A new lawsuit filed by the Federal Trade Commission (FTC) against Amazon (AMZN) accuses the e-commerce behemoth of deceiving customers into signing up for Prime subscriptions and obstructing their attempts to cancel, marking another instance of US authorities cracking down on major American tech companies.

The lawsuit comes after a two-year investigation into Amazon’s tactics to acquire and retain Prime subscriptions, Yahoo Finance reported.

Prime membership currently costs $139 per year or $14.99 per month, offering benefits like free shipping and additional services.

This legal action adds to a series of regulatory and legal measures taken by the US government to address the dominance of prominent tech giants, including Google (GOOG) and Microsoft (MSFT) under Alphabet, Meta (META), and Apple (APPL).

These cases, which gained traction in 2019 during the Trump administration and gained further momentum under the Biden administration, center around the alleged anti-competitive practices of these companies and the potential threat they pose to fair competition.

Written by staff