US FTC to Sue Amazon for Alleged Antitrust Violations in E-commerce
Amazon sued three times this year alone
Fourth lawsuit under review
The U.S. Federal Trade Commission (FTC) is expected to file an antitrust lawsuit against Amazon, the world's largest e-commerce company, within weeks.
On the 29th (local time), Bloomberg News reported that the FTC is reviewing its fourth lawsuit against Amazon this year.
The FTC has been investigating this matter for several months. It is also reported that the details, including the court where the complaint will be filed, have already been decided.
The FTC believes that Amazon favored sellers who use its logistics services in the online marketplace while disadvantaging those who do not. Amazon charges fees every time third-party sellers sell products and also collects fees when they use its services such as warehousing, delivery, and advertising. Conversely, sellers who do not use these services were relatively disadvantaged.
The FTC is also investigating the seller selection algorithm for the "Buy Box" feature, which allows consumers to add products to their cart with a single click.
Bloomberg News stated, "This lawsuit focuses on Amazon's core business, the online marketplace," and added, "It will be a big one."
Although Amazon may attempt to resolve the issue before the FTC files the lawsuit, it is expected that reaching a settlement will be difficult. The media reported that FTC Chair Lina Khan prefers structural changes such as company breakups over promises to improve corporate practices.
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Meanwhile, on the 21st, the FTC filed a lawsuit against Amazon for violating related laws by deceiving customers into subscribing to the paid membership program Amazon Prime and making the cancellation process complicated. On the 31st of last month, the FTC also filed lawsuits alleging that Amazon's smart home company Ring failed to protect users' privacy and that the speaker powered by its AI platform Alexa collected information from children under 13 without authorization.
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