Amazon reportedly blocks 'junk ads
Amazon reportedly blocks 'junk ads

Amazon to hold discussions with FTC Prior

What To Know

  • According to Politico’s report in July, the impending lawsuit is likely to address a range of Amazon’s business practices and could potentially lead to significant changes in the company’s structure given its $1.
  • This lawsuit stands separate from the one filed by the FTC in June, which alleged that Amazon misled customers into Prime subscriptions and made it challenging to cancel the service.
  • Speaking to The New York Times in 2018, Khan said, “While we appreciate these tech companies as consumers and users, we recognize the concerns surrounding their influence as citizens, workers, and entrepreneurs.
  • Bloomberg characterizes the executive branch’s stance as an attempt to reverse what it views as a prolonged period of insufficient oversight concerning corporate consolidation and market influence.

Amazon is set to hold discussions with the FTC in the coming week ahead of a potential antitrust lawsuit against the e-commerce giant. As reported by The New York Times, FTC Chair Lina Khan and Commissioners Rebecca Kelly Slaughter and Alvaro Bedoya are scheduled to meet with representatives from Amazon.

This meeting is seen as a final attempt for Amazon to persuade the FTC to reconsider before moving forward with legal action under antimonopoly laws.

The FTC initiated an investigation into Amazon’s conduct in 2019, examining whether the company leveraged its power to undermine competition. The probe began by reaching out to third-party vendors on the platform, inquiring about their earnings relative to other marketplaces like eBay and Walmart.

Amazon’s Meeting with FTC Signals Last-Ditch Effort Amidst Looming Antitrust Lawsuit

According to Politico’s report in July, the impending lawsuit is likely to address a range of Amazon’s business practices and could potentially lead to significant changes in the company’s structure given its $1.3 trillion scale. This lawsuit stands separate from the one filed by the FTC in June, which alleged that Amazon misled customers into Prime subscriptions and made it challenging to cancel the service.

Lina Khan has long been critical of Amazon, even during her time as a law student at Yale. She authored a paper that advocated for a reevaluation of antitrust laws in response to the company’s dominance. Her analysis highlighted the need to look beyond consumer prices when assessing antitrust concerns and emphasized the potential for companies to misuse their power for competitive gains.

Speaking to The New York Times in 2018, Khan said, “While we appreciate these tech companies as consumers and users, we recognize the concerns surrounding their influence as citizens, workers, and entrepreneurs. We require a fresh framework and language to evaluate and manage their overwhelming dominance.” Amazon has raised objections to Khan’s involvement in the case due to her academic work and previous statements.

The Biden administration has reportedly become increasingly apprehensive about the sway held by major tech corporations. Bloomberg characterizes the executive branch’s stance as an attempt to reverse what it views as a prolonged period of insufficient oversight concerning corporate consolidation and market influence.

The Department of Justice has filed multiple lawsuits against Meta and Google, with recent court decisions narrowing the scope of certain cases.

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