Since its inception in the 90s, Amazon.com, Inc. has grown into one of the largest and most successful companies in the world. While the legality of the corporation’s massive influence has long been debated, it was officially called into question on Sept. 26, when the Federal Trade Commission (FTC), in conjunction with 17 state attorney generals, filed a lawsuit against the tech giant. They alleged that it had been wielding monopolistic control over multiple markets. 

The lawsuit asserts that Amazon’s conduct stifles competition by preventing rival sellers from offering lower prices, degrading product quality, overcharging sellers and discouraging innovation.

“Amazon’s illegal conduct has stifled competition across a huge swath of the online economy,” John Newman, Deputy Director of the FTC’s Bureau of Competition, said. “Seldom in the history of U.S. antitrust law has one case had the potential to do so much good for so many people.”

This legal action highlights the growing scrutiny faced by tech giants and their influence on the broader economy, marking a critical juncture in the ongoing debate over antitrust regulation and the concentration of power in the tech industry. 

“If the FTC gets its way, the result would be fewer products to choose from, higher prices, slower deliveries for consumers and reduced options for small businesses — the opposite of what antitrust law is designed to do,” David Zapolosky, Amazon general counsel, told the New York Times. 

Nick Vose, who recently began his eighth year as an Economics and AP Comparative Government teacher, believes that Amazon has the tools to become a monopoly, especially because of its control of the shipping market.

“Amazon is continuously increasing their reach into online shipping, connecting other companies as customers,” Vose said.”They almost have to go through Amazon now since they offer such cheap prices for shipping… I could see them eventually become a monopoly.”

Despite this, Vose is skeptical of the lawsuit’s viability.

“I don’t think they’re going to be successful with this lawsuit because they’re having a hard time defining clearly what exact market Amazon has a monopoly over… There are countless other websites in which you can buy stuff and get it shipped to you. I think it’s going to be difficult for the government to clearly show that [Amazon] has a monopoly over the entire online selling market.”

If Amazon loses the lawsuit, however, there will be major changes in the world of online retail.

“If [the lawsuit] is successful, It’s gonna set a new precedent on government regulation of online markets… it will definitely usher in the new era of government regulation of online shopping, for better or for worse.”