The Federal Trade Commission supported by 17 states has filed a lawsuit alleging that Amazon has violated antitrust laws in its interactions with retail merchants.  The Government alleges that sellers on Amazon were forced to use Company logistic services and the Company employed anti-discounting measures.  The activities of Amazon according to the FTC, illegally restricted sellers’ choices and reduced product selection.

Lena Khan the FTC Chair initiated Amazon antitrust considerations in a 2017 Yale Law Journal article.  She commented, “Amazon is now exploiting the monopoly power to enrich itself while raising prices and degrading service for the tens of millions of American families who shop on its platform and the hundreds of thousands of businesses that rely on Amazon to reach them. 

It is estimated that Amazon now dominates online retail with 38 percent of the market in the U.S.  It is also the world’s largest cloud-computing company and a major digital advertiser.  Scrutiny by the FTC commenced during the previous Administration but the FTC action at the end of September represents the initiation of litigation that could lead to the breakup of the company.  It is rare for the FTC and the Department of Justice to attempt to dismember large companies through monopoly lawsuits.  Most regulatory action involves blocking mergers such as the proposed acquisition of Albertsons Corp. by the Kroger Company.  It is questioned whether the FTC will be able to prevail in its claim that Amazon is a monopoly based on previous unsuccessful actions including failure to block acquisitions in the high tech and pharmaceutical industries.