It went bad for Amazon: the company is being sued by the US Court for violating Antitrust Law

It went bad for Amazon! The United States Federal Trade Commission, known as the FTC, has filed a long-awaited antitrust lawsuit against Amazon.com, alleging that the online retail giant has harmed consumers with higher prices.

This is not the first time that lawsuits like this have been filed. The decision came after years of complaints that Amazon.com and other big technology companies abuse their dominant positions in search engines, social networks and e-commerce to increase their profits.

The action has the support of 17 state attorneys general and comes after a four-year investigation and federal lawsuits filed against Google and Facebook. Companies were also targeted by the Antitrust Law, that is, the law of free competition, in an action promoted by the government.

Image: Suno/Reproduction

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The FTC alleges that Amazon prevents other competitors from offering lower prices, hurting quality for consumers. Furthermore, it burdens sellers, inhibits innovation, and prevents fair competition against Amazon itself.

The FTC is seeking a permanent injunction in federal court in Seattle, where Amazon is headquartered. In contrast, Amazon shares fell about 3% on the stock market after the news broke.

However, Amazon is disputing the company’s claims FTC and reinforces that the action harms consumers by resulting in higher prices and slower deliveries. The company conveniently argues that its practices encourage competition and innovation in the retail industry.

Meanwhile, Lina Khan, chair of the FTC, argues that Amazon used illegal tactics to fend off companies that could challenge its monopoly. This was detrimental to both consumers who shop on the platform and sellers who use it to reach consumers.

Additionally, the Department of Justice sued the Google twice, once under the Trump administration related to the search engine business, and again due to advertising technology under the Biden administration. The FTC also sued Facebook during the Trump administration, and the lawsuit continues under the Biden administration.

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