The news: The Federal Trade Commission (FTC) and 17 states sued Amazon for using a “set of interlocking anti-competitive and unfair strategies to illegally maintain its monopoly power,” per a statement.
The details: The suit argues Amazon engages in two separate sets of anti-competitive tactics, with one set negatively impacting sellers, and the other consumers.
The context: The suit is far from unexpected. FTC chairwoman Lina Khan came to prominence as a law student when she argued in a law review article that Amazon is anti-competitive and should be broken up even though it offers consumers low prices.
The big takeaway: Amazon has pushed back by arguing “if the FTC gets its way, the result would be fewer products to choose from, higher prices, slower deliveries for consumers, and reduced options for small businesses.”
Go further: Read our Power of Amazon report.
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