The FTC accuses Amazon of inflating costs and degrading high quality.
September 26, 2023, 12:18 PM
The Federal Trade Commission and 17 state lawyers normal filed a lawsuit towards Amazon on Tuesday, accusing the company of illegally maintaining its monopoly power “to inflate prices, degrade quality, and stifle innovation for consumers and businesses.”
The primary tech company allegedly deployed unlawful trade techniques “to stop rivals and sellers from lowering prices, degrade quality for shoppers, overcharge sellers, stifle innovation, and prevent rivals from fairly competing against Amazon,” the FTC said in a commentary.
The sheer dimension of Amazon does no longer quantity to a contravention of the regulation, the FTC stated. Rather, the company’s criticism facilities on a collection of “far-reaching schemes” that affect masses of billions of greenbacks in gross sales each and every 12 months and masses of hundreds of thousands of customers.
In a commentary, Amazon rebuked the allegations, announcing the practices at factor have helped gasoline innovation moderately than stifle it.
“Today’s suit makes clear the FTC’s focus has radically departed from its mission of protecting consumers and competition,” Amazon said. “The practices the FTC is challenging have helped to spur competition and innovation across the retail industry, and have produced greater selection, lower prices, and faster delivery speeds for Amazon customers and greater opportunity for the many businesses that sell in Amazon’s store.”
“The lawsuit filed by the FTC today is wrong on the facts and the law, and we look forward to making that case in court,” the company added.
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