Amazon.com Inc AMZN secured a partial dismissal in a lawsuit filed by the U.S. Federal Trade Commission on Monday. The FTC accused Amazon of maintaining illegal monopolies.
What Happened: The FTC’s lawsuit claims Amazon employs anti-competitive practices to dominate online marketplaces. In December, Amazon requested U.S. District Judge John Chun to dismiss the case, arguing the FTC failed to show consumer harm, reported Reuters.
Judge Chun’s ruling, issued under seal, partially granted Amazon’s motion. Court records indicate the FTC can still pursue claims not permanently dismissed. Chun also decided the case will be tried in two parts, denying Amazon’s request to consolidate evidence and remedies in a single trial.
Why It Matters; This partial dismissal is a significant development in the ongoing antitrust scrutiny faced by Amazon. The FTC’s allegations are part of a broader pattern of antitrust challenges against the e-commerce giant globally.
Recently, an antitrust probe in India accused Amazon and Walmart Inc-owned Flipkart of violating local competition laws by favoring specific sellers on their platforms. The Indian e-retail sector, valued at $57-$60 billion in 2023, is projected to exceed $160 billion by 2028, according to Bain.
Moreover, the FTC recently exposed Amazon’s hidden algorithm, code-named “Project Nessie,” which allegedly manipulated prices to test competitors’ reactions. These revelations are part of the FTC’s monopoly lawsuit against Amazon, highlighting the company’s controversial practices.
Additionally, Amazon’s competitive landscape is evolving. In a recent antitrust trial, Alphabet Inc executive Jerry Dischler testified that Google is losing market share to emerging players like Amazon and TikTok. This underscores the increasing competition Amazon faces in the digital advertising space.
Price Action: Amazon stock closed at $186.33 on Monday, down 0.87% for the day. In after-hours trading, the stock slipped further by 0.34%. Year to date, Amazon’s stock has gained 24.28%, according to data from Benzinga Pro.
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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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