A federal judge has given the Federal Trade Commission the green light to pursue antitrust charges against Amazon, according to a recently unsealed order, although some claims cannot be pursued under state law.
Amazon filed a motion to dismiss the 2023 lawsuit, which alleges the company illegally maintains a monopoly by penalizing sellers who discount products outside of Amazon and “effectively forcing them to” do its own fulfillment -Use services for coveted positioning on the website. Judge John Chun rejected Amazon's attempts to dismiss several federal lawsuits based on the FTC Act and the Sherman Act. Chun disputed some claims that Amazon violated state law, which came as state attorneys general joined the lawsuit. But he gave them a chance to reexamine at least some of those claims.
“We are pleased with the court’s decision and look forward to moving forward with this case,” FTC spokesman Douglas Farrar said in a statement. “The ways in which Amazon illegally maintains its monopolies and the harm they cause – including stifled competition and higher prices for buyers and sellers – are on full display in the trial.” This case is ultimately about the “To break away from Amazon’s monopolistic control and restore competition.”
Amazon spokesman Tim Doyle noted in a statement that the “early stage” ruling “compels the court to assume that all of the facts alleged in the lawsuit are true.” They are not.” Doyle said that FTC lawsuit doesn't take into account exactly how consumers shop. “Going forward, the FTC will have to prove its claims in court, and we are confident that these claims will not stand if the FTC has to prove them with evidence,” Doyle said. “The truth is that Amazon’s practices are good for competition, consumers and the small and medium-sized businesses that sell on our store, while the FTC’s approach would make shopping more difficult and costly.”
While this decision means the FTC will have the opportunity to continue arguing its case in court, it does not necessarily indicate how the judge will rule based on the evidence. For example, the judge writes that the claims are “credibly” anticompetitive given the allegations that Amazon forces sellers to use its services “in a light most favorable to the government.” However, Chun cautions that any pro-competitive business justifications for his policies “should not be considered at this time” – they will be relevant in court.
Chun said that, like the recent antitrust cases against Google, the Amazon case would be split in two – meaning he would only consider remedies if Amazon were found liable for the allegations.