Judge Allows FTC Antitrust Case Against Amazon to Move Forward

A federal judge has ruled that the Federal Trade Commission (FTC) can proceed with its landmark antitrust lawsuit against Amazon, marking an early win for the agency in its ongoing efforts to challenge Big Tech’s market power. According to The Washington Post, U.S. District Judge John Chun dismissed some state-level claims but upheld the core federal allegations, allowing the case to advance.

The lawsuit, initially filed in September 2023 by the FTC, along with 18 states and Puerto Rico, accuses Amazon of monopolistic practices that harm both competitors and consumers. The FTC argues that the e-commerce giant used its dominance to squeeze merchants and drive up prices, diminishing the quality of goods available to American shoppers. According to the case, Amazon’s tactics suppress competition and limit consumer choice.

The Washington Post reported that while Judge Chun tossed some claims brought by state attorneys general, the federal antitrust accusations will continue. His ruling, delivered in a sealed order, is expected to be unsealed later in October. Despite this partial dismissal, the decision is seen as a setback for Amazon, which had hoped to have the entire case thrown out.

Amazon, however, maintains that its business model is beneficial to consumers. The company’s legal team argued in December 2023 that Amazon’s prices are competitive and aligned with industry standards. Nonetheless, the FTC’s case underscores broader concerns about the power of major tech companies and their influence on the economy.

Related: Federal Judge Partially Dismisses FTC’s Antitrust Case Against Amazon

The case is part of a wider regulatory push against Big Tech, with the FTC challenging Amazon and Meta, while the Department of Justice takes on Google and Apple. These cases test whether current antitrust laws, originally designed for traditional industries, can be applied to today’s digital marketplaces.

For Lina Khan, the FTC chair who rose to prominence for her critical analysis of Amazon’s market power in her 2017 law school paper, this case is particularly significant. Khan has become a leading figure in the “hipster antitrust” movement, which advocates for a more aggressive approach to regulating monopolistic behavior in the tech industry.

The ruling represents the most significant legal challenge yet to Amazon’s 30-year-old business model, and its outcome could reshape how the U.S. regulates the digital economy. The decision will be closely watched as the case moves forward in what is expected to be a lengthy legal battle.

Source: The Washington Post