The Federal Trade Commission's long-anticipated antitrust lawsuit against Amazon may be filed in the coming weeks, according to a report by Bloomberg on Thursday.The complaint would be centered on Amazon's online marketplace, and should this suit take place, it would mark a huge milestone for FTC Chair Lina Khan. Khan previously gained notoriety in the antitrust field when her note "Amazon's Antitrust Paradox" was published in The Yale Law Journal in 2017.
The Federal Trade Commission (FTC) is expected to soon file an antitrust lawsuit against Amazon, according to a report by Bloomberg on Thursday. Documents reviewed by Bloomberg and sources familiar with the case suggest the complaint will focus on Amazon's marketplace and how the company is allegedly using its power to favor merchants that utilize its logistics services. It is believed that the case may be filed within the coming weeks.
Lina Khan, Chair of the FTC and a well-known figure in the antitrust world, has been under scrutiny from Amazon since 2017 when The Yale Law Journal published her note, "Amazon's Antitrust Paradox," in which she argued that existing antitrust frameworks failed to properly assess Amazon's extensive power. This has led to the company requesting for Khan's recusal from Amazon-related antitrust cases, however she has so far declined to sit out.
Meanwhile, the FTC has taken action against Amazon in other areas, such as a consumer protection lawsuit alleging the company has used deceptive tactics to entice people into subscription to their Prime service, as well as settling two separate cases concerning privacy issues with Alexa voice assistant and Ring video security products. The expected antitrust complaint is said to be based on evidence gathered by the FTC suggesting Amazon is disadvantaging sellers who do not use its logistics services.
Despite the possibility of a settlement before the formal filing of charges, Khan has suggested she favors structural changes such as dissolution of the company over reforms in company behavior, which makes a settlement less likely. The FTC and Amazon declined to comment on the story.
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