What The Federal Trade Commission (FTC) is preparing to file an antri-trust lawsuit against Amazon’s core marketplace

Why It is alleging that the company unfairly favors its own logistics services

What Next The FTC wants to file the charges by August

 

Lina Khan, chair of the Federal Trade Commission (FTC), is preparing to file an antitrust suit against Amazon’s core online marketplace.

 

The suit alleges that Amazon uses its market power to reward merchants using its logistics services and penalize those who do not, Bloomberg reports.

 

The FTC has been working on the complaint for several months and aims to file before personnel changes in August.

 

The anticipated lawsuit may seek to restructure Amazon, a move that the company would likely appeal. Amazon has argued that Khan should recuse herself due to her public statements, but she continues to lead the case.

 

Amazon’s marketplace, where third-party merchants pay fees for various services, is at the center of the antitrust scrutiny.

 

The FTC has gathered evidence that Amazon disadvantages sellers who do not use its services and is investigating the algorithm that selects merchants for the “Buy Box.”

Fourth Case This Year

 

The expected allegations align with a previous US House subcommittee report and a European antitrust case against Amazon.

 

This suit would be the FTC’s fourth case this year challenging Amazon’s customer-centric image.

 

The company has already faced lawsuits related to data privacy, consumer protection, and allegations of making it difficult to cancel Prime memberships. The FTC has been investigating Amazon’s practices since 2019.