Amazon Under Fire: FTC and 17 States Unleash Legal Blitzkrieg

<p>In a vast legal onslaught, the Federal Trade Commission (FTC) and 17 states
have mounted a blistering lawsuit against Amazon, alleging that the e-commerce
giant operates an illegal monopoly. Who’d have thought it?</p><p>Filed in Amazon's home state of Washington, the lawsuit is the
culmination of a years-long investigation. It shines a spotlight on <a href="https://www.financemagnates.com/tag/amazon/" target="_blank" rel="follow">Amazon</a>'s
allegedly anticompetitive practices, potentially sending ripples through the
world of e-commerce and antitrust legislation. More importantly, it could have you waiting longer for your <a href="https://www.amazon.in/Thanos-Swimsuit-Male-Piece-Swimwear/dp/B082ZNPLVX" target="_blank" rel="nofollow">one-piece
Thanos swimming costume</a>.</p><p>The <a href="https://www.ftc.gov/" target="_blank" rel="nofollow">FTC</a> and its state allies aren't pulling punches. They've accused
Amazon of violating both federal and state antitrust laws, aiming for a
knockout blow to its "monopolistic control." At the heart of the
matter lies Amazon's alleged ploy to deter sellers from offering lower prices
on competing websites. If true, this not only hurts your wallet but also
stifles marketplace competition. We’re betting that’s true. We’re betting on
this, because we’ve been barred from our preferred pastime of <a href="https://www.financemagnates.com/trending/gold-bars-the-key-to-senator-menendezs-heart/" target="_blank" rel="follow">throwing
our dollars down and betting on elections</a>.</p><p>The lawsuit contends that Amazon's devious tactics include burying
listings with lower prices on non-Amazon platforms. Simultaneously, it hammers
sellers with high fees, forcing them to hike prices across the board. This
nefarious strategy keeps products competitive on Amazon while padding the
e-commerce giant's coffers. Sneaky, right? Well, sure. But this is Jeff Bezos' company we're talking about here, so anything's game.</p><blockquote><p lang="en" dir="ltr">WATCH: The US Federal Trade Commission filed a long awaited antitrust lawsuit against Amazon, and asked the court to consider forcing the online retailer to sell assets to stop what it said was ongoing harm to consumers <a href="https://t.co/IGuoxp6ioj">https://t.co/IGuoxp6ioj</a> <a href="https://t.co/IolYy53nqd">pic.twitter.com/IolYy53nqd</a></p>— Reuters Business (@ReutersBiz) <a href="https://twitter.com/ReutersBiz/status/1706773134546968802?ref_src=twsrc%5Etfw">September 26, 2023</a></blockquote><p>According to the lawsuit, Amazon takes a sizable bite out of sellers' revenues,
with the cut escalating from 19% in 2014 to a staggering 35% in 2020. It's a
harsh toll that has sellers yearning for alternative platforms. But Amazon's
dominance doesn't stop there—it allegedly strong-arms sellers into using its
logistics service, Fulfillment by Amazon, to access Amazon Prime benefits,
leaving them with little choice but to comply. Understanding Amazon’s pricing
and fees would involve a blackboard, a piece of chalk and Albert Einstein, but
they certainly charge fees per unit sold, per month of selling, for referrals,
for fulfillment (unless you do it yourself) and all sorts of other services. If
you’re a sadomasochist, you can discover them all <a href="https://sell.amazon.com/pricing">here</a>. Equally painful reading is the full announcement of the lawsuit, which can be found <a href="https://www.ftc.gov/news-events/news/press-releases/2023/09/ftc-sues-amazon-illegally-maintaining-monopoly-power" target="_blank" rel="nofollow">here</a>.</p><p>Regardless of the outcome, Amazon is often the proving ground for a wide range of payment systems, including the implementation of a <a href="https://www.financemagnates.com/fintech/ecb-selects-amazon-nexi-others-fordigital-euro-prototype-excercise/" target="_blank" rel="follow">digital euro</a> and other <a href="https://www.financemagnates.com/fintech/news/amazon-japan-picks-ayden-payments-platform/" target="_blank" rel="follow">innovative solutions</a>. It does not, however, accept <a href="https://www.financemagnates.com/cryptocurrency/news/amazon-denies-report-of-upcoming-bitcoin-payment-mode/" target="_blank" rel="follow">Bitcoin</a>.</p><p>So, what is the FTC after and why has it unleashed this legal
juggernaut? While it's not explicitly gunning for Amazon's breakup, a permanent
injunction is on the table. This injunction would aim to halt the alleged
misconduct, potentially reshaping the e-commerce landscape. Amazon, of course,
has its own retort, warning of price hikes and slower deliveries if the FTC has
its way.</p><p>In the ring, it's the FTC and 17 states versus Amazon, and the outcome
could redefine how we shop online. Buckle up, shoppers, for a legal
rollercoaster that could leave a lasting mark on your e-commerce experience.</p><p>In any case, must be off to place my order, Thanos (and the beach) waits for no man.</p>

This article was written by Louis Parks at www.financemagnates.com.