US Government Accuses Amazon of Engaging in Illegal Monopoly Practices

US regulators have filed a lawsuit against Amazon, accusing the company of illegally maintaining a monopoly power. The Federal Trade Commission (FTC) claims that Amazon employs unfair strategies to drive up prices and stifle competition. In response, Amazon argues that the lawsuit is based on erroneous facts and law, and intends to defend its case in court. This legal action against Amazon is the latest in a series of lawsuits targeting dominant technology companies. US politicians have been calling for measures to promote more competition in online search, retail, and social media, as a few powerful tech firms have garnered significant influence. The FTC, alongside 17 state attorneys, alleges that Amazon acts as a "monopolist" by preventing competitors and sellers from lowering prices, thereby harming product quality, overcharging sellers, stifling innovation, and hindering fair competition. However, Amazon argues that if the lawsuit is successful, it would result in limited product choices, higher prices, and slower deliveries for consumers. This legal action represents another attempt by the US government to challenge the dominance of major tech firms. Earlier this month, Google faced a court battle initiated by the US government, who accused the tech giant of possessing a monopoly in advertising technology. Nevertheless, previous attempts by the FTC to address similar issues with Microsoft and Facebook's parent company, Meta, failed to achieve their intended outcomes.