Why has the United States sued Amazon for "illegal monopoly"? Here's everything you need to know!

The Federal Trade Commission (FTC) of the United States with other regulators has filed a lawsuit against Amazon, one of the biggest online retail giants. As per the lawsuit, the company allegedly made use of coercive and punitive methods to unlawfully maintain and enjoy its monopoly. The suit alleges that Amazon exploits its massive power for its own benefit while deteriorating the service it provides to the customers and increasing the prices.

The lawsuit is a big deal as it is the most high-profile case started by the FTC in the recent against. 
Many link the ties of the case with the appointment of Lina Khan as FTC's chair.
“The lawsuit seeks to hold Amazon to account for these monopolistic practices and restore the lost promise of free and fair competition,” expresses Lina Khan. 
In the year 2017, Lina Khan published an academic article that talked about Amazon escaping the anti-competition scrutiny.

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On the other hand, Amazon stated that it “fundamentally disagrees” with the allegations put forward by FTC, and called such allegations "wrong or misleading". The company further stated that it is going to challenge the lawsuit put by the FTC. 

A few of the allegations put forward by the FTC have earlier been dealt with by the Competition Commission of India (CCI).
Allegations by FTC against Amazon 

The FTC, along with 17 other state attorneys general have filed a lawsuit against the big retail company, Amazon, alleging that the actions of Amazon make it possible for the company to limit its competitors and sellers from lowering the prices. It allegations also say that Amazon has degraded the quality for shoppers, has stifled innovation, limited rivals from competing fairly, and overcharged the sellers. 

The complaint also alleges that Amazon violates the law because it gets indulged in "exclusionary conduct", that stops the new competitors from making a place in the market and present competitors from expanding.
The allegations state that the company's anticompetitive conduct takes place in two markets, viz., its online superstore market and the market for online marketplace services. The first one is for the shoppers while the second one is for the sellers. 

The tactics are that of anti-discounting measures that stop online retailers from offering prices lower than Amazon. This keeps the prices of products higher across the internet. Moreover, the allegations also say that the tactics include conditioning the ability of the sellers to obtain "Prime" eligibility for their products with the costly Fulfillment service. This has made it quite expensive for the sellers on Amazon, so much so that it makes it difficult for them to offer their products on other platforms as well. 

The FTC and the state partners seek a permanent injunction in the federal court prohibiting Amazon from indulging in “unlawful conduct and pry loose Amazon’s monopolistic control to restore competition,” as stated by a statement.

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