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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.

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.

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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.

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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.


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