The Federal Trade Commission's antitrust lawsuit against e-commerce giant Amazon.com Inc. looks to be stronger than expected, but it will still be a tough slog.
The Federal Trade Commission’s antitrust lawsuit against e-commerce giant Amazon.com Inc. looks to be stronger than expected, but it will still be a tough slog.
The FTC’s suit against Amazon de-emphasizes the company’s behemoth size. Instead, one focus of the suit is on how the company’s technology manipulates consumers to buy certain products that use Amazon’s fulfillment services, by emphasizing those products online. Sellers are charged four different types of fees to sell on Amazon Marketplace, including for fulfillment and delivery services.
“The complaint makes it very clear it isn’t a case against Amazon because [the company] is big,” said Abiel Garcia, a partner at Kesselman Brantly Stockinger LLP and a former deputy attorney general for the California Department of Justice. “It is because of using various interlocking mechanisms to control online retail.”
But Bhaskar Chakravorti, dean of global business at the Fletcher School at Tufts University, said it will be tough for the FTC to prove what it means by consumer harm in this case.
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