Amazon, the e-commerce giant, has sought the dismissal of an antitrust lawsuit filed by the U.S. Federal Trade Commission (FTC), contending that the allegations of illegal practices causing consumer harm are unfounded. In a motion filed on Friday, Amazon argued that the FTC failed to distinguish between standard retail practices and anticompetitive behavior.
The lawsuit, initiated in September, accused Amazon of employing illicit strategies, including an algorithm dubbed “Project Nessie,” which allegedly inflated prices by over $1 billion. Amazon vehemently denies these claims, asserting that the FTC failed to demonstrate any tangible harm to consumers resulting from its business practices.
Amazon emphasized its commitment to fair competition, highlighting its practice of promptly matching competitors’ discounts, providing competitive deals, and ensuring top-notch delivery services for Prime subscribers. The company insisted that these practices align with common industry standards and do not infringe upon antitrust regulations.
The FTC’s lawsuit targeted Amazon’s alleged use of Project Nessie, a secret algorithm designed to identify products for price increases without losing customers. Amazon clarified that Nessie was discontinued in 2019 and challenged the FTC’s claim of extracting over $1 billion from Americans.
Additionally, the FTC criticized Amazon’s requirement for sellers under the Prime feature to use its logistics and delivery services, even when other alternatives were more cost-effective. Amazon countered this, stating that participation in its fulfillment services was voluntary, including for Prime products. The company argued that fees for sellers increased from 27% in 2014 to 39.5% in 2018, reflecting the evolution of its services.
Amazon further pointed out its competition with other online superstores such as Walmart and Target, as well as specialized market stores like Best Buy, Home Depot, Kroger, Costco, Staples, Walgreens, Nike, and Apple. The company dismissed the FTC’s portrayal of an “online superstore” market as implausible, arguing that consumers consider various factors when making purchases across different platforms.
As the legal battle unfolds, Amazon remains steadfast in challenging the allegations, asserting its commitment to fair competition and dismissing the notion of consumer harm resulting from its business practices.
