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Amazon Sued By FTC, 17 States Alleging Monopoly Practices 9/26/23

TechCheck

CNBC

Disruptors, Cnbc, Investing, Tech, Management, Business, Technology, Faang

4.566 Ratings

🗓️ 26 September 2023

⏱️ 7 minutes

🧾️ Download transcript

Summary

The FTC and 17 states filed a antitrust suit today alleging Amazon inflates online prices and overcharges sellers. The agency and FTC chair Lina Khan’s credibility are at stake in this massive case. Khan badly needs a win -- she made her name in law school by targeting the tech giant, but during her tenure, she’s only allowed the Prime ecosystem to get stronger and more entrenched.

Transcript

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0:00.0

The FTC expected to file that years-long investigation into Amazon's online marketplace as soon as today, according to reports,

0:08.0

a culmination of Charleina Khan's long history with the tech giant.

0:11.0

Deirdre Bosa is digging into that for today's Tech Jack.

0:13.6

Morning day.

0:15.0

Good morning.

0:15.6

Lena Khan, she badly needs a win.

0:17.6

And as we await that FTC's antitrust lawsuit against Amazon,

0:21.3

the agency and her own credibility are at stake.

0:24.8

Lena Con, she made her name in law school for a paper titled Amazon's Antitrust Paradox,

0:29.4

where she argued that the existing antitrust framework didn't properly account for the rise of

0:33.7

e-commerce and platform-based models. She came into the position determined to

0:37.9

hold big tech accountable and yet when we look back at the deals Amazon has

0:42.3

done during her tenure at the head of the Federal Trade Commission,

0:45.5

this is not a small list and taken together it has made the prime ecosystem only stronger and only more entrenched, exactly what she's been trying to fight.

0:54.9

Let's go through them.

0:55.7

There was MGM an 8.5 billion dollar acquisition early on, which she didn't challenge,

1:00.4

then a $1.7 billion bid for I-RobRobot which the FTC is taking a closer look at but hasn't

1:06.1

announced an official investigation. There's one medical and nearly four billion dollar

1:10.9

deal that gave Amazon a foothold in health care that closed without

1:14.6

challenge by Khan and the agency. In fact three of Amazon's five largest

1:19.2

acquisitions they have been done while Khan has been in charge and then there's all the investments in generative AI on the right side of your screen.

1:26.2

Hugging face, there was the up to $4 billion for a minority stake in anthropic.

...

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