The antitrust lawsuit against Amazon has officially come through after the Federal Trade Commission (FTC) and over a dozen state attorneys general filed the case.
Read Also: Amazon Prime Video Content Will Start Showing Ads, Removing Them Costs Extra
Amazon's Market Dominance Becomes a Problem
FTC filed the case citing that Amazon has unlawfully took advantage of the company's market dominance to kick out potential competitors. Moreover, the FTC said that the e-commerce giant "used a set of punitive and coercive tactics" in order to maintain the monopoly.
"The complaint sets forth detailed allegations noting how Amazon is now exploiting its monopoly power to enrich itself while raising prices and degrading service for the tens of millions of American families who shop on its platform and the hundreds of thousands of businesses that rely on Amazon to reach them," FTC Chair Lina Khan stated in a statement.
Amazon is accused of creating bias on its search results which favors the company's own line of products. In addition, FTC will also look into the alleged punishment to sellers who offer cheap-priced products on various platforms and its limited seller eligibility for Prime shipping benefits.
Amazon Retaliates on the Allegations
For months, Amazon has been facing legal battles with the FTC. This includes Amazon's handling of children's data and privacy which was settled by paying $30.8 million. On the other hand, the lawsuit involving Amazon's forced Prime Subscription plan is still ongoing.
Following the announcement of the lawsuit, Amazon released a statement claiming that facts from FTC lawsuit was wrong.
"If the FTC gets its way, the result would be fewer products to choose from, higher prices, slower deliveries for consumers, and reduced options for small businesses-the opposite of what antitrust law is designed to do," Amazon said in a statement.
Related Article: FTC is Moving to Sue Amazon for Antitrust Violations
