Amazon.com Sees Partial Dismissal in FTC Lawsuit

By Jody Godoy

(Reuters) – Amazon.com Inc received a partial dismissal in a lawsuit from the U.S. Federal Trade Commission (FTC), which accuses the company of maintaining illegal monopolies.

The federal court in Seattle issued a ruling on Monday, though specific details were not immediately available. The FTC alleges that Amazon utilizes anti-competitive tactics to sustain its dominance in the online marketplace.

In December, Amazon requested U.S. District Judge John Chun to dismiss the case, arguing that the FTC presented no evidence showing harm to consumers.

Last year, the FTC claimed that Amazon’s algorithms raised prices for U.S. households by over $1 billion, a program that Amazon stated it ceased using in 2019.

The ruling by Chun was sealed but indicates that Amazon’s motion was partially granted. The FTC is permitted to continue pursuing any claims that the judge did not dismiss.

Additionally, the case will be split into two parts, as Chun rejected Amazon’s request to combine the FTC’s evidence of alleged violations with proposed remedies in a single trial.

Neither the FTC nor Amazon immediately commented on the ruling.

In its previous complaint, the FTC asserted that Amazon stifles competition, partly by encouraging sellers to utilize its advertising and fulfillment services. Amazon countered that its price-matching and Prime shipping services benefit consumers and illustrate its competitive efforts against numerous online and physical retailers.

This lawsuit is one of five major legal actions targeting Big Tech, with the FTC and U.S. Department of Justice going after several companies. Meta Platforms (Facebook), Apple, and Alphabet’s Google are also facing lawsuits over antitrust concerns.

The Amazon.com case is significant for FTC Chair Lina Khan, who has been an advocate for challenging the power of large online retailers. In 2017, Khan authored a notable article addressing the anti-competitive concerns related to Amazon’s structure and practices, which have largely evaded antitrust scrutiny.