April 9 (Reuters) - Amazon.com ( AMZN ) has asked a U.S. court to
dismiss a lawsuit claiming its cloud-computing unit AWS stamped
out a startup that worked with "Fortnite" maker Epic Games and
other customers to provide fast internet connections.
Amazon ( AMZN ) in a filing on Monday in Seattle federal court said
Subspace omega LLC's lawsuit should be dismissed for a number of
reasons, including its failure to show AWS had any requirement
to provide free network connections to it in locations around
the globe.
Wyoming-based web traffic optimization company Subspace,
which shuttered in 2022, had "peered" with Amazon ( AMZN ) on its
networks in an arrangement designed to benefit both companies,
its lawsuit said. Subspace accused Amazon ( AMZN ) of violating antitrust
law by ending the arrangement in a "calculated" move to drive
the company out of business. It is seeking $417 million in
damages.
Subspace's attorneys in a statement on Tuesday said Amazon ( AMZN )
"has a vested interest in forcing innovators out of business and
limiting the free market to create an illegal moat around AWS's
monopoly profits."
The statement said Amazon's ( AMZN ) "abuse of its market position in
this case is precisely the behavior that the law prohibits."
Amazon ( AMZN ) did not immediately respond to a request for comment
on Tuesday.
Subspace's lawsuit focuses partly on a claim that Amazon ( AMZN ) has
"refused to deal" with it, abusing its market power in the cloud
networking arena.
Amazon ( AMZN ) took over Subspace's "network optimization" services
for Epic Games after ending the companies' peering agreement.
Epic's multiplayer shooter Fortnite is among the most popular
online games. Subspace said it could no longer perform under its
contract for Epic, which it said was its largest client.
Amazon ( AMZN ) in Monday's filing said "companies negotiate with one
another every day," and that "if not receiving the terms you
want in a business deal were an antitrust violation, courts
would be flooded with contrived antitrust claims."
Amazon ( AMZN ) is facing other antitrust lawsuits from consumers and
government agencies, including the Federal Trade Commission.
The federal agency has accused Amazon ( AMZN ) of unlawfully trying
to bar sellers from offering better deals at other sites. Amazon ( AMZN )
has denied wrongdoing, and its bid to dismiss the lawsuit is
pending.
The case is Subspace omega LLC v. Amazon Web Services Inc,
U.S. District Court for the Western District of Washington, No.
2:23-cv-01772-TL.
For Subspace: Brett Vinson of Reynolds Burton and Vinson;
and Tony Lee and Thomas Urban II of Fletcher, Heald & Hildreth
For Amazon ( AMZN ): Kenneth Reinker of Cleary Gottlieb Steen &
Hamilton; and Shylah Alfonso of Perkins Coie
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