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In a significant development, Federal Trade Commission Chair Lina Khan has voiced her concerns over Amazon.com Inc.’s alleged monopolistic practices. She states that her agency will pursue legal action to stop the company’s “illegal conduct” if its antitrust lawsuit proves successful. Khan’s remarks came during her first public comments following the FTC’s filing of a lawsuit against Amazon, accusing the tech giant of monopolizing online marketplace services.
Amazon’s Alleged Coercion of Businesses
Khan highlighted the predicament faced by businesses looking to sell their products online, asserting that they are effectively coerced into adhering to Amazon’s rates, which encompass advertising and logistics services. She emphasized that, at a minimum, any relief granted would necessitate the company ceasing these tactics. Khan further indicated that the ultimate goal is to restore competition in the marketplace, a course of action they intend to propose to the judge overseeing the case.
FTC and States File Complaint Against Amazon
The complaint, jointly filed by the FTC and 17 states, refrains from specifying remedies but alludes to the possibility of “structural relief.” In antitrust terminology, this often entails divesting assets or breaking up a business. Amazon has responded by vowing to vigorously defend itself against the lawsuit, arguing that the remedies sought by the FTC could result in higher prices and harm businesses reliant on Amazon for product distribution.
The Core Issue: Lost Competition
Khan firmly underscored the central issue, stating that the case revolves around the competition eroded due to Amazon’s monopolistic practices. She acknowledged that antitrust cases tend to be protracted but emphasized the FTC’s commitment to expeditiously pursuing the case, driven by the situation’s urgency and the cumulative harm caused by Amazon’s tactics over time.
Khan’s Background and the FTC’s Ongoing Efforts
Lina Khan’s involvement in this landmark Amazon case represents a career-defining moment. As the youngest-ever FTC chair, Khan initially gained recognition in the antitrust arena with a 2017 law review article focused on Amazon. Before joining the FTC, Khan played a pivotal role in a congressional subcommittee’s investigation into major U.S. tech giants, culminating in a 2020 report highlighting evidence of market consolidation. This lawsuit is part of a broader initiative by antitrust enforcers to curtail the influence of major tech platforms, following similar suits against Google and Meta Platforms Inc.
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As FTC chair, Khan has taken a more assertive stance on policing mergers, especially those involving major tech companies, and addressing anticompetitive practices among large U.S. corporations. However, the agency has encountered mixed results, with two court defeats earlier in the year.
Scrutiny of “Stealth Consolidation” Continues
Khan also drew attention to a recent FTC case targeting a private equity firm’s alleged market monopolization strategy in anesthesiology. The agency filed a lawsuit against US Anesthesia Partners Inc. and Welsh Carson Anderson & Stowe LP, accusing them of systematically acquiring multiple anesthesiology practices in Texas and raising prices. Both companies deny wrongdoing, citing price increases in line with inflation.
Khan stressed the need for continued scrutiny of “stealth consolidation” through successive acquisitions, although she refrained from specifying industries under investigation.
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