Amazon Seeks Dismissal of FTC Antitrust Lawsuit

Overview

• Amazon has asked a federal court to dismiss a US government antitrust lawsuit, arguing that the Federal Trade Commission (FTC) has confused 'common retail practices' with anticompetitive conduct.
• The FTC lawsuit accuses Amazon of using illegal strategies to boost profits, including an algorithm named Project Nessie that allegedly pushed up prices by more than $1 billion.
• Amazon claims that Project Nessie was discontinued in 2019 and that the company matches other companies’ lowest prices.
• The FTC has criticized Amazon’s decision to require sellers under the company’s Prime feature to use its logistics and delivery services, even though many preferred to use a cheaper service or one that would also serve customers on other platforms.
• Amazon argues that it competes with other online superstores like Walmart and Target, as well as a range of stores with specialized markets such as Best Buy, Home Depot, Kroger, Costco, Staples, Walgreens, Nike and Apple.