Amazon has asked a federal judge to dismiss the antitrust lawsuit filed against the company by the Federal Trade Commission (FTC). The lawsuit, which was filed in September and joined by 17 states, accuses Amazon of engaging in anti-competitive practices that inflate prices and stifle competition in the online superstore market and online marketplace services. In response, Amazon's attorneys argue that the FTC is attacking policies that actually benefit consumers and competition.

In a 31-page filing submitted to a federal court in Washington state, Amazon pushed back against the allegations made by the FTC. The company claims that the conduct labeled as anti-competitive by the agency consists of common retail practices that actually benefit consumers. The FTC's complaint accuses Amazon of discouraging third-party sellers from offering lower prices on non-Amazon sites by burying listings offered at lower prices and charging increasingly higher fees to merchants, thus driving up prices for products on its own site. The agency also alleges that Amazon keeps sellers dependent on its services, such as logistics and delivery, which allows the company to collect billions in revenue annually.

Amazon argues in its request for dismissal that the company is being faulted for featuring competitive prices and declining to feature uncompetitive ones. The company states that it promptly matches rivals' discounts, features competitively priced deals, and ensures best-in-class delivery for its Prime subscribers. According to Amazon, these practices benefit consumers and represent the essence of competition.

Furthermore, Amazon pushes back against allegations that it conditions Prime eligibility on sellers using its fulfillment service, Fulfillment by Amazon. The FTC's lawsuit, which unveiled an unredacted version in November, claims that Amazon used an algorithm called “Project Nessie” to predict where it could raise prices and have other shopping sites follow suit. The agency alleges that Amazon used this tool to increase prices on certain products and maintained the elevated prices even after other sites followed suit. However, in its filing, Amazon states that it experimented with the automated pricing system Nessie years ago, intending to match the second-lowest competitor instead of the absolute lowest for limited products and duration. The company asserts that it discontinued these experiments in 2019 and now matches its prices to the lowest prices available.

Finally, Amazon disputes the FTC's allegations that it is a monopoly. The company argues that it faces competition from small retailers to large online and brick-and-mortar businesses, including Walmart, Target, Best Buy, and Apple, among others. Amazon claims that the FTC's portrayal of an "online superstore" market is implausible and that consumers consider a variety of factors when making purchasing decisions, such as price, availability, and convenience.

In summary, Amazon has requested the dismissal of the FTC's antitrust lawsuit, arguing that the agency's allegations are based on common retail practices that benefit consumers. The company denies engaging in anti-competitive behavior, stating that it competes with various retailers and provides competitive prices and delivery services to its customers. The outcome of this legal battle will have significant implications for the e-commerce giant and the broader landscape of online retail.