FTC antitrust case against Amazon moves forward, several state claims dismissed

The Federal Trade Commission’s (FTC) antitrust case against Amazon will move forward, but several state claims against the e-commerce giant were dismissed, according to a newly unsealed ruling. 

In a ruling filed last week under seal, U.S. District Judge John Chun dismissed claims brought by Pennsylvania, New Jersey, Oklahoma and Maryland. However, Chun denied Amazon’s motion to dismiss the FTC’s claims, as well as several other state claims. 

“We are pleased with the court’s decision and look forward to moving this case forward,” FTC spokesperson Douglas Farrar said in a statement.  

“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,” Farrar continued. “This case ultimately seeks to pry loose Amazon’s monopolistic control and restore competition.”  

The FTC and 17 states sued Amazon in September 2023 for allegedly engaging in anticompetitive practices that harm both shoppers and sellers. Puerto Rico and Vermont also joined the suit in March. 

The agency accused Amazon of keeping prices higher across the internet by using anti-discounting tactics that deter other online retailers from offering lower prices.  

It also argued the e-commerce giant makes it more expensive for sellers to offer their products on other platforms by tying their eligibility for Prime to their use of Amazon’s fulfillment services.   

However, Amazon argued in its motion to dismiss that its practices actually “benefit consumers and are the essence of competition.”   

Following the judge’s decision, Amazon spokesperson Tim Doyle noted that the court must assume all facts alleged in the complaint are true at this stage of the case. 

“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,” Doyle said in a statement.  

“The truth is that Amazon’s practices are good for competition, consumers, and the small- and medium-sized businesses that sell in our store, while the FTC’s approach would make shopping more difficult and costly,” he added.