FTC files lawsuit against Amazon for alleged illegal monopoly practices

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FTC files lawsuit against Amazon for alleged illegal monopoly practices
Credit: © Reuters.

The Federal Trade Commission (FTC) has lodged a lawsuit against Amazon (NASDAQ: AMZN ), the leading e-commerce company in the US, as reported on Wednesday. The FTC accuses Amazon of maintaining an illegal monopoly that negatively impacts retailers including Walmart (NYSE: WMT ) and Macy's (NYSE: M ).

Amazon, acknowledged by Insider Intelligence as holding a 38% market share, is charged with employing "interlocking anticompetitive strategies". These strategies allegedly position the company as a dominant marketplace landlord, seller, and delivery business, thus creating an unfair competitive environment.

In response to the lawsuit, Amazon has defended its practices. The tech giant argues that its operational methods are designed to prevent higher prices for consumers and slower delivery times. This rebuttal suggests that without such practices in place, consumers could face increased costs and delayed deliveries.

The FTC's legal action against Amazon forms part of an ongoing examination of the company's market dominance. The outcome of this lawsuit could potentially reshape the dynamics of the e-commerce sector in the United States.

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