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Amazon wins partial dismissal of US antitrust lawsuit
Oct 2, 2024 9:55 PM

Sept 30 (Reuters) - Amazon.com Inc ( AMZN ) won partial

dismissal of a U.S. Federal Trade Commission lawsuit accusing it

of maintaining illegal monopolies, though the details of the

ruling by a federal court in Seattle on Monday were not

immediately clear.

The FTC has accused the online retailer of using

anti-competitive tactics to maintain dominance among online

superstores and marketplaces. Amazon ( AMZN ) asked U.S. District Judge

John Chun to dismiss the case in December, saying the FTC had

raised no evidence of harm to consumers.

Last year, the FTC alleged Amazon.com ( AMZN ), which has 1 billion

items in its online superstore, was using an algorithm that

pushed up prices U.S. households paid by more than $1 billion.

Amazon ( AMZN ) has said in court papers it stopped using the program in

2019.

Chun issued a sealed ruling, partially granting Amazon's ( AMZN )

motion. The FTC will be allowed to continue to pursue any claims

the judge did not permanently dismiss, court records showed.

Chun also ruled the case will be tried in two parts,

rejecting Amazon's ( AMZN ) bid to have the FTC present evidence of the

alleged violations and its proposed remedies in the same trial.

A spokesperson for the FTC declined to comment on the order.

An Amazon ( AMZN ) spokesperson did not immediately respond to a request

for comment.

In its complaint last year, the FTC claimed Amazon ( AMZN )

hampers competition, in part by pushing sellers to use its

advertising and fulfillment services.

Amazon ( AMZN ) argued in its motion to dismiss the case that its

price-matching and Prime shipping services benefit consumers and

are examples of its efforts to compete with thousands of online

and brick-and-mortar retailers.

The case is one of five blockbuster lawsuits where antitrust

regulators at the FTC and U.S. Department of Justice are going

after Big Tech.

Facebook owner Meta Platforms ( META ) and Apple ( AAPL )

are both being sued, and Alphabet's Google is facing

two lawsuits, including one where a judge recently found it

unlawfully thwarted competition among online search engines.

The Amazon.com ( AMZN ) case is an important one for FTC Chair

Lina Khan, who has long pushed to challenge the power of the

huge online retailer. In 2017, Khan wrote an influential

academic article arguing the company's structure and practices

posed anticompetitive concerns and had escaped antitrust

scrutiny.

(Reporting by Jody Godoy in New York; Editing by Tom Hogue and

sonali Paul)

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