As the Washington Post comments, the lawsuit marks a historic political test for one of the world’s most influential companies.
The Federal Trade Commission (FTC) and attorneys general of 17 states filed Tuesday lawsuit against Amazonan expected move that seeks to prevent the US giant from abusing its powers to raise prices for shoppers and impose high fees on businesses selling on its platform.
As the Washington Post comments, the lawsuit, filed in the District Court of Western Washington, marks a historic political test for one of the companies most influential in the world – as well as regulators who have promised for years to rein in its alleged monopolistic practices.
The FTC alleges that Amazon engaged in illegal conduct both in its online shopping and in many of the services it offers to third-party sellers, allowing the company to extract “monopoly rents from everyone who offers it,” according to a statement .
That means Amazon can boost its own products in search results against better-quality ones and charge sellers who rely on the tech giant expensive fees to stay with it.
“Amazon is a monopoly and exploits its monopolies in ways that leave buyers and sellers paying more for worse service,” FTC Deputy Chairman Lina Hahn told US reporters at a briefing.
In response, David Zapolsky, Amazon’s senior vice president of global public policy and general counsel, commented that the lawsuit is “wrong in fact and in law.”
“Today’s lawsuit makes clear that the FTC’s focus has shifted radically away from its mission to protect consumers and competition”, he argued.
“If the FTC succeeds in its goals, the result would be fewer products to choose from, higher prices, slower deliveries for consumers, and reduced options for small businesses – the opposite of what antitrust law is designed to do,” he added. .
Source: Skai
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