US regulators have filed a lawsuit against Amazon, claiming that the internet giant is unlawfully sustaining a monopoly position.
The FTC declared that Amazon has engaged in employing a range of techniques to increase prices and inhibit competition.
Amazon stated that the legal action taken against them was based on erroneous facts and misapplied laws, and they are eager to present their argument in court.
It is the most recent tech giant to face legal action from US regulators.
Lina Khan, the head of the FTC, has been targeting Amazon for a number of years.
In 2017, Ms Khan (aged 29 at the time) published a major academic article proposing that the online retailer had evaded regulatory monitoring for anti-competition.
She remarked that Amazon had been aggressive in its drive to please customers, seemingly having a mission to become a monopoly.
Since her appointment as FTC Chair in 2021 came as a surprise, this case has been widely anticipated - and seen as a key trial of her leadership.
Some US politicians have advocated for measures to increase competition in the realms of online search, retail, and social media due to the prevalence of a few commanding tech companies.
Despite Ms Khan's strong warnings to Big Tech, the FTC has had limited tangible success in its stance against them.
In February, the endeavor to keep Meta from purchasing the virtual reality company, Within, was unsuccessful.
In July, an unsuccessful effort was made to obstruct Microsoft's completion of its purchase of the producer of Call of Duty.
Ms Khan is under strain to secure a successful high-profile complaint, with the FTC holding great expectations of the outcome.
The agency, in collaboration with 17 state attorneys, alleges that Amazon is a "monopolist" preventing competitors and vendors from reducing costs.
The regulator claimed that Amazon's actions had a negative effect on the shopping experience, causing sellers to be overcharged, hindering innovation, and blocking competitors from having a fair chance to compete against it.
Amazon has suggested that if the Federal Trade Commission's (FTC) "misguided" lawsuit were to be successful, customers would have decreased options when it comes to products, slower deliveries, and higher prices.
Essential to the situation is the charge that customers sustained losses - obtaining worse prices - due to the supposed monopoly.
Anti-competition legislation in the US can be intricate, yet prosecutors generally need to demonstrate that companies have acted in a manner which causes financial harm to customers.
It can be a challenge to demonstrate the impact of Big Tech, given that a lot of their offerings are free - such as Google's search engine or Meta's Instagram.
This month, a court case commenced between Google and the US authorities, who allege that the tech giant has a monopoly on its advertising technology.
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