FTC Protests Amazon’s Push to Dismiss Antitrust E-Commerce Suit

The Federal Trade Commission is urging a Seattle federal court to hear its landmark antitrust lawsuit against Amazon.com Inc. accusing the e-commerce giant of monopolizing online marketplace services, despite Amazon’s efforts to dismiss the case.

Amazon stated in a December filing that the FTC’s complaint fails to prove the online retailer’s conduct harms consumers and relies on anecdotal evidence from online sellers. But the company’s characterization is premature and should be hashed out in court, the FTC’s lawyers argued on Tuesday in a response to Amazon’s motion to dismiss.

The e-commerce lawsuit against Amazon is part of the Biden administration’s broader push to rein in tech giants’ dominance through antitrust enforcement.

See earlier: Amazon Seeks Dismissal of FTC Antitrust Lawsuit

“Amazon’s tactics are part of an interconnected and mutually reinforcing strategy to unlawfully maintain its monopolies,” the FTC argued in its filing. “Amazon’s motion fails because it focuses on individual acts in isolation, ignoring the synergistic effect of the challenged conduct.”

The FTC sued Amazon in September over allegations the online retailer harmed consumers by causing prices to go up on other websites, citing testimony from online brands and sellers who claim Amazon would retaliate against them for offering lower prices on competing sites. Amazon maintains a monopoly over the online marketplace by overcharging sellers and degrading quality for shoppers, the agency claims.

Amazon has challenged the FTC’s authority to file the lawsuit in federal court. The antitrust agency contested this argument in its Tuesday filing, referring to precedent from the US Court of Appeals for the Ninth Circuit.

The online retailer has also pushed to dismiss the FTC’s claim that its old pricing algorithm called Project Nessie was used to manipulate higher prices and generate additional company profits. The agency, in its response, said Amazon recently considered reactivating Nessie and the algorithm should thus be included in the complaint as a potential unfair method of competition.

The case is Federal Trade Commission v. Amazon.com Inc, W.D. Wash., No. 23-cv-01495, 2/6/24.