Judge Gives FTC Green Light In Antitrust Lawsuit Against Amazon; Rejects Some State Claims

A federal judge has ruled that the Federal Trade Commission (FTC) can proceed with its antitrust lawsuit against Amazon, but also dismissed some claims made by a number of states involved in the legal fight against the e-commerce giant.

The Associated Press reported that Judge John H. Chun of the U.S. District Court for the Western District of Washington issued the order last week, but it was only unsealed on Monday. The ruling of the court is a setback for Amazon, since it has been trying its best to toss the case out of court and avoid a full-blown trial. The court scheduled the trial for the case for October 2026.

This lawsuit marks one of the most significant legal challenges brought against the e-commerce giant in its nearly 30-year history.

While Judge Chun allowed the federal challenges and several claims against Amazon by many states to proceed, he also rejected the claims made by Maryland, New Jersey, Oklahoma, and Pennsylvania.

The FTC, along with the attorneys general from 18 states, and Puerto Rico, accused Amazon of abusing its position in the marketplace in order to increase prices on and off its platform by using anti-discounting tactics, which they say is a deterrent for other online retailers to offer lower prices. They also alleged that the e-commerce giant overcharges sellers, as well as stifles competition.

The FTC filed the lawsuit against Amazon in September 2023 after carrying out a years-long investigation into the company's business. The complaint alleged that the online retailer is violating state and federal antitrust laws, as well as consumer protection laws.

However, Amazon, in its defense, has maintained that its practices actually "benefit consumers and are the essence of competition."

In a prepared statement, FTC spokesperson Doug Farrar said that they are pleased with the decision of the court and "look forward to moving the case forward."

"The ways Amazon illegally maintains its monopolies and the harm they cause—including suppressed competition and higher prices for shoppers and sellers—will be on full display at trial," Farrar added.

"This case ultimately seeks to pry loose Amazon's monopolistic control and restore competition," he further said, according to The Hill.

Following the ruling, Amazon spokesperson Tim Doyle said in a statement that "the ruling at this early stage requires the court to assume all facts alleged in the complaint are true. They are not." The agency's case "falsely" claims consumers only consider popular sites Walmart.com, Target.com, Amazon, and eBay when shopping for household products.

"Moving forward the FTC will have to prove its claims in court, and we're confident those claims will not hold up when the FTC has to prove them with evidence," Doyle said.

Aside from Amazon, the FTC also filed a lawsuit against Meta Platforms, alleging that the latter is engaged in monopolistic practices.