A federal judge in Seattle has allowed the majority of the U.S. antitrust lawsuit against Amazon to proceed after issuing a sealed order on the company’s motion to dismiss. The ruling by U.S. District Judge John H. Chun includes allowing claims related to Fulfillment by Amazon, the Buy Box on Amazon.com, and the “Project Nessie” pricing algorithm to move forward. Plaintiffs such as the Federal Trade Commission and several states benefit from an assumption that their claims are true for legal validity purposes at this stage of the litigation.
While initial coverage labeled the ruling as a “partial victory” for Amazon, it is revealed that the parts where the company was successful in dismissing were relatively minimal. Specific aspects of the state claims brought by Pennsylvania, New Jersey, Oklahoma, and Maryland were the areas in which the judge granted Amazon’s motion to dismiss. Eighteen states and one territory, Puerto Rico, joined the FTC in the lawsuit against Amazon. Overall, the majority of the allegations in the lawsuit are allowed to proceed following the unsealing of the ruling.
Amazon’s spokesperson Tim Doyle responded to the ruling, highlighting that the court is required to assume all facts alleged in the complaint are true at this early stage. However, Amazon disputes some of the claims made by the FTC, including the assertion that consumers only consider Walmart.com, Target.com, Amazon, and eBay when shopping for household products. Doyle also stated that Amazon’s practices are beneficial for competition, consumers, and small- and medium-sized businesses selling on their platform. Amazon is confident that the FTC’s claims will not hold up when supported by evidence in court.
The FTC’s spokesperson Douglas Farrar expressed satisfaction with the court’s decision and looks forward to moving the case forward. The FTC believes that Amazon unlawfully maintains monopolies using anticompetitive and unfair strategies that harm competition and lead to higher prices for shoppers and sellers. The ultimate goal of the lawsuit is to loosen Amazon’s monopolistic control and restore competition in the marketplace. The complaint, initially filed in September 2023, accuses Amazon of using its monopoly power to hinder competitors and restrict price reductions, quality improvement, and innovation in the industry.
