The Federal Trade Commission (FTC) is preparing to file an antitrust lawsuit against Amazon, alleging that the company has abused its market power to stifle competition.
The suit, which is expected to be filed as soon as August, alleged that Amazon uses its dominance in the market to reward merchants who use its logistics and advertising services, punish those who don’t, and block lower prices on competing websites.
For example, the FTC alleges that Amazon requires third-party retailers on its site to offer goods at their lowest prices on the platform, meaning they can’t be found cheaper than on Amazon.
The FTC also alleges that Amazon gives preferential treatment to merchants who use its logistics and advertising services. It adds that Amazon may give these merchants higher placement in search results or give them access to exclusive deals.
The sources for this piece include an article in TechSpot.