Nevada joins FTC, 16 other states in suing Amazon

CARSON CITY, Nev. (KOLO) - The State of Nevada is joining the Federal Trade Commission and 16 other states in suing retail giant Amazon.

The suit accuses Amazon of being a monopoly that has unlawfully maintained that power through unfair and anticompetitive practices.

“Amazon is a mammoth corporation and like most of my constituents, I am also an Amazon customer. There is nothing inherently wrong with being a large company, but it is wrong to use your size and dominance to quash both current and potential competitors,” said Nevada Attorney General Aaron Ford. “Competition is vital to our economy and a key element in the production of quality goods and services, which Nevada consumers expect and deserve. However, Amazon’s conduct has negatively impacted numerous businesses and their consumers, thereby thwarting its competition.”

State and federal enforcers say Amazon’s actions allow it to stop rivals and sellers from lowering prices, degrade quality, overcharge sellers, stifle innovation, and prevent its rivals from fair competition.

FTC Chair Lina M. Khan said of the suit that the ”complaint lays out how Amazon has used a set of punitive and coercive tactics to unlawfully maintain its monopolies. The complaint sets forth detailed allegations noting how Amazon is now exploiting its monopoly power to enrich itself while raising prices and degrading service for the tens of millions of American families who shop on its platform and the hundreds of thousands of businesses that rely on Amazon to reach them.”

The states and FTC further allege Amazon engages in anti-discounting measures, and replaces organic searches with paid ads, among other practices.

The suit is asking for a permanent injunction in federal court stopping Amazon from the kind of conduct the suit accuses it of.