FTC's Amazon Antitrust Case Faces Criticism Over Misconceptions
The Federal Trade Commission (FTC) faces criticism over its antitrust case against Amazon and its Prime service. Experts argue the case is built on misconceptions and could set a dangerous precedent if successful.
The FTC's lawsuit, launched in 2022, alleges Amazon's business practices harm competition and consumers. However, a recent study shows consumers have multiple paid retail memberships, indicating a competitive market.
Amazon has responded by relaunching its Seller-Fulfilled Prime (SFP) program with improvements to boost customer satisfaction. Despite this, the FTC claims sellers reliably met their own delivery standards only 56 percent of the time, contradicting its earlier statement of 95 percent.
Legal experts have raised concerns about the FTC's lack of specificity in proposed remedies and evidence supporting its allegations. Amazon has filed a Motion to Dismiss, highlighting these weaknesses. The FTC's market definitions and views on self-preferencing practices have also been criticized as misconstrued and implausible.
The FTC's case against Amazon, if successful, could set a precedent for future monopolization lawsuits without demonstrating harm to competition. This could potentially harm consumers, businesses, and the economy. Amazon's total retail market share of 10 percent, behind Walmart's 12 percent, further challenges the FTC's assertions of market dominance.
