
A US federal judge has set an October 2026 trial date for the Federal Trade Commission's (FTC) antitrust lawsuit against Amazon.
As per a Reuters report, the lawsuit, filed on September 26 and joined by 17 state attorneys general, accuses the e-commerce giant of operating an illegal monopoly, particularly by impeding sellers from offering lower prices on other platforms.
The trial date was determined by US District Judge John Chun in response to the long-awaited legal action following a four-year investigation.
The FTC's lawsuit against Amazon aims to address what it perceives as unlawful conduct by the company. The agency is seeking a permanent injunction to halt practices it considers anti-competitive.
In addition, the FTC has raised the possibility of remedies that could include divesting parts of Amazon's business.
However, both Amazon and the FTC declined to provide comments regarding the trial date or the allegations outlined in the lawsuit.
Amazon, in its defence against the FTC's claims, argues that the agency has misconstrued standard retail practices as anticompetitive behaviour. The company asserts that the FTC has failed to demonstrate any harm to consumers resulting from its business operations.
Last December, Amazon moved to dismiss the lawsuit, emphasising the disparity between what the FTC characterises as antitrust violations and the actual impact on consumers.
Responding to Amazon's motion to dismiss, the FTC argued that the government has clearly outlined Amazon's status as a monopolist and its methods for maintaining dominance in the market.
The FTC alleges that Amazon has utilised various illegal strategies to increase profits, including the implementation of an algorithm known as "Project Nessie." This algorithm allegedly led to over $1 billion in increased prices for US households.
Amazon, with its vast online marketplace offering over a billion items, reportedly used Project Nessie to identify products for price increases, directly impacting consumers' wallets.
However Amazon, refuses the FTC's claims regarding the pricing tool, stating that it has ceased using Project Nessie several years ago. The company maintains that the algorithm was primarily employed to prevent price-matching scenarios that could result in unsustainable price reductions.
Amazon asserts that the FTC's portrayal of Project Nessie is misleading and does not accurately reflect its intentions or practices. The ongoing legal battle between Amazon and the FTC underscores the complexity of antitrust regulations in the digital age and their implications for e-commerce giants.
(With inputs from Reuters)