priced deals rather than overpriced ones, and ensures best-in-class delivery for its Prime subscribers,” the company argued in Friday’s filing.“Those practices—the targets of this antitrust Complaint— benefit consumers and are the essence of competition,” it added.The FTC and a bipartisan coalition of 17 other states sued Amazon in late September, alleging that it used anti-competitive measures that punish sellers and deter other online retailers from offering lower prices.It also accused the e-commerce giant of conditioning a product’s eligibility for Prime on the seller’s use of its fulfillment service, making it more expensive for sellers to offer products on other platforms.In previously redacted portions of the lawsuit made public in early November, the FTC also alleged that Amazon made more than $1 billion in excess profits by employing a secret algorithm codenamed “Project Nessie.”Project Nessie, which Amazon used between 2015 and 2019, was able to raise prices on and off the platform by predicting whether other online stores would follow an Amazon price hike, the FTC said.However, Amazon argued on Friday that the activities the agency has deemed anti-competitive are “common retail practices that presumptively benefit consumers.”The company suggested that its pricing mechanism, which automatically matches any price change by another online store or seller, is a standard discounting tactic encouraged by antitrust laws.The FTC had described the mechanism as an “anti-discounting tactic” that deterred other sellers from attempting to compete with Amazon on price.Amazon also disputed the allegations that it conditions Prime eligibility on the use of its fulfillment service. However, it noted that even if it were true, “such seller recommendations—made to protect trust in a retailer’s brand and to deliver products to consumers with unprecedented speed, service, and reliability—are presumptively procompetitive.”https://bit.ly/41dOWU8

The online retailer Zulily has initiated a lawsuit against the e-commerce giant Amazon. This move comes amidst various antitrust allegations and legal challenges that Amazon has faced from various entities, including theFederal Trade Commission (FTC)and 17 states.The current legal landscape for Amazon is fraught with accusations of monopolistic practices and anti-competitive behavior. The FTC and several state attorneys general have accused Amazon of stifling competition and engaging in practices that harm consumers and small businesses alike.These allegations suggest that Amazon has been using its dominant market position to suffocate rivals, leading to increased costs for sellers on its platform and potentially higher consumer prices. Read full article here:https://lnkd.in/gU4EsRKZ#retail #fashion #businessnews #fashionindustry #retailnews #fashionnews #ecommerce #dtc #consumertrends #trends

2