Amazon: FTC files monopoly lawsuit

(CercleFinance.com) - On Tuesday US authorities announced that they had filed charges against Amazon, accusing it of illegally maintaining a monopoly position.


The Federal Trade Commission, the body responsible for antitrust matters in the US, accuses the online retail giant of hindering competition in its market.

FTC says that this strategy not only strengthened its monopoly and inflated prices, but also deteriorated service quality and stifled innovation that could have benefited consumers and businesses alike.

The proceeding finds that Amazon violates the law not only because of its size, but also because the company engages in exclusionary behavior that prevents existing competitors from growing and new competitors from emerging, the agency adds.

For example, if Amazon discovers that a seller is offering prices lower than its own, the company may decide to relegate its discounted products so far down its search results that they become, by definition, invisible, the FTC says.

Washington also cites a deterioration of the customer experience due to Amazon's tendency to replace the most relevant search results with sponsored products.

On Wall Street, Amazon shares closed down over 4% yesterday, these accusations - they are just positive in PMT today, however


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