The United States Federal Trade Commission (FTC) launched a long-awaited antitrust case against Amazon.com on Tuesday, accusing the online retailer of harming customers through higher prices in the latest U.S. government legal action aimed at disrupting Big Tech’s internet dominance.
The lawsuit has been anticipated for years as accusations against the tech behemoths piled up. The accusations concern the exploitation of tech firms’ dominance in search, social media, and online shopping, which allows them to control the most profitable areas of the online world.
Following a four-year investigation, 17 state attorneys general have joined the FTC case. Other tech behemoths, such as Alphabet’s Google and Meta’s Facebook, have also faced federal lawsuits.
“The FTC and its state partners say Amazon’s actions allow it to stop rivals and sellers from lowering prices, degrade quality for shoppers, overcharge sellers, stifle innovation, and prevent rivals from fairly competing against Amazon,” the agency said in a statement.
The agency has stated that it will seek a permanent injunction and an order requiring Amazon.com to cease engaging in illegal behavior.
According to the FTC’s lawsuit, Amazon penalized merchants who wished to provide lower pricing than Amazon’s by making it difficult for consumers to find these vendors on the marketplace.
According to other reports, Amazon prioritized its own products over those of competitors in the marketplace.