Federal Commerce Fee (FTC) Chair Lina Khan testifies earlier than a Home Judiciary Committee listening to on “Oversight of the Federal Commerce Fee,” on Capitol Hill in Washington, July 13, 2023.
Kevin Wurm | Reuters
In Lina Khan’s two years helming the Federal Commerce Fee, her title has been most related to one firm: Amazon.
Up to now, that is largely been due to her viral Yale Regulation Journal article from 2017, titled “Amazon’s Antitrust Paradox.” The paper made waves within the antitrust neighborhood as a result of it argued that the fashionable utility of antitrust legal guidelines has did not seize the methods tech giants like Amazon are capable of dominate in a digital world.
The article made Khan’s title ubiquitous in antitrust circles and helped launch her on a path to changing into the youngest-ever FTC chair. As soon as sworn into the function, Amazon pressed for Khan to be recused from its antitrust investigations, pointing to her previous criticism of its enterprise. An identical try by Meta was rejected by a decide in a separate case.
Whereas the FTC has taken swings at main tech firms underneath Khan — like via its problem of Meta’s proposed acquisition of Inside Limitless, a digital actuality health app maker, and a shopper safety go well with in opposition to Amazon’s Prime service — those that observe the company have lengthy anticipated a go well with difficult Amazon’s alleged monopoly energy.
That lawsuit is now anticipated to return as quickly as this month, The Wall Road Journal and Bloomberg reported this week.
A problem to Amazon’s alleged monopoly may finally lead to a breakup of the more-than-trillion-dollar enterprise, ought to the FTC file the lawsuit and win in courtroom.
On August 15, the FTC held a so-called “final rites” assembly with Amazon, a supply conversant in the matter, who was not licensed to talk publicly on the non-public discussions, confirmed to CNBC. Such conferences are sometimes a final step earlier than commissioners vote on whether or not to file a lawsuit, giving an organization the prospect to voice its facet.
On this case, nonetheless, a settlement and acceptable cures weren’t mentioned, the supply mentioned, confirming reporting by the Journal and Bloomberg.
The go well with will seemingly goal key parts of Amazon’s retail market enterprise, together with Success by Amazon, its logistics program, in addition to pricing by third-party sellers on its web site, in line with the Journal, citing unnamed sources. Even earlier than Khan joined the company, FTC workers had begun interviewing Amazon sellers to find out about whether or not it used its dominance to harm competitors, Bloomberg reported in 2019.
The FTC declined to touch upon the reviews. Amazon earlier declined to touch upon the Journal story.
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