Jul 26, 2023
The Federal Trade Commission (FTC) is readying an antitrust lawsuit against Amazon that could “ultimately break up parts of the company,” according to Politico, in what could be the latest move by the Biden administration to rein in Big Tech.
Politico, a Washington-based political news company, cited four people with knowledge of the matter (who were granted anonymity to discuss the confidential information) and said that the lawsuit is expected to be filed as soon as August.
What the focus may be
While the exact details of the lawsuit remain unknown, it’s expected to take aim at a number of the company’s business practices, reports Politico, citing its sources.
Advertisement
Some of the sources, Politico says, revealed the complaint is likely to focus on Amazon Prime, the tech giant’s digital advertising business and its logistics services. The lawsuit may also address Amazon policies the FTC believes mandate third-party retailers to offer their lowest prices on its platform, preventing cheaper prices elsewhere.
Must Read
- Dave Ramsey warns nearly 50% of Americans are making 1 big Social Security mistake — are you doing the same?
- Thanks to Jeff Bezos, you can now become a landlord for as little as $100 — and no, you don't have to deal with tenants or fix freezers. Here's how
- Robert Kiyosaki says this 1 asset will surge 400% in a year and begs investors not to miss this ‘explosion’
Join 250,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
Why now?
While the Amazon investigation began during the Trump administration, it’s now taken off under current FTC chair Lina Khan, whose leadership has already helped push multiple cases against the tech giant.
In the past, Amazon has dealt with privacy lawsuits involving its Ring doorbell cameras and Alexa smart speakers made for kids, and is currently battling allegations that it made Prime difficult to cancel.
The FTC is also probing the company’s $1.7 billion acquisition of robot vacuum maker iRobot.
Other states could join the case
Some sources, Politico says, also revealed the FTC is likely to file its case in federal court, allowing state attorneys general on board for the case.
California, Washington, D.C. and New York are also investigating Amazon, according to Politico.
Politico says spokespeople for Amazon and the FTC declined to comment.
You May Also Like
- Turning 50 with $0 saved for retirement? Most people don’t realize they’re actually just entering their prime earning decade. Here are 6 ways to catch up fast
- Inside a $1B real estate fund offering access to thousands of income-producing rental properties — with flexible minimums starting at $10
- Vanguard’s outlook on U.S. stocks is raising alarm bells for retirees. Here’s why and how to protect yourself
- Here are 5 easy ways to own multiple properties like Bezos and Beyoncé. You can start with $10 (and no, you don’t have to manage a single thing)
Serah Louis is a reporter with Moneywise.com. She enjoys tackling topical personal finance issues for young people and women and covering the latest in financial news.
