Washington – The Federal Trade Commission, and 17 state attorneys general, have announced a case in federal district court challenging Amazon’s popular retail services. Although almost every large retail business, including online and in-store retail, uses similar strategies, the FTC is essentially arguing that Amazon’s policies to obtain lower prices for consumers on its service harms competitors.
Other allegations involve Amazon’s retail pricing model that keeps prices low and identifies when customers are seeing the lowest current price for a product. Outlawing these tools could mean higher prices for consumers and benefit competitors.
The Computer & Communications Industry Association has advocated for competition in the tech industry for over 50 years.
The following can be attributed to CCIA President Matt Schruers:
“In an environment of ever-rising prices and persistent product scarcity, the FTC is bringing a case against a wildly popular brand best known for getting low-priced goods to your doorstep, by tomorrow. This case is out of touch with the concerns of everyday consumers.”
“Competition should promote consumers’ welfare, not welfare for competitors. For years, this consumer-oriented yardstick in U.S. antitrust law has helped to foster a highly competitive, connected economy that benefits consumers and lowers prices. Regulators shouldn’t change course amid these uncertain economic times.
“At a time when the public faces rising prices on necessities, they can shop online for competitive offers a few clicks away, often on free services with free shipping. Smart antitrust policy happens when regulators focus on consumer harm, rather than targeting innovative sectors where customers are satisfied. The FTC’s case would result in fewer products to choose from, higher prices for consumers, and reduced options.”
