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Federal Judge Greenlights FTC’s Antitrust Lawsuit Against Amazon, Tosses Some State Claims

By  |  October 7, 2024

A federal judge has granted the Federal Trade Commission (FTC) the green light to move forward with its landmark antitrust lawsuit against Amazon. However, the judge also provided a small reprieve for the tech giant by dismissing several claims brought by individual states involved in the case, per Bloomberg.

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    The ruling, issued last week by U.S. District Judge John H. Chun and unsealed on Monday, is a pivotal setback for Amazon, which had been attempting for months to get the case thrown out. The trial, expected to draw intense scrutiny, is set to begin in October 2026.

    “We are pleased with the court’s decision and look forward to moving this case forward,” said FTC spokesperson Doug Farrar in a prepared statement. He highlighted the agency’s belief that Amazon has been engaged in illegal monopolistic practices that harm both consumers and sellers by suppressing competition and driving up prices.

    The lawsuit, spearheaded by the FTC and joined by the attorneys general of 18 states, including Puerto Rico, alleges that Amazon has abused its dominant market position to unfairly manipulate pricing on its platform and beyond. The claims argue that the company overcharges sellers and stifles emerging competition in the broader marketplace. Filed in September 2023, the case followed a years-long investigation into Amazon’s business practices, making it one of the most significant challenges the company has faced in its nearly 30-year history.

    According to Bloomberg, the lawsuit accuses the retail giant of violating both federal and state antitrust and consumer protection laws. Judge Chun’s order allows the core federal antitrust claims, along with many state-based ones, to proceed, though he did dismiss claims made by New Jersey, Pennsylvania, Oklahoma, and Maryland under their respective state laws.

    Related: Judge Allows FTC Antitrust Case Against Amazon to Move Forward

    Amazon remains defiant, maintaining its confidence in the case. Tim Doyle, a spokesperson for the company, argued that the court’s ruling was based solely on assuming all allegations in the complaint were true—a standard practice at this stage of the legal process. “They are not,” Doyle stated. He further argued that the FTC’s case misrepresents consumer behavior, asserting that shoppers look at far more than just the most popular sites like Walmart.com, Target.com, Amazon, and eBay when purchasing household items.

    “The FTC will now need to prove these claims in court, and we are confident they will not hold up when tested by evidence,” Doyle added, asserting that the agency’s approach could complicate shopping and drive up costs for consumers.

    This case is part of a broader regulatory crackdown on major tech companies. In addition to Amazon, the FTC has targeted Meta Platforms for alleged monopolistic practices. The Department of Justice (DOJ) has also filed lawsuits against Apple and Google, with some early wins. In August, a federal judge ruled that Google’s dominant search engine exploits its power to stifle competition and hinder innovation—a case closely watched by both the tech industry and legal experts.

    As Amazon gears up for its legal battle, the case is set to become a defining moment in the company’s history, one that could reshape not only its business model but the future of e-commerce as a whole.

    Source: Bloomberg