US sues Amazon for market monopolization
The Federal Trade Commission (FTC) has filed a lawsuit against the global giant Amazon, accusing the company of violating antitrust laws, reports CNBC.
The lawsuit was also supported by the attorneys general of 17 US states. The case will be heard by the Federal Court in Seattle.
The plaintiffs believe that Amazon uses its “monopoly power” to inflate prices, and that the company’s actions degrade the quality of goods and harm competition.
“The upshot here is that Amazon is a monopolist and it’s exploiting its monopolies in ways that leave shoppers and sellers paying more for worse service,” said FTC Chairwoman Lina Khan.
According to her, in a competitive world, a monopoly that raises prices and worsens the quality of service would create an opportunity for competitors and potential competitors to come in, attract business, develop and compete.
“…but Amazon’s unlawful monopolistic strategy has closed off that possibility, and the public is paying directly as a result,” she added.
Instead, Amazon argues that the FTC’s claim is not consistent with the facts and the law.
By the way, in the summer, the deal between Amazon and iRobot was in the crosshairs of EU antitrust law. The EC is conducting an investigation and will decide on the future of this acquisition by November 15.