Amazon Gets Partial Dismissal of FTC’s Landmark Monopoly Lawsuit

Amazon.com Inc. won dismissal of part of the Federal Trade Commission’s monopoly lawsuit as the case move towards a trial, according a to a sealed order.

Judge John H. Chun of the US District Court for the Western District of Washington granted in part and denied in part Amazon’s motion to dismiss the lawsuit, which alleges the e-commerce giant monopolizes online marketplace services. It wasn’t immediately clear which parts of the case will proceed, as Chun temporarily kept the order sealed for parties to request redactions.

Chun’s order late Monday also agreed with the FTC’s request to focus the trial solely on Amazon’s alleged liability, with possible remedies to be discussed later. The judge previously scheduled a bench trial in the case for October 2026.

The FTC and Amazon declined to comment.

The FTC and a coalition of states in September sued Amazon in Seattle federal court, alleging the tech giant engages in anticompetitive conduct that stifles competition in e-commerce and ultimately hurts consumers.

Among other things, the commission alleges that Amazon curbs online competition by prohibiting third-party sellers from offering lower prices on other sites. Amazon also unduly favors its own retail business against third-party sellers, according to the FTC.

The practices “the FTC is challenging have helped to spur competition and innovation across the retail industry, and have produced greater selection, lower prices, and faster delivery speeds for Amazon customers and greater opportunity for the many businesses that sell in Amazon’s store,” David Zapolsky, Amazon’s general counsel, said in a statement following the lawsuit.

The Monday order noted that the FTC will have until the end of October to file an amended complaint related to “any claims dismissed without prejudice.” Chun also set a Oct. 14 deadline for the FTC and Amazon to file a joint statement on requested redactions.

Amazon is represented by law firms including Williams & Connolly and Covington & Burling LLP.

The case is FTC v. Amazon Inc., W.D. Wash., 2:23-cv-01495-JHC, sealed order 9/30/24