Bloomberg News reported on Thursday that the U.S. antitrust authority will sue Amazon.com’s (AMZN.O) core online marketplace in the coming weeks, citing papers and sources.
The article said the U.S. Federal Trade Commission (FTC) would allege that Amazon rewards online businesses that utilize its logistical services and punishes those that don’t. Reuters received no response from the e-commerce behemoth. FTC said nothing.
The proposed litigation follows the agency’s recent action against Amazon. The article stated FTC boss Lina Khan’s staff has been working on the case for months and finalizing details, including where to launch the action.
President Joe Biden’s administration is taking many steps to reduce Big Tech’s market power to safeguard consumers, including the lawsuit.
Last Monday, the FTC accused Amazon of enrolling millions of users in its monthly subscription Amazon Prime without their agreement and making it difficult to withdraw.
The FTC is also probing Amazon’s $1.7-billion acquisition of “Roomba” vacuum producer iRobot (IRBT.O).
According to the article, the agency’s antitrust action against Amazon’s online marketplace has been ongoing. According to Bloomberg, Amazon received FTC notification for the initial investigation in June 2019.
These documents asked how Amazon’s warehousing and transportation services affected third-party sellers’ product placements in its online marketplace, including boxes that highlight products.
The newspaper stated the FTC has also requested Amazon’s relationships with Apple Inc (AAPL.O). In 2018, Amazon agreed to sell Apple iPhones, iPads, and other products.
