FTC Allegedly Approaching Conclusion of Its Largest Antitrust Case Against Amazon to Date

Reports indicate that the Federal Trade Commission (FTC) is reaching the final stages of its significant antitrust investigation into Amazon. Bloomberg reveals that the agency is expected to file a lawsuit against the tech giant in the coming weeks.

Based on reviewed documents and insider sources, the upcoming lawsuit will assert that Amazon engages in systematic practices that disadvantage merchants who opt out of certain "optional" services, such as "Fulfilled by Amazon." If the FTC can demonstrate that Amazon is deliberately manipulating a market in which it wields substantial power, it could argue for the need to break up or restructure the company.

However, proving such allegations presents a challenge, as Amazon has thrived under the interpretation that if consumer welfare remains unaffected, even actions resembling a monopoly are permissible. FTC Chair Lina Khan, known for challenging this doctrine in a notable law review article, has emerged as a prominent figure and a potential threat to the flourishing tech industry.

This case serves as a critical test for Khan's argument that forms of monopoly can manifest in alternative ways, with Amazon serving as a prime example. Establishing a precedent that highlights the risks associated with leveraging network effects and abundant resources to undercut and replace competitors would result in a seismic shift in regulatory practices.

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