US Government accuses Amazon of using its power to inflate prices
The United States Federal Trade Commission (FTC) has filed a long-anticipated anti-trust lawsuit against online retailer Amazon, accusing the company of harming consumers by stifling competition. This lawsuit, follows a four-year investigation. The FTC and its state partners allege that Amazon's actions allow it to thwart rivals and sellers from lowering prices, diminish product quality for shoppers, overcharge sellers, stifle innovation, and prevent fair competition against Amazon.
In detailing its charges, the FTC alleges that Amazon engaged in unfair tactics to "illegally maintain its monopoly power" in the online retail industry. For instance, the agency claims Amazon punishes sellers offering lower prices elsewhere by burying their listings deep in search results. The federal agency has requested the court to issue a permanent injunction against Amazon to halt its unlawful conduct. Amazon responded, asserting the FTC is "wrong on the facts and the law," and accused the federal agency of stifling competition instead of fostering it.
Amazon's general counsel, David Zapolsky, stated that the practices challenged by the FTC have actually promoted competition and innovation, resulting in greater selection, lower prices, and faster delivery for Amazon customers.
In detailing its charges, the FTC alleges that Amazon engaged in unfair tactics to "illegally maintain its monopoly power" in the online retail industry. For instance, the agency claims Amazon punishes sellers offering lower prices elsewhere by burying their listings deep in search results. The federal agency has requested the court to issue a permanent injunction against Amazon to halt its unlawful conduct. Amazon responded, asserting the FTC is "wrong on the facts and the law," and accused the federal agency of stifling competition instead of fostering it.
Amazon's general counsel, David Zapolsky, stated that the practices challenged by the FTC have actually promoted competition and innovation, resulting in greater selection, lower prices, and faster delivery for Amazon customers.
Transcript
00:00 The United States Federal Trade Commission has filed a long-anticipated antitrust lawsuit
00:08 against online retailer Amazon, accusing the company of harming consumers by stifling competition.
00:15 This lawsuit follows a four-year investigation.
00:19 The FTC and its state partners allege that Amazon's actions allow it to thwart rivals
00:25 and sellers from lowering prices, diminish product quality for shoppers, overcharge sellers,
00:32 stifle innovation and prevent fair competition against Amazon.
00:37 The federal agency has requested the court to issue a permanent injunction against Amazon
00:44 to halt what it calls its illegal conduct.
00:47 Amazon has responded, asserting the FTC's rung on the facts and the law, and has accused
00:53 the federal agency of stifling competition instead of fostering it.
00:57 [BLANK_AUDIO]