Google isn’t the only company embroiled in big antitrust cases in the US. Amazon, the e-commerce giant, is also in the middle of one. Last week, media outlets reported a “partial victory” for the platform in an antitrust case filed in late 2023. However, not all the information was available, so the “bigger picture” was still unclear. Now, a new report reveals that the antitrust case against Amazon in the United States is moving forward.
Only a small portion of allegations against Amazon were dismissed
The lawsuit filed against Amazon in September 2023 alleges that the company carries out “anticompetitive and unfair strategies” that “stop rivals and sellers from lowering prices, degrade quality for shoppers, overcharge sellers, stifle innovation, and prevent rivals from fairly competing.” The FTC, 18 states, and one territory (Puerto Rico) are pushing the case against the online retailer.
A ruling on September 30, 2024, suggested that the company could breathe easily, at least for now. Reports claimed that US District Judge John Chun ruled to dismiss claims from states such as New Jersey, Pennsylvania, Maryland, and Oklahoma. So, it was possible that subsequent rulings would also dismiss claims from the plaintiff.
However, the part in favor of Amazon occupies only a relatively small portion of the overall ruling. The judge only dismissed some specific aspects of the claims from the states mentioned above. The main allegations of the antitrust case against Amazon in the US remain standing. Since the main allegations against the company were not dismissed, they are presumed legitimate prior to a legal determination.
The reasons behind the antitrust case against Amazon in the US
The case against Amazon is based on three main grounds. First, the company is said to have applied anti-competitive measures to pressure competitors within its own platform. For example, Amazon would “punish” stores that offer products at prices below Amazon’s own by deprioritizing them from the search and recommendation algorithm.
There are also conditions for accessing the “Fulfilled by Amazon” seal. Many buyers feel more confident when seeing such a seal, increasing potential sales. However, the lawsuit asserts that Amazon demands nearly half of every earned dollar to obtain the seal. In addition, Amazon would pressure sellers to use the seal if they want to stay competitive on the platform.
Lastly, there’s “Project Nessie,” an analysis algorithm to “monitor spikes and trends on Amazon.com.” The plaintiff claims that Amazon used the algorithm to charge American customers more. The online retailer asserts that it shut down Nessie in 2019.