Amazon asks U.S. federal judge to dismiss the FTC’s antitrust lawsuit against the company

Attorneys for Amazon on Friday requested a federal choose to dismiss the Federal Trade Commission’s antitrust lawsuit in opposition to the e-commerce large, arguing the company is attacking insurance policies that profit customers and competitors.

Amazon’s response got here greater than two months after the FTC — joined by 17 states — filed the historic criticism in opposition to the Seattle-based firm, alleging it inflates costs and stifles competitors in what the company calls the “online superstore market” and within the area of “online marketplace services.”

In its 31-page submitting made in a federal courtroom in Washington state, Amazon pushed again, arguing the conduct that the FTC has labelled anti-competitive consists of frequent retail practices that profit customers.

The FTC’s criticism, filed in September, accused the corporate of participating in anti-competitive practices via measures that deter third-party sellers from providing decrease costs for merchandise on non-Amazon websites.

The company mentioned Amazon buried listings provided at decrease costs on different websites. Simultaneously, it famous Amazon was charging retailers more and more larger charges and driving up costs for merchandise by itself web site. It additionally alleged Amazon saved sellers depending on companies, similar to its logistics and supply service, which have allowed it to gather billions in income yearly.

In its request for a dismissal, Amazon mentioned the lawsuit faults Amazon for that includes aggressive costs and declining to characteristic uncompetitive ones.

“Amazon promptly matches rivals’ discounts, features competitively priced deals rather than overpriced ones, and ensures best-in-class delivery for its Prime subscribers,” the corporate wrote within the submitting. “Those practices — the targets of this antitrust Complaint– benefit consumers and are the essence of competition.”

Amazon additionally pushed again in opposition to allegations it situations Prime eligibility on merchandise — which denotes quick delivery — on whether or not sellers use its success service, Fulfillment by Amazon.

An unredacted model of the FTC’s lawsuit unveiled in November alleged Amazon used a software — codenamed “Project Nessie” — to foretell the place it may elevate costs and produce other procuring websites observe swimsuit. The company mentioned Amazon used the algorithm to lift costs on some merchandise and saved the brand new elevated costs in place after different websites adopted its lead.

In its submitting Friday, Amazon mentioned it experimented with the “automated pricing system” Nessie years in the past. It posited Nessie was meant to “match to the second-lowest competitor instead of the absolute lowest” for “limited products and duration.” The firm additionally mentioned it stopped the experiments in 2019, and matches its costs to the bottom costs at present.

Amazon additionally pushed again on the company’s allegations that the corporate is a monopoly. It mentioned in its submitting that it faces competitors from small retailers to massive on-line and brick-and-mortar companies like Walmart, Target, Best Buy and Apple, amongst others.