FTC Lawsuit Alleges Amazon Used Secret Pricing Algorithm to Raise Prices and Stifle Competition

The FTC sued Amazon for illegally maintaining a monopoly in online retail, aided by a secret pricing algorithm called Project Nessie.
Project Nessie allowed Amazon to raise prices while monitoring if competitors would follow suit, generating over $1 billion in revenue.
If competitors didn't raise prices, Project Nessie would revert Amazon's prices back to normal levels.
The FTC alleges Amazon's actions were anticompetitive, closed opportunities for rivals, and led to consumers paying higher prices.
Amazon argues Project Nessie prevented unsustainable price wars, but stopped using it in 2019 amid the FTC investigation.