Judge Rules The FTC Can Proceed With Antitrust Lawsuit Against Amazon, Tosses Out Few State Claims

A federal judge ruled that the Federal Trade Commission can proceed with its blockbuster antitrust lawsuit against Amazon. However, he did give the firm a modest victory by dismissing a few allegations made by states interested in the legal dispute.

The order, granted last week by Judge John H. Chun and unsealed on Monday, is a significant defeat for Amazon, which has attempted for months to have the lawsuit dismissed in court. A trial in the case is scheduled for October 2026.

“We are pleased with the court’s decision and look forward to moving this case forward,” FTC spokesperson Doug Farrar said in a prepared statement. “The ways Amazon illegally maintains its monopolies and the harm they cause—including suppressed competition and higher prices for shoppers and sellers—will be on full display at trial.”

Judge Rules The FTC Can Proceed With Antitrust Lawsuit Against Amazon, Tosses Out Few State Claims

The FTC and the attorneys general of 18 states, including Puerto Rico, have sued the e-commerce juggernaut, alleging that it is abusing its market position to raise prices on and off its platform, overcharge vendors, and discourage new competitors.

The case, filed in September 2023, is the culmination of a years-long probe of the company’s operations and is one of the most major legal challenges to Amazon in its almost 30-year history.

US authorities and state attorneys general have accused the online retailer of breaking federal and state antitrust and consumer protection laws.

Judge Chun of the United States District Court for the Western District of Washington issued the ruling allowing the federal challenges and many of the state claims to proceed. However, he dismissed some allegations filed by New Jersey, Pennsylvania, Oklahoma, and Maryland under state antitrust or consumer protection statutes.

Amazon, for its part, expressed confidence that it could prove its claim in court as the matter moves forward.

“The ruling at this early stage requires the court to assume that all of the facts asserted in the complaint are accurate. They are not,” Tim Doyle said in a statement, adding that the agency’s case “falsely” alleges people only shop for household products on prominent websites such as Walmart.com, Target.com, Amazon, and eBay.

Judge Rules The FTC Can Proceed With Antitrust Lawsuit Against Amazon, Tosses Out Few State Claims

“Moving forward the FTC will have to prove its claims in court, and we’re confident those claims will not hold up when the FTC has to prove them with evidence,” Doyle said to the press. He also stated that the FTC’s strategy “would make shopping more difficult and costly.”

The FTC is also targeting Meta Platforms for alleged monopolistic actions, while the Department of Justice has sued Apple and Google with some success.

In August, a federal judge declared that Google’s ubiquitous search engine is improperly using its power to impede competition and innovation.

SOURCE | AP