Amazon faces antitrust lawsuit from FTC later this month: report
The Federal Trade Commission could file a lawsuit against Amazon later this month after the company failed to make any concessions to settling antitrust claims The Wall Street Journal reported Tuesday citing people familiar with the matter.
The lawsuit targets the company’s Fulfillment by Amazon logistics program, third-party site pricing, and proposes “structural remedies” that could destroy the company, the report said.
Amazon and the regulator declined to comment when Reuters contacted them.
Shares of the company, which are up around 63% so far this year, slipped slightly 0.4% in extended trading.
The investigation began during the administration of former President Donald Trump, when the administration decided to investigate Amazon, Google, Meta Platforms and Apple for alleged antitrust violations.
Among other things, Amazon has been criticized for allegedly favoring its own products and discriminating against external sellers on its platform. The company has denied the allegations.
FTC Chair Lina Khan authored an article in the Yale Law Journal in 2017, saying that Amazon’s structure and practices raise anticompetitive concerns and escaped antitrust scrutiny.
In June, regulators sued Amazon, accusing the company of subscribing millions of consumers to its $139-a-year paid subscription service Prime without their consent, making it difficult for them to cancel the plan.
