The Federal Trade Commission (FTC) and 17 state attorneys general filed a lawsuit against Amazon Tuesday accusing the company of illegally maintaining its monopoly power.
As a result of its position in the marketplace, the company has allegedly driven up prices, overcharged sellers and stifles competition, according to the FTC.
Lina Khan, chair of the Federal Trade Commission (FTC), speaks during a House Appropriation Subcommittee hearing in Washington, D.C., US, on Wednesday, May 18, 2022. The hearing is titled "Fiscal Year 2023 Budget Request for the Federal Trade Commiss (Al Drago/Bloomberg via Getty Images / Getty Images)
"Our complaint lays out how Amazon has used a set of punitive and coercive tactics to unlawfully maintain its monopolies," FTC Chair Lina M. Khan said in a statement. "The complaint sets forth detailed allegations noting how Amazon is now exploiting its monopoly power to enrich itself while raising prices and degrading service for the tens of millions of American families who shop on its platform and the hundreds of thousands of businesses that rely on Amazon to reach them.
This is a developing story. Check back for updates.