Within the wake of the Federal Commerce Fee’s antitrust lawsuit filed in opposition to Amazon on Tuesday, the e-commerce large and its CEO, Jeff Bezos, are already taking a monetary hit.
On Tuesday, the FTC — together with 17 state attorneys normal — filed a lawsuit in opposition to Amazon, alleging that the corporate engaged in anticompetitive practices, unfairly selling its personal merchandise and types, and stifling competitors.
Amazon has denied the allegations and defended its enterprise practices, however that hasn’t stopped the tech large from feeling the pinch of the high-profile lawsuit.
On Tuesday, following the announcement of the FTC’s lawsuit, Amazon inventory fell by 3.28%. As of Thursday afternoon, shares are nonetheless down and stand at about $126 a share, down from $131 on Monday.
As for Bezos, his web price declined by $5 billion on Tuesday, from $155 billion to $150 billion — the place it nonetheless stands as of Thursday, based on the Bloomberg Billionaire Index.
Jeff Bezos’ web price dropped by $5 billion following the FTC lawsuit information. Paul Ellis | Getty Photographs.
Regardless of the drop, Bezo’s web price remains to be within the inexperienced for the 12 months, up $43 million, based on Bloomberg. Nonetheless, with the end result of the lawsuit nonetheless in flux, it stays to be recognized how a lot the tech large and Bezos might lose because of the FTC grievance.
The lawsuit alleges that Amazon has created an unlawful monopoly, and engaged in a “cycle of dominance and hurt,” affecting each customers and sellers. The 172-page grievance alleges that the corporate entices sellers and buyers with the promise of an enormous buyer base and low costs, however then “exploits” them via elevated charges, promoting, achievement service mandates, and “punishment” for promoting elsewhere. The FTC argues that the cycle ends in a poor expertise for customers and artificially excessive costs.
In an official assertion, Amazon has defended its practices and referred to as the lawsuit “misguided,” including that the lawsuit “reveals the Fee’s basic misunderstanding of retail.”