NEW YORK, NY (Reuters) – Amazon is facing an antitrust lawsuit filed by the U.S. Federal Trade Commission (FTC) and 17 state attorneys general. The lawsuit claims that Amazon engages in monopolistic pricing towards customers and charges excessive fees to its third-party sellers. However, Amazon argues that its pricing tactics are designed to foster competition among its merchants both on and off of its platform. The company warns that reconstructing its business models may lead to higher prices and slower and less reliable shipping speeds.
The FTC’s lawsuit is expected to encounter numerous obstacles, but it serves as a warning for other online marketplaces in the U.S. about how they interact with customers and third-party sellers. In fact, several retailers have launched their own online marketplaces since the FTC began investigating Amazon in 2019. These retailers and their respective announcement dates are as follows:
Company name Announcement date
Tik Tok Shop (US) September 12, 2023
Shein May 4, 2023
Kohl’s March 29, 2023 **
Expanded pilot
Michaels February 27, 2023
Macy’s September 28, 2022
Temu September 13, 2022
Bed, Bath and Beyond (now November 21, 2021
Overstock.com)
Hudson’s Bay March 22, 2021
Kroger August 11, 2020
Target+ February 25, 2019
(Reporting by Arriana McLymore in New York City; Editing by David Gregorio)
Credit: The Star : Tech Feed
