Amazon Files Motion to Dismiss FTC's Antitrust Lawsuit Alleging Illegal Tactics

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ICARO Media Group
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10/12/2023 20h14

In a recent development, e-commerce giant Amazon has filed a motion seeking the dismissal of the antitrust lawsuit brought against it by the Federal Trade Commission (FTC) and 17 state attorneys general. The complaint, filed in September, accuses Amazon of employing illegal tactics to stifle competition.

The FTC and state attorneys general claim that Amazon utilizes several strategies to crush its competitors. These tactics include punishing sellers who offer lower prices on other platforms by burying their listings in search results. Additionally, Amazon is accused of pressuring sellers to use its own fulfillment service, tied to Prime eligibility, thereby limiting options for sellers to reach their customers.

Another significant allegation made against Amazon is the inflation of prices through an algorithmic tool called Project Nessie. The complaint asserts that between the years 2016 and 2018, these price increases amounted to over $1 billion, negatively impacting consumers.

However, Amazon, in its motion for dismissal, argues that it is simply engaging in "common retail practices" that are beneficial to consumers and integral to promoting healthy competition. Heidi Hubbard, an attorney representing Amazon, stated that the lawsuit "implausibly, and illogically, assumes that Amazon's efforts to keep featured prices low on Amazon somehow raised consumer prices across the whole economy."

The outcome of this motion will be determined in the Western Washington district court, where the case has been filed. If the motion is successful, the lawsuit against Amazon could potentially be dismissed. On the other hand, if the motion is denied, the case will proceed, and Amazon will have to defend itself against these allegations.

The filing of this motion marks a significant development in the ongoing legal battle between Amazon and regulatory authorities. The outcome of this case may have far-reaching implications for the e-commerce industry, as it addresses the issue of fair competition and antitrust concerns.

As the proceedings unfold, it remains to be seen how the court will rule on Amazon's motion for dismissal and whether the allegations made by the FTC and state attorneys general will hold up under legal scrutiny.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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