Amazon Fires Back: Seeks Dismissal of $1 Billion Antitrust Lawsuit

Amazon Fires Back: In a bid to quash the U.S. government’s antitrust lawsuit, filed a motion on Friday seeking the dismissal of the case. The lawsuit, brought forth by the Federal Trade Commission (FTC) in September, alleges that Amazon engaged in illegal strategies, including utilizing an algorithm named Project Nessie, resulting in over $1 billion in increased prices.

In its motion, Amazon argued that the FTC has misconstrued “common retail practices” as anticompetitive conduct and has failed to substantiate harm to consumers. The e-commerce giant contended that it promptly matches rivals’ discounts, features competitively priced deals, and ensures top-notch delivery services for its Prime subscribers. Amazon is urging the court to dismiss the lawsuit in its entirety.

The FTC’s case asserts that Amazon employed Project Nessie, a “secret algorithm,” to identify products for price hikes without losing customers. According to the FTC, this strategy extracted over $1 billion from consumers. Amazon, in response, clarified that Nessie was discontinued in 2019 and emphasized its commitment to price matching with other companies.

Amazon Fires Back

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Furthermore, the FTC criticized Amazon’s requirement for sellers under its Prime feature to use the company’s logistics and delivery services. The regulator argued that this practice limited sellers’ choices and increased costs. Amazon countered that using its fulfillment services was voluntary, even for Prime products.

The filing also highlighted Amazon’s competition with other online superstores, including Walmart and Target, as well as various specialized retailers. The company dismissed the notion of an “online superstore” market, stating that consumers consider factors beyond a single platform when making purchasing decisions.

As the legal battle unfolds, Amazon’s defense underscores its commitment to fair competition and adherence to common retail practices. The outcome will be closely watched in the broader context of ongoing antitrust scrutiny on major tech companies.

Our Reader’s Queries

Is Amazon coming out with a new Fire tablet in 2023?

Experience ultimate relaxation with the all-new Amazon Fire HD 10 tablet. Boasting a stunning 10.1″ Full HD screen and powered by an octa-core processor and 3 GB RAM, this latest model (2023 release) is designed to deliver seamless performance. With 32 GB of storage, you can store all your favorite content in one place. The sleek black design adds a touch of sophistication to your device. Get ready to unwind and enjoy your favorite movies, TV shows, and books on the Amazon Fire HD 10 tablet.

Will Amazon Fire employees who don’t come into the office?

According to reports, Amazon’s return-to-office policy allows global managers to terminate employees who do not comply with the company’s mandate for three-day-per-week office-based work. This guidance gives managers the authority to enforce the policy and take action against those who do not follow it. It is important for employees to understand and adhere to the policy to avoid any potential consequences.

Are Amazon Fire tablets any good?

For those seeking a tablet primarily for media consumption, Amazon Fire tablets are a top contender. Antonette Asedillo, in charge of CR’s tablet and computer testing, attests to their exceptional value. With these tablets, you can enjoy watching videos, reading books, and consuming other forms of media to your heart’s content.

How do I revive a dead Amazon Fire tablet?

To reboot your device, press and hold the power button for 40 seconds. If your device is not charging, try using a different charging cable. You can also try charging your device by plugging it into a wall outlet. If your device still won’t turn on, unplug the charging cable and plug it back into the device before attempting to turn it on again.

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