In the months since the Federal Trade Commission sued Amazon over allegations of anti-competitive and monopolistic behavior, the two parties have debated the schedule, the scope and the rationale of the case itself.

Amazon asked a federal judge in Seattle to dismiss the case in December, arguing the business practices in question have lowered prices for consumers and are common across the retail industry. Amazon described the FTC's lawsuit as an "attack" and an "effort to hobble one of America's most consumer-focused businesses."

The FTC responded Tuesday, asking U.S. District Judge John Chun to allow the case to proceed. Taken together, Amazon's conduct creates a self-reinforcing monopoly that edges out competitors and raises prices across the Internet, the FTC argued.

The case against Amazon is "a straightforward story of illegal conduct," attorneys for the agency wrote Tuesday. "It lays out how Amazon is a monopolist ... enriching itself while harming its customers."

Acknowledging the immense impact the lawsuit could have if the FTC prevails, attorneys for Amazon wrote that the agency is seeking "structural relief that could fundamentally alter Amazon's business."

It's still not entirely clear what changes the FTC seeks, and it may take years for the case to resolve.

While Amazon says the FTC's proposed schedule doesn't provide enough time for the "excessive" amount of information the agency has requested it provide, the FTC says the case must "move forward as quickly as possible," attorneys wrote in a joint status report filed in December. "Every day that passes is another day of harm inflicted on shoppers, sellers and competition."

The two parties are also deadlocked over how many company insiders Amazon must make available for deposition. The company has asked to limit the FTC to deposing only 10 Amazon witnesses, while the FTC is seeking to talk to over 100 people.

A 'price floor'

After a years-long investigation, the FTC sued Amazon in September, alleging the company used anticompetitive practices to keep its competitors from getting a foothold in the digital retail space.

Amazon accounted for nearly 38% of the U.S. e-commerce market as of June 2022, making it the country's leading online retailer, according to Insider Intelligence. Walmart followed behind, with 6.3% market share, while Apple came in third, with 3.9%.

In the sweeping complaint, the FTC accused Amazon of replacing organic search results with paid advertisements, roping sellers into paying steep fees to use Amazon's advertising and fulfillment services, and penalizing vendors if they offered lower prices elsewhere on the Internet.

"Each element of Amazon's monopolistic strategy works to keep its rivals and potential rivals from growing, gaining momentum and achieving the scale necessary to meaningfully compete against Amazon," attorneys for the FTC wrote in the complaint. Together, those elements amplify one another, the FTC continued, "further widening the gulf between Amazon and everyone else."

Attorneys general from 17 states signed on to the lawsuit at the time it was filed. Washington was not among the states that joined.

When the lawsuit was originally filed, Washington state Attorney General Bob Ferguson said his office was reviewing the complaint and "keeping all options open, including future litigation."

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