Washington – As reported by Bloomberg in the coming weeks the Federal Trade Commission is expected to file a lawsuit against Amazon that could break Amazon Prime’s free two-day shipping and force divestiture of the company’s logistics critical to the business model that enables small and medium-sized sellers to sell through Amazon’s store.
In the lawsuit, the FTC’s main allegation is expected to be that Amazon leverages its position to reward online merchants that use its logistics services and punish those who don’t, and the agency is not expected to accept compromises, thereby seeking to restructure the company.
FTC Chair Khan, whose most notable academic work was a paper arguing that Amazon’s practices and low prices harmed consumers, previously declined to recuse herself from the matter.
The Computer & Communications Industry Association has advocated for competition in the tech industry for 50 years.
The following can be attributed to CCIA President Matt Schruers:
“It’s difficult to understand why at a time when Americans are frustrated with rising prices, the FTC is prioritizing a case against a service that consumers love, which enables small and medium-sized sellers to reach customers worldwide.
“What has given the U.S. a more competitive tech industry that benefits consumers and lowers prices has been a legal and regulatory framework that focuses on how companies’ actions impact consumers — not other would-be competitors. While consumers complain of high prices for prescription drugs, food, and gasoline, digital goods and services are getting more affordable all the time, with many offering free products and free shipping. Consumers are best served when regulators focus on consumer harm, and in industries where prices are high due to lack of competition.”