Digging Into The Details Of The Amazon Antitrust Lawsuit

Anyone who’s bought anything via the internet over the past decade knows how ubiquitous Amazon has become, but has it actually crossed the line into monopolizing the industry? Let’s take a closer look at a new lawsuit filed by the federal government and you can draw your own conclusions.

Exploring the claims

A total of 17 states have joined the Federal Trade Commission in taking the company to court over antitrust claims that, if upheld by a judge, could result in breaking Amazon up into a number of smaller businesses.

The lawsuit was first filed late last month and includes nearly two dozen separate charges, including violations of state laws and unfair practices. According to FTC Chair Lina Khan, the behavior has made Amazon rich at the expense of competitors and consumers.

“If we succeed, competition will be restored and people will benefit from lower prices, greater quality [and] greater selection as a result,” she said.

“The stakes are high”

At this point, there’s no way to predict how the case will end — and Khan’s acknowledgment that “the stakes are high” might be an understatement. If Amazon emerges victorious, it could set a precedent that would make it more difficult to hold monopolies accountable in the future.

But the FTC and others involved in the suit think it’s a risk worth taking.

Sen. Amy Klobuchar (D-MN) has called for antitrust suits against Big Tech firms in the past and accused Amazon of using its influence “to increase prices, preference their own products and services, and harm small businesses.”

Unsurprisingly, Amazon sees it differently. Executive David Zapolski said: “If the FTC gets its way, the result would be fewer products to choose from, higher prices, slower deliveries for consumers, and reduced options for small businesses.”

Chris Agee October 5th, 2023

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