Amazon CEO Andy Jassy delivered a speech at the GeekWire Summit in Seattle on October 5, 2021. The anticipation of an antitrust lawsuit against Amazon by the Federal Trade Commission (FTC) has been growing, as reported by Bloomberg on Thursday. The focus of the complaint is expected to be Amazon’s online marketplace and how the company utilizes its power to favor merchants who use its logistics services. Bloomberg’s report is based on reviewed documents and information from three unidentified sources familiar with the case. The filing of the complaint is likely to take place in the coming weeks.
This lawsuit holds significant importance for FTC Chair Lina Khan, who gained prominence in the antitrust arena with her publication in The Yale Law Journal titled “Amazon’s Antitrust Paradox” in 2017. In her note, Khan argued that the prevailing antitrust framework failed to adequately assess the immense power of Amazon and its potential to harm competition. Amazon and Meta (formerly known as Facebook) have requested Khan’s recusal from their antitrust cases due to doubts regarding her impartiality. However, Khan has declined to step aside thus far.
It is worth noting that the FTC has already taken action against Amazon in other areas, including a recent consumer protection lawsuit accusing the platform of using deceptive tactics to encourage users to subscribe to its Prime service and obstructing their attempts to cancel. Additionally, Amazon settled two separate cases related to privacy breaches in its Alexa voice assistant and Ring video security products.
Despite possible negotiations for a settlement before formal charges are brought forward, Khan has expressed her preference for structural changes, such as breakups, rather than mere promises from companies to modify their behavior. This stance makes a settlement less likely. CNBC approached the FTC for comment, but they declined, and Amazon has yet to respond to the request.
For the complete story, please visit Bloomberg’s website.
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