U.S. Antitrust Regulator to Target Amazon's Marketplace - Bloomberg Reports
The U.S. antitrust regulator is set to file a lawsuit specifically aimed at Amazon.com's primary online marketplace in the upcoming weeks, according to a report by Bloomberg News. Citing both internal documents and sources familiar with the matter, the report unveils the intentions of the U.S. Federal Trade Commission (FTC).
The forthcoming allegation by the FTC revolves around Amazon's alleged misuse of its dominance. It is expected that the primary accusation will focus on how Amazon utilizes its power to incentivize online merchants who utilize its logistics services, while simultaneously penalizing those who choose not to do so.
Amazon, being the e-commerce giant under scrutiny, did not provide an immediate response. On the other hand, the FTC declined to comment altogether.
This potential lawsuit would mark the latest action taken by the agency against Amazon in recent times. FTC Chairwoman Lina Khan's office has spent months developing the complaint, finalizing crucial details such as the jurisdiction in which to file the lawsuit, as revealed in the report.
President Joe Biden's administration has been actively pursuing actions to curb the disproportionate market power held by Big Tech companies like Amazon, aiming to foster a more competitive landscape that prioritizes consumer protection.
Just last week, the FTC accused Amazon of enrolling millions of consumers into its paid subscription service, Amazon Prime, without obtaining their consent. Furthermore, the company made it challenging for these individuals to cancel their subscriptions.
In addition to these allegations, the FTC is currently investigating Amazon's $1.7-billion acquisition of iRobot, the renowned maker of "Roomba" vacuums.
According to the report, the FTC's antitrust case targeting Amazon's online marketplace has been in progress for a substantial period. In June 2019, Amazon received an initial investigation notice from the FTC, as documented in the reports.
These documents contained inquiries about the impact of using Amazon's warehousing and delivery services on product placements for third-party sellers within the online marketplace. Of particular interest were the prominently displayed boxes on the website that granted certain products heightened visibility.
Moreover, the FTC sought records pertaining to any existing arrangements between Amazon and Apple Inc. The two companies reached an agreement in 2018 that allowed Apple iPhones, iPads, and various other devices to be sold on Amazon's marketplace.
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