A federal judge has ruled that the Federal Trade Commission (FTC) can proceed with its significant antitrust lawsuit against Amazon, marking a major defeat for the e-commerce giant. The judge, John H. Chun, also granted Amazon a minor victory by dismissing some claims made by certain states involved in the legal battle.
The lawsuit, filed in September 2023, stems from a lengthy investigation into Amazon's business practices and is considered one of the most substantial legal challenges the company has faced in its nearly 30-year history. The FTC and attorneys general from 18 states, along with Puerto Rico, have accused Amazon of leveraging its market dominance to inflate prices, overcharge sellers, and stifle competition.
In his order, Judge Chun allowed the federal challenges and many state claims to move forward but dismissed specific claims under state antitrust or consumer protection laws from New Jersey, Pennsylvania, Oklahoma, and Maryland. The trial for the case is scheduled for October 2026.
An FTC spokesperson expressed satisfaction with the court's decision, emphasizing the alleged harm caused by Amazon's monopolistic practices, including suppressed competition and higher prices for consumers and sellers. Amazon, on the other hand, remains confident in its ability to defend its position in court as the case progresses.
In response to the ruling, an Amazon representative disputed the FTC's claims, stating that consumers do not solely consider popular sites like Walmart.com, Target.com, Amazon, and eBay when shopping for household products. The representative asserted that the FTC's approach could make shopping more challenging and costly.
Notably, the FTC is also pursuing legal action against Meta Platforms for alleged monopolistic behavior, while the Department of Justice has filed similar lawsuits against Apple and Google. In a recent development, a federal judge found Google's search engine to be exploiting its dominance illegally to suppress competition and hinder innovation.
