HomeAmericasBusinessLina Khan Preparing Huge Lawsuit To ‘Break up’ Amazon

Lina Khan Preparing Huge Lawsuit To ‘Break up’ Amazon

Lina Khan Preparing Huge Lawsuit To ‘Break up’ Amazon

SAN FRANCISCO, CA (IANS) – The Lina Khan-led Federal Trade Commission (FTC) is reportedly finalizing a massive antitrust lawsuit against Amazon, a move that could break up parts of the e-commerce giant.

According to a report in Politico, citing people close to the matter, the “wide-ranging lawsuit is expected as soon as August, and will likely challenge a host of Amazon’s business practices”.

The lawsuit might lead to a court-ordered “restructuring of the $1.3 trillion empire”, the report noted.

The FTC has been investigating Amazon for a long time. Among the potential claims are allegations like existing cases like Amazon’s rules requiring third-party retailers to offer their lowest prices on its platform.

“The complaint is likely to focus on challenges to Amazon Prime, Amazon rules that the FTC says block lower prices on competing websites, and policies the FTC believes force merchants to use Amazon’s logistics and advertising services,” the report detailed, citing sources.

Both Amazon and the FTC declined to comment.

On Amazon Prime, the FTC is concerned that the “bundle of services is used to illegally cement the company’s market power”.

The FTC last month sued the e-commerce giant Amazon over alleged ‘deceptive’ tactics to sign up customers for its Prime service.

The complaint, filed in the federal court in the US city of Seattle, said that for years, Amazon has “knowingly duped millions of consumers into unknowingly enrolling in its Amazon Prime service”.

“Specifically, Amazon used manipulative, coercive, or deceptive user-interface designs known as ‘dark patterns’ to trick consumers into enrolling in automatically renewing Prime subscriptions,” read the FTC complaint.

Amazon Prime costs $139 per year and gives consumers access to free two-day shipping, along with access to Prime Video and music streaming.

“Amazon tricked and trapped people into recurring subscriptions without their consent, not only frustrating users but also costing them significant money,” FTC Chair Khan had said in a statement.

“These manipulative tactics harm consumers and law-abiding businesses alike. The FTC will continue to vigorously protect Americans from “dark patterns” and other unfair or deceptive practices in digital markets,” she added.

An Amazon spokesperson had said that the FTC’s claims are false on the facts and the law.

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  • I just love it. Bezos and others hated Trump, and sang Kumbaya around Dems. Now this Dem is sinking the biggest plough thru tech.

    I’m getting my popcorn.

    July 26, 2023
  • What do you expect from a Pakistani!

    Can’t see success so break it up. Would like to see her proposal when Jeff Bezos says: HOW DO YOU PROPOSE TO BREAK UP AMAZON. IAM ALL YEARS.

    If history is a witness. Shareholders have always become richer after a few years of breakup. Bezos will return as the world’s richest again.

    July 26, 2023
  • This is again, democrats hobby/pastime, breaking up successful big companies. They tried with Microsoft for many years, but didn’t go far. Democrats want to spread their philosophy of equity into all domains, break successful big companies and make them smaller so that all copro orations will be the same size.

    July 26, 2023
  • Successful business with honest policy is respectable business, deserving the praise.
    Any business with deceptive policy is a SCAM.
    Be it Amazon or a vendor selling Taco in the street.

    July 27, 2023

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