The United States has decided to sue the e-commerce giant, Amazon. As reported by the New York Times, in fact, the Federal Trade Commission and 17 states have filed a lawsuit accusing Jeff Bezos’ company of illegally stifling competition. In their opinion, according to what emerged, Amazon would be illegally pursuing a monopoly on sectors of online retail, effectively putting traders in hot water and favoring their own services. According to the NYT, this is the government’s “biggest challenge to the e-commerce giant”.
The Federal Trade Commission’s accusations
According to the government agency for competition and consumer protection and the attorneys general of the various states, including that of New York, Amazon would have prevented merchants present on the platform from offering lower prices elsewhere and would also have forced them, in order to be able to be included in the Prime package, to use its own logistics service for shipping the products. Furthermore, these practices would have led to a deterioration in the quality of consumer spending, according to the US authorities, by increasing prices and reducing competition. “The lawsuit seeks to hold Amazon to account for these monopolistic practices and restore the lost promise of free and fair competition,” said Lina Khan, chair of the Federal Trade Commission.
“The lawsuit filed today makes it clear that what the Federal Trade Commission is focused on is far from what its mission should be, which is to protect consumers and competition. The practices challenged by the FTC have helped spur competition and innovation throughout the retail industry and have resulted in greater selection, lower prices and faster shipping for Amazon customers, as well as greater opportunities for the many businesses that sell on Amazon.” This is the thought, released in an official note, by David Zapolsky, senior vice president, Global public policy and General counsel of Amazon, in response to the lawsuit filed today by the US Antitrust. “If the Federal Trade Commission were to win, the result would be fewer product choices, higher prices, slower deliveries to consumers, and fewer options for small businesses,” Zapolsky said. “In short, the exact opposite of what the antitrust law requires. The lawsuit filed today by the FTC is wrong in fact and law and we look forward to getting to court,” he concluded.