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Amazon seeks to dismiss antitrust suit filed by FTC, NJ and 16 other states

Kimberly Redmond//December 15, 2023//

Since launching in November 2022, Amazon’s location in Woodland Park has become one of the top same-day delivery facilities in the U.S., processing about 50,000 customer orders daily.

Since launching in November 2022, Amazon’s location in Woodland Park has become one of the top same-day delivery facilities in the U.S., processing about 50,000 customer orders daily. - AMAZON

Since launching in November 2022, Amazon’s location in Woodland Park has become one of the top same-day delivery facilities in the U.S., processing about 50,000 customer orders daily.

Since launching in November 2022, Amazon’s location in Woodland Park has become one of the top same-day delivery facilities in the U.S., processing about 50,000 customer orders daily. - AMAZON

Amazon seeks to dismiss antitrust suit filed by FTC, NJ and 16 other states

Kimberly Redmond//December 15, 2023//

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Amazon.com Inc. is calling on a federal court to dismiss a sweeping antitrust lawsuit brought by the Federal Trade Commission and a bipartisan coalition of 17 states accusing the online retailer of maintaining an illegal monopoly.

Filed Dec. 8 in  Western Washington District Court in Seattle, argued that what the suit deemed as anti-competitive behaviors are “common retail practices that presumptively benefit consumers” and “are the essence of competition.”

The motion came more than two months after the FTC and a bipartisan group of 17 state attorneys general – including Matthew Platkin of New Jersey – sued Amazon, claiming the Seattle-based mega-retailer suffocates competitors and raises costs for both sellers and consumers. They also accused Amazon of conditioning a product’s eligibility for Prime, making it more costly for sellers to offer goods on other platforms.

In its motion to dismiss the lawsuit in its entirety, Amazon said the plaintiffs have failed to show the company engaged in “anticompetitive conduct that has an anticompetitive effect” and insisted that the evidence will show the company’s practices are lawful and work to keep prices low for consumers.

“Amazon promptly matches rivals’ discounts, features competitively priced deals rather than overpriced ones, and ensures best-in-class delivery for its Prime subscribers,” the company wrote in the filing. “Those practices — the targets of this Complaint— benefit consumers and are the essence of competition.”

The company also took exception to allegations it conditions Prime eligibility on products – which guarantees faster delivery – on whether sellers use its fulfillment service, Fulfillment by Amazon. In pushing back on claims of a monopoly, Amazon said it faces competition from small businesses, as well as larger online sellers and brick-and-mortar retailers, such as Target, Walmart and Best Buy.

New Jersey, along with the FTC and state plaintiffs, are asking the court for a permanent injunction against Amazon to keep the company from “engaging in its unlawful conduct and pry loose Amazon’s monopolistic control to restore competition.”

Connecticut, Delaware, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Hampshire, New Mexico, Nevada, New York, Oklahoma, Oregon, Pennsylvania, Rhode Island and Wisconsin also joined the FTC’s lawsuit.

New Jersey Attorney General Matthew Platkin
Platkin

At the time of the antitrust lawsuit’s filing, Platkin said, “Amazon harms New Jersey residents and businesses by stifling competition and limiting consumer choice.”

“Our complaint seeks to promote fair competition, encourage innovation, and force Amazon to relinquish its monopoly. It’s time to break free from their digital stranglehold and create a level playing field,” Platkin stated.