The United States sues Amazon for “illegal” monopoly

2023-09-27 06:06:17

It’s a “long-awaited trial” the outcome of which might “change the way Americans shop”, sums it up New York Times. After years of investigations and tensions between political powers and Amazon, the American competition authority (FTC) and 17 states filed a complaint on Tuesday September 26 once morest the technology giant, accusing it of “illegally maintain its monopoly” thanks to “anti-competitive and unfair strategies”.

These legal proceedings represent “the most significant attack of the American government” once morest one of the tech giants, estimated Politico. The federal agency accuses Amazon in particular of dissuading sellers from offering prices lower than its own on products where the Seattle group competes with retailers. The authority also criticizes the American giant for conditioning the eligibility of traders to “Prime” (subscription which allows consumers to have their delivery quickly) for the use of logistics services “expensive” from Amazon.

“Fees, requirements and incentives that enable” to the e-commerce giant of “collect one dollar out of every two earned by a seller on the platform”, analyze the Washington Post. These costs “are then passed on to buyers”, notes the American daily.

“Amazon is exploiting its monopoly power to enrich itself, while driving up prices and degrading service for the tens of millions of American families who shop on its platform and the hundreds of thousands of companies that depend on Amazon” to market their products, said FTC President Lina Khan on Tuesday, quoted in the press release.

“Structural changes” rather than “dismantling”

John Kirkwood, professor of law at Seattle University; explained to Seattle Times that the FTC was not seeking to “completely dismantle the Amazon market but rather put an end to certain practices”. The FTC clarified Tuesday that “The corrective measures might include structural changes in the company, but it does not specify what these might be,” notice the Washington Post.

The matter might in any case “take years before it is processed by the legal system and before consumers notice changes in the market”, warns John Kirkwood.

“Long-time Amazon reviewer,” FTC Chairman Lina Khan has so far had “struggling to convince the courts of its antitrust opinions”, recalls for his part the Wall Street Journal. “Having already lost cases once morest Microsoft and Meta Platforms, she and her agency now face a crucial test once morest Amazon,” concludes the financial daily.

1696828575
#United #States #sues #Amazon #illegal #monopoly

Share:

Facebook
Twitter
Pinterest
LinkedIn

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.