In a significant legal move, Amazon.com is actively seeking the dismissal of an antitrust lawsuit filed by the U.S. Federal Trade Commission (FTC). The FTC alleges that Amazon deployed questionable strategies, including the use of Project Nessie, an algorithm purportedly responsible for inflating prices by over $1 billion. Amazon vehemently denies these claims, stating that the FTC has misunderstood routine retail practices and failed to demonstrate any adverse effects on consumers.
In its motion to dismiss, Amazon underlines its commitment to competitive pricing, swift response to rivals’ discounts, and unparalleled delivery services for its Prime subscribers. The e-commerce giant contends that Project Nessie was discontinued in 2019 and argues that it consistently matches the lowest prices offered by other companies.
This legal dispute is part of a broader trend, with the FTC targeting major players dominating various sectors since 2020. Amazon’s defense positions the company as a consumer-centric platform, asserting that its practices ensure fair pricing and efficient services. The company emphasizes its voluntary seller programs and challenges the FTC’s criticism regarding fees for its fulfillment services.
The FTC’s claim alleges that Amazon’s average fees for sellers rose from 27% in 2014 to 39.5% in 2018. Amazon refutes these assertions, maintaining that it faces robust competition from diverse online superstores and specialized markets, including Walmart, Target, Best Buy, and others.
Amazon’s dismissal plea dismantles the concept of a singular «online superstore» market, arguing that consumers make purchasing decisions based on a variety of factors beyond product categories. As the legal battle unfolds, Amazon seeks to protect its reputation as a consumer-friendly and competitive force in the online retail landscape.
