A’ZON CALL TO ARMS
Prep for FTC war
The Federal Trade Commission is reportedly preparing to file a mammoth antitrust lawsuit against Amazon that will target the e-commerce giant’s core online business — and the firm has hired around a dozen former FTC officials ahead of the legal war, sources close to the situation said.
The agency, headed by longtime Amazon critic Lina Khan (inset), is set to accuse the company of improperly wielding its dominance to reward online merchants that use its logistics services while penalizing those who do not, Bloomberg News reported.
Third-party merchants on Amazon pay the company commissions on each sale as well as for services including warehousing, shipping and advertising.
While the fees are optional, most merchants end up paying them because the FTC alleges that Amazon’s algorithm places them at a competitive disadvantage if they don’t, according to Bloomberg News, which cited three people familiar with the matter.
Amazon and the FTC declined to comment.
The FTC’s reported allegation dovetails with a European antitrust case that accused Amazon of breaching competition rules by favoring merchants that used its logistics and delivery system over other sellers.
Amazon and the European Commission reached a settlement in the matter.
The court papers are expected to be filed before the FTC undergoes significant personnel changes in August, according to Bloomberg.
Khan is expected to seek a restructuring of Amazon’s business model — a development that will likely prompt the firm to appeal, Bloomberg reports.
Amazon has been getting ready for the bare-knuckle brawl by bulking up its legal team with ex-FTC officials, sources told The Post.
Those joining the fray for Team Amazon include former FTC lawyers Brian Huseman, who manages Amazon’s policy shop, Amy Posner as senior corporate counsel and Sean Pugh, a senior manager in public policy, the sources said.
“If you’re preparing for war, hiring people who used to work for the opposing army is a good way to gather intelligence,” said Jeff Hauser of the Revolving Door Project.