The Federal Trade Commission (FTC) under the leadership of Chair Lina Khan is in the final stages of preparing an extensive anti-trust lawsuit against Amazon, a move that could result in the division of certain segments of the e-commerce giant.
According to reports, the lawsuit aims to bring about a court-ordered restructuring of Amazon's massive $1.3 trillion empire.
The FTC has been conducting a lengthy investigation into Amazon, and among the potential claims are allegations similar to those in existing cases, such as Amazon's alleged imposition of rules that compel third-party retailers to offer their lowest prices exclusively on its platform.
The complaint is expected to focus on various aspects, including challenges to Amazon Prime, concerns regarding Amazon's rules that allegedly hinder lower prices on competing websites, and policies that the FTC believes force merchants to utilize Amazon's logistics and advertising services, as per insider sources.
Specifically regarding Amazon Prime, the FTC is troubled by the notion that the bundled services may be used to illegally solidify the company's market power.
Notably, last month, the FTC filed a lawsuit against Amazon, accusing the company of employing "dark patterns," deceptive user-interface designs, to allegedly deceive consumers into unknowingly signing up for its Prime service. The complaint was lodged in a federal court in Seattle.
Amazon Prime, priced at $139 per year, offers customers free two-day shipping, as well as access to Prime Video and music streaming.
FTC Chair Lina Khan had made a statement, expressing concern about Amazon's tactics and how they have led to recurring subscriptions without users' consent, causing frustration and significant financial impact on consumers. Khan emphasized the FTC's commitment to safeguarding consumers and businesses alike from unfair or deceptive practices in digital markets.
Amazon has refuted the FTC's claims, asserting that they are untrue in both fact and law.
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