518
Unredacted FTC suit shows 'Project Nessie' price-raising algorithm made Amazon $1.4B
(techcrunch.com)
this post was submitted on 02 Nov 2023
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Amazon owns both the product and the platform. They often are involved in the delivery of the products as well. This gives them quite a bit of control over other companies selling on their platform. They can push whatever product they like to the top of the page. They can copy other products and push the original to the last page of results, and then drop their price until the other company can't compete, and then raise their prices.
They have a lot of control which allows them to be anti competitive. And allegedly they use that
None of that is what this article is talking about. This is just about them raising prices.
Price fixing, whether explicit or implied from conduct, is absolutely something anti-trust regulations were designed to prevent.
Price fixing involves multiple companies working together
Which is exactly what was described in the article.
Mmm no its describing an algorithm of raising prices for their own products
Yes, which is the price-fixing I was talking about. There doesn't need to be an overt agreement to fall under price fixing.
It does need at least an implied agreement of companies intentionally working together to raise prices. A computer program to determine your own prices does not imply working with any other company.
Go ahead and tell the FTC that you know the law better than they do.
let them tell you https://www.ftc.gov/advice-guidance/competition-guidance/guide-antitrust-laws/dealings-competitors/price-fixing
And yet, they are the ones accusing Amazon of price fixing.
Like I said, go tell them that they got it wrong.