FTC readies lawsuit that could break up Amazon

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FTC readies lawsuit that could break up Amazon
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A case would be a high-water mark for FTC Chair Lina Khan who gained prominence criticizing the company’s dominance.

The complaint is likely to focus on challenges to Amazon Prime, which the FTC says block lower prices on competing websites. | Steven Senne/AP PhotoThe Federal Trade Commission is finalizing its long-awaited antitrust lawsuit against Amazon, four people with knowledge of the matter told POLITICO, a move that could ultimately break up parts of the company.

The complaint is likely to focus on challenges to Amazon Prime, Amazon rules that the FTC says block lower prices on competing websites, and policies the FTC believes force merchants to use Amazon’s logistics and advertising services, according to some of the people. Amazon Prime, which began as a subscription for unlimited free shipping, is also expected to be a target, some of the people said. Prime has evolved to include books, music and video streaming. The FTC is concerned that the bundle of services is used to illegally cement the company’s market power.

The Justice Department meanwhile has two separate lawsuits against Google over its search and advertising businesses, the former of which is scheduled for a two-month trial in September. It is preparing an antitrust case against Apple, and has pending investigations into Ticketmaster and Visa, among others.

The exact allegations will determine who joins. Some states — and some within the agency — have pushed back against making Prime, a popular consumer service, a focal point of the case, some of the people said.

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