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The Federal Trade Commission (FTC) is poised to take legal action against Amazon.com Inc. in the coming week, targeting the e-commerce giant for antitrust violations, according to insider sources. This marks the FTC’s fourth move against Amazon this year, signifying a pivotal moment for FTC Chair Lina Khan, known for her influential legal article on redefining antitrust law for the digital age with Amazon in mind.
Focus on Amazon’s Pricing Policies and Prime Service
The anticipated antitrust complaint is expected to center on various aspects of Amazon’s business practices. Among the areas of concern are the company’s pricing policies, which have already drawn legal scrutiny from California’s attorney general. Additionally, the complaint will likely address allegations that Amazon unlawfully links merchant access to its marketplace with its logistics service. Speaking on the condition of anonymity, insiders revealed these details regarding the pending complaint.
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Amazon’s Prime membership service has been pivotal to the company’s success, converting occasional shoppers into loyal customers who prefer Amazon for their online shopping needs.
Ongoing Scrutiny of Amazon
The FTC has been monitoring Amazon’s activities for more than four years, with a particular focus during the Trump administration. Investigations have probed various aspects of Amazon’s operations, including its online marketplace, where the company and third-party sellers offer products, and its Prime subscription service. Under the leadership of Chair Lina Khan, the agency has intensified its efforts, expanding its inquiries into the tech giant. In August, Amazon executives discussed the potential lawsuit with Khan and the FTC’s other commissioners, although no settlement was reached.
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Prior Legal Battles
Amazon has already faced legal action from the FTC earlier this year. In May, the agency filed two separate cases against the company, alleging that Amazon failed to delete children’s data collected by its Alexa devices and engaged in unlawful surveillance of Ring doorbell and camera users. While Amazon contested the FTC’s allegations, it ultimately agreed to a $30.8 million settlement to resolve the suits.
A month later, the FTC launched yet another lawsuit, claiming that Amazon misled consumers into subscribing to its Prime service and subsequently made it challenging to cancel. Recently, the FTC amended its complaint to include three Amazon executives as defendants in this case, arguing that they disregarded employee concerns about using deceptive tactics to enroll users in recurring billing. Amazon is currently disputing these allegations in court.
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