The US Federal Trade Commission (FTC) has accused Amazon of raising prices by more than $1 billion using a secret computer program. Surprisingly, they’ve just revealed more information about this lawsuit they filed against Amazon in September. The latest version of the lawsuit, which was shown in a court in Seattle with less hidden information, shows that this is a worrying situation in the world of e-commerce.
The Hidden Algorithm – Project Nessie
The FTC is concerned about Amazon’s use of a hidden computer program called ‘Project Nessie.’ This secret program was made to find certain products where Amazon thought other online stores would copy its price increases. This discovery has made people wonder if the competition in online shopping is fair.
Deletion of Messages
The FTC claimed that Amazon’s top bosses intentionally erased messages on a messaging app called Signal. This wiped out more than two years of messages, starting from June 2019. What’s important to know is that they did this even after the Trade Commission asked them not to.
Legal Fight Begins
In September, the FTC and 17 states started a legal case against Amazon. They say that Amazon is using its strong position in the market to make prices higher, both on and off its website. At the same time, they accuse Amazon of charging sellers too much and stopping other companies from competing. These things could break federal and state laws against unfair business practices.
Amazon’s Defense
When the lawsuit was filed against them, Amazon responded in September. They said that if the lawsuit succeeds, it could be bad for both customers and businesses. According to Amazon, this legal action might force them to do things that hurt customers and businesses, like raising prices, slowing down Prime shipping, and making Prime membership more expensive and less convenient. David Zapolsky, who is Amazon’s Senior Vice President in charge of Global Public Policy and General Counsel, shared these worries.
In summary, the allegations made by the FTC against Amazon have brought to light issues related to ‘Project Nessie’ and the controversial deletion of messages. This legal battle between the big online retailer and the government regulators is something to keep a close eye on because the outcome could have significant effects on the e-commerce industry and the many people and businesses it serves.
