The Federal Trade Commission, the primary business regulator of the U.S. government, filed a lawsuit against Amazon on Tuesday, alleging that the company has leveraged its market dominance to distort the landscape of e-commerce across the internet.

The accusations primarily revolve around Amazon’s core marketplace, Amazon.com, and portray a company capable of using its size and influence to exert pressure on sellers to conform to its terms and manipulate the prices of products.

FTC Chair Lina Khan, in a press conference preceding the lawsuit announcement, emphasized the ongoing and immediate harm caused by these practices, NBC News reported.

She stated, “Sellers are, in effect, surrendering one out of every $2 to Amazon. This, in turn, leads to higher prices for shoppers, not only on Amazon but throughout the entire internet. The broader public has also been denied the advantages of a competitive, open, and equitable marketplace. That is the crux of this case, and these are the harms we aim to rectify.”

The FTC lodged these allegations in an antitrust lawsuit filed in the U.S. District Court for the Western District of Washington state, with support from the attorneys general of 17 states, including two Republicans.

It is notable that Amazon is headquartered in Washington state.

Written by staff