Amazon Climbed to the Top of the Ladder and Destroyed It

Written by linakhantakesamazon | Published 2023/10/26
Tech Story Tags: ftc-v.-amazon | antitrust | amazon-monopoly | amazon | online-marketplace | amazon-anti-discounting | amazon-ecommerce-monopoly | amazon-antitrust-trial

TLDRmazon's anti-discounting algorithm, particularly its first-party anti-discounting scheme, has been remarkably successful in deterring price competition from other online stores. In instances like 2017 when (redacted) introduced a (redacted), Amazon's algorithm effectively discouraged rivals from competing on price. Amazon's own evaluation revealed that this strategy created a (redacted), prompting (redacted) to shift away from price competition. As a response, (redacted) experienced (redacted) and struggled to maintain competitive pricing. Amazon's algorithmic discipline ultimately curtailed rivals' ability to offer lower prices, stifling price competition in the market.via the TL;DR App

FTC v. Amazon Court Filing, retrieved on Sep 26, 2023, is part of HackerNoon’s Legal PDF Series. You can jump to any part in this filing here. This is part 42 of 80.

b. Amazon’s first-party anti-discounting algorithm has stopped other online stores from competing by offering lower prices

333. Though the different elements of Amazon’s anti-discounting strategy often work in tandem to stifle competition (as discussed in Part VI.A.4, below), Amazon’s first-party anti-discounting algorithm has, on its own, deterred other online stores from competing through lower prices.

334. For example, Amazon’s first-party anti-discounting scheme successfully deterred price competition in 2017 when (redacted) introduced a (redacted)

335. Amazon concluded that its first-party anti-discounting strategy ultimately helped induce (redacted) to stop competing on price through its pickup discount program. In an internal planning and strategy document, Amazon determined that its first-party anti-discounting algorithm created a (redacted)

336. In response to Amazon’s anti-discounting conduct, (redacted) Amazon estimated that (redacted)

337. At one point in 2019, after enduring years of Amazon’s algorithmic disciplining (redacted)

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This court case 2:23-cv-01495 retrieved on October 2, 2023, from ftc.gov is part of the public domain. The court-created documents are works of the federal government, and under copyright law, are automatically placed in the public domain and may be shared without legal restriction.


Written by linakhantakesamazon | The youngest person to ever chair the FTC, Lina Khan rose to prominence from her 2017 book, "Amazon's Antitrust Paradox"
Published by HackerNoon on 2023/10/26