Amazon is facing antitrust pressure again primarily because of concerns about its business practices that may harm competition and consumers. One major issue involves allegations that Amazon uses manipulative tactics to keep customers enrolled in its Prime membership program. The Federal Trade Commission (FTC) sued Amazon, accusing the company of employing “dark patterns”—design tricks that make it difficult for users to cancel their Prime subscriptions. For example, when a customer tries to end their Prime membership, instead of a simple cancellation, they are taken through a complicated process involving multiple pages, clicks, and confusing options. This tactic allegedly traps customers into continuing their subscriptions against their will. The FTC also claimed that Amazon executives knowingly resisted making it easier to cancel Prime, which led to a $2.5 billion settlement including a $1 billion civil penalty and $1.5 billion in refunds to affected customers[1].
Another significant source of antitrust scrutiny is Amazon’s control over pricing on its platform. Amazon enforces a “fair pricing” policy that monitors sellers’ prices not only on Amazon but also on other websites. If a seller offers a lower price elsewhere, Amazon can penalize them by removing their product from the “Buy Box” (the prominent one-click purchase button), suspending shipping options, or even terminating their selling privileges. This policy effectively gives Amazon substantial control over retail pricing, which some argue amounts to price-fixing. A class-action lawsuit alleges that this practice artificially inflates prices on Amazon’s marketplace and violates federal antitrust laws by restricting sellers’ ability to compete freely on price[2].
These issues highlight broader concerns about Amazon’s market power. The company dominates online retail and exerts significant influence over sellers and consumers. Critics argue that Amazon’s practices can stifle competition by making it harder for sellers to offer better prices elsewhere and by using design strategies that lock in customers. Regulators and plaintiffs contend that such behavior harms consumer choice and leads to higher prices.
The antitrust pressure on Amazon reflects ongoing debates about how to regulate large technology companies that operate platforms with vast market reach. Amazon’s dual role as both a marketplace operator and a competitor to sellers on its platform raises complex questions about fairness and competition. The recent legal actions and investigations show that regulators are increasingly willing to challenge Amazon’s business model to protect consumers and promote competitive markets.