The US Federal Trade Commission and 17 states have sued Amazon, alleging the online retailer illegally uses monopoly power to overcharge consumers, hobble competitors and exploit sellers on its marketplace.
The landmark lawsuit, filed on Tuesday, accused the $1.3tn ecommerce giant of increasing fees to sellers on its marketplace so that it extracts nearly half of every dollar in revenue made by a typical seller using its logistics service to deliver products.
The FTC also alleged that Amazon punishes sellers that discount heavily by making them “effectively invisible” in its search results and forcing vendors to use its “costly” logistics network.