Amazon.com Inc. has won a partial dismissal of a lawsuit brought by the US Federal Trade Commission (FTC), which accused the company of maintaining illegal monopolies.
The details of the ruling issued by a federal court in Seattle on Monday are still unclear. However, the court allowed the FTC to continue pursuing some claims against Amazon, indicating that not all allegations have been dismissed.
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Amazon's Alleged Anti-Competitive Practices
The FTC has accused the online retailer of using anti-competitive tactics to maintain its dominance in the e-commerce sector, specifically among online superstores and marketplaces.
In December, Amazon requested US District Judge John Chun to dismiss the case, arguing that the FTC had not presented any evidence showing that its actions harmed consumers.
In response to this request, Chun issued a sealed ruling that partially granted Amazon's motion, allowing the FTC to pursue claims that were not permanently dismissed.
Chun also decided that the case will be tried in two phases. He rejected Amazon's request to allow the FTC to present evidence of the alleged violations and its proposed remedies in a single trial, according to Reuters.
This ruling means that the legal proceedings will be separated into two distinct parts, which could impact how the case develops.
The FTC's accusations highlight concerns about the company's influence in the market and the effects it may have on competition. The commission argues that Amazon's practices could lead to higher prices and fewer choices for consumers.
The FTC's complaint details how Amazon allegedly prioritizes its own products over those of third-party sellers in search results. This practice may limit the visibility and sales opportunities for these sellers, making it difficult for them to compete fairly.
According to the FTC, Amazon also pressures sellers to use its own logistics services, which can be costly, to gain advantages in the marketplace. These practices, the FTC claims, create an unfair environment that harms both consumers and independent businesses.
Amazon previously insisted that it provides benefits to consumers and fosters competition within the retail sector. The company argued that its business model leads to lower prices and a wider selection of products.
Amazon's representatives have stated that the lawsuit could lead to negative consequences for consumers, such as limited choices and higher prices.
The ongoing legal battle against Amazon comes amid a broader examination of large tech companies by regulators. Amazon is not the only tech giant facing scrutiny; other companies like Google and Meta have also faced allegations related to anti-competitive behavior.
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