The complaint outlines detailed allegations that highlight Amazon’s current exploitation of its monopoly power for self-enrichment. Credit: Ascannio via Shutterstock.

The Federal Trade Commission (FTC) and 17 state attorneys general have filed a lawsuit against Amazon.com, claiming that the online retail giant is using unfair tactics to maintain its monopoly status.

According to the complaint, Amazon’s actions harm competition, raise prices for consumers and hinder innovation.

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Amazon accused of unfair tactics

The FTC and state attorneys general accuse Amazon of employing a series of strategies that unfairly eliminate competition and maintain its dominance in the market.

These alleged strategies include preventing rivals and sellers from lowering prices, degrading product quality, overcharging sellers, stifling innovation and hindering fair competition.

Violation of the law based on exclusionary conduct

The complaint asserts that Amazon’s violation of the law is not due to its size but rather its exclusionary conduct.

By suppressing competition in areas such as pricing, product selection and quality, Amazon prevents both current and potential competitors from gaining a foothold in the market.

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This conduct ensures that Amazon remains the dominant force in the industry.

Impact on consumers and businesses

Amazon’s alleged anticompetitive practices affect a substantial portion of the retail industry, impacting hundreds of billions of dollars in sales each year.

Countless products from businesses of all sizes are affected and more than a hundred million shoppers may be impacted by these practices.

For more details, you can read the full report on the FTC’s website here.