The Federal Trade Commission's antitrust case against Amazon will move forward, but several states' claims against the e-commerce giant have been dismissed, according to a newly released ruling.
In a decision filed privately last week, U.S. District Judge John Chun dismissed the lawsuits from Pennsylvania, New Jersey, Oklahoma and Maryland. However, Chun rejected Amazon's motion to dismiss the FTC's claims, as well as claims from several other countries.
“We are pleased with the court's decision and look forward to moving this case forward,” FTC spokesman Douglas Farrar said in a statement.
“The way Amazon illegally maintains its monopoly and the harms it causes, including stifling competition and inflating prices for shoppers and sellers, will be fully exposed at trial,” Farrar continued. “This lawsuit aims to ultimately break Amazon's monopolistic grip and restore competition.”
The FTC and 17 states sued Amazon in September 2023, accusing it of engaging in anticompetitive practices that harmed both shoppers and sellers. Puerto Rico and Vermont joined the lawsuit in March.
The agency accused Amazon of using anti-discount tactics to keep prices high across the internet by discouraging other online retailers from offering lower prices.
The e-commerce giant also claimed that by tying Prime eligibility to using Amazon's fulfillment services, it made it more costly for sellers to offer their products on other platforms.
But in its motion to dismiss, Amazon argued that its practices actually “benefit consumers and are of the essence of competition.”
In response to the judge's ruling, Amazon spokesman Tim Doyle said that at this stage in the case, the court must assume all the facts alleged in the complaint are true.
“The FTC will now have to prove its case in court, and I am confident that its claims will not hold up if the FTC has to prove them with evidence,” Doyle said in a statement. .
He continued, “The truth is that while Amazon's approach is good for competition, consumers, and the small businesses that sell in our stores, the FTC's approach will make shopping more difficult and more expensive.'' Dew,” he added.
