US Court Allows Antitrust Suit By FTC Against Amazon

US Court Allows Antitrust Suit By FTC Against Amazon

The move has dealt a blow to the efforts of the e-commerce giant to have the case dismissed

The US District Court for the Western District of Washington has given the nod to the Federal Trade Commission (FTC) to pursue its landmark antitrust lawsuit against Amazon.

The Commission alleged that Amazon's monopoly in e-commerce harmed competition and raised prices.

Judge John H. Chun rejected Amazon's motion to dismiss several federal claims based on the Federal Trade Commission Act and the Sherman Act. The ruling allows the Commission to move forward with its allegations.

The judge noted that Amazon forced sellers to use its services "in the light most favorable" to the government and the claims were "plausibly" anti-competitive. However, pro-competitive business justifications for policies "are improper to consider at this stage" and would become relevant at trial.

Meanwhile, FTC spokesperson Douglas Farrar stated, "We are pleased with the court's decision and look forward to moving the case. The way Amazon illegally maintains its monopolies and the harm they cause, including suppressed competition and higher prices for shoppers and sellers, will be on full display at trial."

The September 2023 lawsuit accused Amazon of anti-competitive practices, including punishing sellers who offered lower prices on other platforms and required them to use its fulfilment services for prime positioning.

While allowing the federal claims to proceed, the judge dismissed some state-level allegations.

Attorney generals from 18 states and Puerto Rico had joined the FTC's suit, but claims under certain state antitrust and consumer protection laws were not permitted. However, the judge provided a chance to the states to refile some of the claims.

Still, Amazon was confident, as its spokesperson Tim Doyle stated, "The early-stage ruling requires the court to assume all facts alleged in the complaint are true. They are not. The FTC will have to prove its claims in court. We are confident that those claims will not hold up when the FTC has to prove them with evidence."

Judge Chun noted that the case would be bifurcated. This meant remedies would be considered if Amazon was found liable for the charges.

The case will be tried in October 2026. It marks one of the most significant legal challenges to Amazon's business practices in its 30-year history.