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Lanon Wee

FTC Could Launch Amazon Lawsuit This Month, Here's What Could Be Impacted

It is predicted that the Federal Trade Commission will file an antitrust lawsuit against Amazon before the end of this month, this is according to The Wall Street Journal and Bloomberg. If the FTC file the lawsuit and win in court, it could result in the break up of the trillion-dollar business. Khan became known in the antitrust world through her 2017 Yale Law Journal article, "Amazon's Antitrust Paradox." In the two years since Lina Khan assumed the role of Federal Trade Commission Chair, her name has been most synonymous with that of Amazon. This is largely due to the great attention her 2017 Yale Law Journal paper, "Amazon's Antitrust Paradox", garnered amongst the antitrust community. The paper argued that the current antitrust laws fail to capture how tech giants like Amazon have come to dominate the digital space. Following this success, Khan quickly became the youngest FTC chair in history. Amazon and Meta both subsequently requested Khan's recusal from their respective antitrust investigations, citing her criticism of their business practices, but the judge presiding over the Meta matter dismissed the request.Since then, the FTC has taken legal actions against tech firms. This included challenging META's acquisition of Within Unlimited, a virtual reality fitness app maker, and suing the Amazon Prime service for consumer protection. As a result of these decisions, those who follow the agency's activities have been awaiting an FTC lawsuit that would target Amazon’s monopoly power.The Wall Street Journal and Bloomberg recently reported that the suit is expected to be filed as early as this month. If successful, the lawsuit could potentially result in the trillion-dollar company being broken up.To that effect, the FTC held a “last rites meeting” with Amazon on Aug. 15, during which a settlement and remedies were not discussed, a source familiar with the matter confirmed to CNBC. It is believed that the lawsuit will target specific elements of Amazon's retail marketplace business, such as Fulfillment by Amazon, its logistics program, as well as pricing by sellers on its site. According to Bloomberg, FTC staff have been interviewing Amazon sellers since prior to Khan's tenure to understand the company's alleged monopolistic practices.The FTC refrained from commenting on the reports, and Amazon declined to comment on the story as reported by The Wall Street Journal.

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