Amazon asks federal judge to dismiss the FTC鈥檚 antitrust lawsuit
Dec 11, 2023, 10:38 AM | Updated: 10:42 am
FILE - The Amazon Prime logo appears on the side of a delivery van as it departs an Amazon Warehouse location, Oct. 1, 2020, in Dedham, Mass. Amazon announced at a conference for delivery firms on Tuesday, Sept. 12, 2023, that it will invest $440 million over the next year to increase pay rates for drivers. It did not disclose how much the bump will be, but said it expects U.S. drivers to earn an average of $20.50 per hour. (AP Photo/Steven Senne, File)
Credit: ASSOCIATED PRESS
(AP Photo/Steven Senne, File)
Attorneys for Amazon on Friday asked a federal judge to dismiss the Federal Trade Commission鈥檚聽聽against the e-commerce giant, arguing the agency is attacking policies that benefit consumers and competition.
Amazon鈥檚 response came more than two months after the FTC 鈥� joined by 17 states 鈥� filed the historic complaint against the Seattle-based company, alleging it inflates prices and stifles competition in what the agency calls the 鈥渙nline superstore market鈥� and in the field of 鈥渙nline marketplace services.鈥�
In its 31-page filing made in a federal court in Washington state, Amazon pushed back, arguing the conduct that the FTC has labeled anti-competitive consists of common retail practices that benefit consumers.
The FTC鈥檚 complaint, filed in September, accused the company of engaging in anti-competitive practices through measures that deter third-party sellers from offering lower prices for products on non-Amazon sites.
The agency said Amazon buried listings offered at lower prices on other sites. Simultaneously, it noted Amazon was charging merchants increasingly higher fees and driving up prices for products on its own site. It also alleged Amazon kept sellers dependent on services, such as its logistics and delivery service, which have allowed it to collect聽 every year.
In its request for a dismissal, Amazon said the lawsuit faults Amazon for featuring competitive prices and declining to feature uncompetitive ones.
鈥淎mazon promptly matches rivals鈥� discounts, features competitively priced deals rather than overpriced ones, and ensures best-in-class delivery for its Prime subscribers,鈥� the company wrote in the filing. 鈥淭hose practices 鈥� the targets of this antitrust Complaint鈥� benefit consumers and are the essence of competition.鈥�
Amazon also pushed back against allegations it conditions Prime eligibility on products 鈥� which denotes fast shipping 鈥� on whether sellers use its fulfillment service, Fulfillment by Amazon.
An unredacted version of the FTC鈥檚 lawsuit聽聽alleged Amazon used a tool 鈥� codenamed 鈥淧roject Nessie鈥� 鈥� to predict where it can raise prices and have other shopping sites follow suit. The agency said Amazon used the algorithm to raise prices on some products and kept the new elevated prices in place after other sites followed its lead.
In its filing Friday, Amazon said it experimented with the 鈥渁utomated pricing system鈥� Nessie years ago. It posited Nessie was intended to 鈥渕atch to the second-lowest competitor instead of the absolute lowest鈥� for 鈥渓imited products and duration.鈥� The company also said it stopped the experiments in 2019, and matches its prices to the lowest prices today.
Amazon also pushed back on the agency鈥檚 allegations that the company is a monopoly. It said in its filing that it faces competition from small retailers to large online and brick-and-mortar businesses like Walmart, Target, Best Buy and Apple, among others.
