A federal judge has allowed the Federal Trade Commission (FTC) to proceed with its antitrust lawsuit against Amazon, according to a newly unsealed order. However, some claims under state laws will not move forward.
The decision is part of the 2023 lawsuit in which the FTC accuses Amazon of maintaining a monopoly by penalizing sellers who offer discounts outside its platform and requiring the use of its fulfillment services to gain favorable positioning on its website.
FTC Claims Amazon’s Practices Harm Competition
Judge John Chun denied Amazon’s motion to dismiss key federal claims brought under the FTC Act and the Sherman Act. However, the judge ruled that certain claims based on state laws, which involve state attorneys general, would not proceed. The judge did, however, allow the possibility for some of those state claims to be revised and refiled.
FTC spokesperson Douglas Farrar expressed satisfaction with the ruling, stating, “We are pleased with the court’s decision and look forward to moving this case forward.” He emphasized that the case aims to expose the ways Amazon allegedly maintains monopolistic control, harming competition, shoppers, and sellers. According to the FTC, these practices result in higher prices and reduced competition, and the goal of the trial will be to restore competitive conditions in the marketplace.
Amazon Disputes Allegations
Amazon, in contrast, remains firm in its stance. Tim Doyle, an Amazon spokesperson, responded to the court’s ruling by emphasizing that the decision is still in its early stages and based on the assumption that the FTC’s claims are factual, which Amazon disputes. “Moving forward, the FTC will have to prove its claims in court,” Doyle said. He asserted that Amazon’s business practices promote competition, benefit consumers, and support small and medium-sized businesses on its platform. Doyle argued that the FTC’s approach would instead lead to increased difficulty and costs for consumers.
The ruling marks an important step for the FTC in its pursuit of antitrust claims against Amazon, but it does not indicate how the court will ultimately rule. Judge Chun’s order notes that while the allegations of Amazon’s conduct appear “plausibly” anticompetitive when viewed in favor of the government, pro-competitive business justifications cannot be considered at this stage of the case. These justifications will only become relevant during the trial phase.
In line with recent antitrust cases, such as those against Google, Chun indicated that the trial would be bifurcated, meaning any consideration of remedies would only take place if Amazon is found liable for the alleged violations.
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