A federal judge has given the green light for the Federal Trade Commission (FTC) to pursue its landmark antitrust lawsuit against Amazon, dealing a significant blow to the e-commerce giant's efforts to have the case dismissed.
Judge John H. Chun of the US District Court for the Western District of Washington rejected Amazon's motion to dismiss several federal claims based on the FTC Act and the Sherman Act. The ruling allows the FTC to move forward with its allegations that Amazon illegally maintains a monopoly in the e-commerce market.
In his order, Judge Chun noted that when viewing allegations that Amazon forces sellers to use its services "in the light most favourable" to the government, the claims are "plausibly" anticompetitive. However, he added that any pro-competitive business justifications for its policies "are improper to consider at this stage" and would become relevant at trial.
FTC looks forward to moving this case forward, says Amazon’s illegal monopoly will be on full display at trial
"We are pleased with the court's decision and look forward to moving this case forward," said FTC spokesperson Douglas Farrar. "The ways Amazon illegally maintains its monopolies and the harm they cause — including suppressed competition and higher prices for shoppers and sellers — will be on full display at trial."
The lawsuit, filed in September 2023, accuses Amazon of anticompetitive practices, including punishing sellers who offer lower prices on other platforms and effectively requiring them to use Amazon's fulfilment services for prime positioning on the site.
While the judge allowed the federal claims to proceed, he dismissed some state-level allegations. Attorneys general from 18 states and Puerto Rico had joined the FTC's suit, but claims under certain state antitrust and consumer protection laws were not permitted to move forward. Judge Chun did, however, give the states a chance to refile some of these claims.
Amazon confident that FTC’s claims will not hold up at the court
Amazon, however, remains confident in its position. Company spokesperson Tim Doyle stated, "The early stage ruling requires the court to assume all facts alleged in the complaint are true. They are not." He added, "Moving forward the FTC will have to prove its claims in court, and we're confident those claims will not hold up when the FTC has to prove them with evidence."
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