Today, Explained

Why the US is suing Amazon

7 snips
Sep 27, 2023
Join reporter Makena Kelly from The Verge and former FTC director Bill Baer as they dive into the pivotal antitrust lawsuit against Amazon. They discuss how this landmark case aims to reshape monopoly regulations under Lina Khan's leadership. The conversation explores the implications for market competition and small businesses, as well as how Amazon's legal challenges reflect broader shifts in antitrust considerations for tech giants. Discover the evolving definition of consumer welfare and the potential long-term effects on regulatory policies.
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INSIGHT

Amazon's Anti-Competitive Practices

  • The FTC is suing Amazon for leveraging its market dominance to stifle competition.
  • This includes burying lower-priced listings from third-party sellers and charging exorbitant fees.
INSIGHT

Amazon's Advertising Practices

  • The FTC's lawsuit challenges Amazon's control over search listings and advertising.
  • Third-party sellers often buy ads to ensure visibility, further enriching Amazon.
ANECDOTE

Amazon's Response to the Lawsuit

  • Amazon and industry trade groups argue the FTC's focus is on competition against Amazon, not consumers.
  • They highlight the lawsuit's emphasis on "sellers" rather than "consumers."
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