In a major development for the Federal Trade Commission (FTC), a federal judge has ruled that the agency can move forward with its landmark antitrust lawsuit against Amazon.
Filed in September 2023, this lawsuit accuses the retail giant of monopolistic practices that stifle competition, inflate prices, and harm both sellers and consumers. The ruling, delivered last week by Judge John H. Chun and unsealed on Monday, is a setback for Amazon, which has sought to have the case dismissed. However, the court did throw out some claims from individual states involved in the lawsuit.
Key Aspects of the Lawsuit
The FTC, alongside attorneys general from 18 states and Puerto Rico, alleges that Amazon abuses its dominant market position to control prices both on and off its platform. Specific accusations include overcharging sellers, suppressing competition, and forcing sellers to use Amazon’s fulfillment services for better product placement. The case is one of the most significant legal challenges in Amazon’s 30-year history and comes after years of investigation into the company’s business practices.
Despite the dismissal of a few claims from New Jersey, Pennsylvania, Oklahoma, and Maryland—under their respective state antitrust and consumer protection laws—the majority of federal and state-level accusations will move forward. These include claims tied to the FTC Act and the Sherman Act, central pieces of U.S. antitrust law.
Implications for Amazon and the Marketplace
The ruling allows the FTC to continue its efforts to challenge Amazon’s market dominance, with the agency seeking to dismantle monopolistic controls and restore competition in the online marketplace. Doug Farrar, a spokesperson for the FTC, expressed optimism, stating, “The ways Amazon illegally maintains its monopolies and the harm they cause—including suppressed competition and higher prices for shoppers and sellers—will be on full display at trial.”
Amazon, on the other hand, remains defiant. In a statement, Tim Doyle, an Amazon spokesperson, stressed that the ruling is based on the assumption that all claims made in the FTC’s complaint are true. “They are not,” Doyle asserted, adding that the company believes the case will not hold up under scrutiny in court.
The Broader Context: Antitrust Actions in Big Tech
This lawsuit against Amazon is part of a broader movement by U.S. regulators to rein in the monopolistic power of major tech firms. The FTC is also pursuing legal action against Meta (formerly Facebook) for similar reasons, while the Department of Justice (DOJ) has filed antitrust lawsuits against Google and Apple. In a similar case, a federal judge ruled in August that Google’s search engine unfairly exploits its dominance, illustrating the growing momentum behind these antitrust efforts.
Should the FTC succeed, the consequences for Amazon could be profound. The company’s business model—centered on its control over pricing, marketplace policies, and fulfillment services—could be fundamentally altered, affecting both its relationship with third-party sellers and its influence over the broader e-commerce landscape.
What’s Next?
The trial is scheduled for October 2026, and both sides are preparing for what promises to be a complex and lengthy court battle. Judge Chun’s decision to allow the FTC’s claims to proceed is not a final ruling on the merits of the case, but it does set the stage for a critical legal confrontation. Chun noted that the FTC’s allegations are “plausibly” anticompetitive, meaning the agency has cleared the hurdle to present its evidence in court. At the same time, the judge acknowledged that Amazon’s arguments justifying its business practices will be considered at trial.
As the legal process unfolds, this case could serve as a precedent for future antitrust actions against other tech giants, shaping the future of competition law in the digital marketplace. The eventual outcome could have far-reaching implications not only for Amazon but for the entire tech industry and consumers alike.
In the meantime, Amazon will likely continue to defend its business practices aggressively, while the FTC will work to prove that the company’s alleged monopolistic behavior has harmed both sellers and shoppers. The stakes are high for both sides, as the outcome could significantly impact the way Amazon operates in the future.
