Enlarge (credit: Bloomberg / Contributor | Bloomberg )

Last week, the Federal Trade Commission sued Amazon , alleging that the online retailer was illegally maintaining a monopoly. Much of the FTC's complaint against Amazon was redacted, but The Wall Street Journal yesterday revealed key details obscured in the complaint regarding a secret algorithm. The FTC alleged that Amazon once used the algorithm to raise prices across the most popular online shopping destinations.

People familiar with the FTC's allegations in the complaint told the Journal that it all started when Amazon developed an algorithm code-named "Project Nessie." It allegedly works by manipulating rivals' weaker pricing algorithms and locking competitors into higher prices. The controversial algorithm was allegedly used for years and helped Amazon to "improve its profits on items across shopping categories" and "led competitors to raise their prices and charge customers more," the WSJ reported.

The FTC's complaint said:

Enlarge / FTC Chair Lina Khan speaks during the Spring Enforcers Summit at the Department of Justice in Washington, DC, on Monday, March 27, 2023. (credit: Getty Images | Bloomberg)

The Federal Trade Commission and 17 state attorneys general today sued Amazon, claiming the online retail giant illegally maintains monopoly power.

"Our complaint lays out how Amazon has used a set of punitive and coercive tactics to unlawfully maintain its monopolies," FTC Chair Lina Khan said. "The complaint sets forth detailed allegations noting how Amazon is now exploiting its monopoly power to enrich itself while raising prices and degrading service for the tens of millions of American families who shop on its platform and the hundreds of thousands of businesses that rely on Amazon to reach them. Today's lawsuit seeks to hold Amazon to account for these monopolistic practices and restore the lost promise of free and fair competition."

The FTC announced that it filed the lawsuit in US District Court for the Western District of Washington. The FTC press release said it is "seeking a permanent injunction in federal court that would prohibit Amazon from engaging in its unlawful conduct and pry loose Amazon's monopolistic control to restore competition."

Enlarge (credit: Getty Images | Sasirin Pamai)

The Federal Trade Commission's chief administrative law judge ruled that Intuit violated US law with deceptive advertising and should be forced to stop promoting TurboTax as "free" unless all conditions imposed on the free offer are immediately and conspicuously displayed to consumers.

The initial decision by Administrative Law Judge D. Michael Chappell was released today and is subject to an automatic review by the full commission. The FTC commissioners will likely rule against Intuit, which issued a statement indicating that it will take the matter to federal court. The order would be in effect for 20 years if it survives appeal.

The response from Intuit noted that the administrative law judge is "an employee of the FTC" and "ruled in favor of the FTC in the agency's own lawsuit." The FTC filed an administrative complaint against Intuit in March 2022.

Enlarge (credit: SOPA Images / Contributor | LightRocket )

Four nonprofit groups seeking to protect kids' privacy online asked the Federal Trade Commission (FTC) to investigate YouTube today, after back-to-back reports allegedly showed that YouTube is still targeting personalized ads on videos "made for kids."

Now it has become urgent that the FTC probe YouTube's data and advertising practices, the groups' letter said, and potentially intervene. Otherwise, it's possible that YouTube could continue to allegedly harvest data on millions of kids, seemingly in violation of the Children's Online Privacy Protection Act (COPPA) and the FTC Act.

The first report alleging YouTube's noncompliance with federal laws came last week from Adalytics and was quickly corroborated by research from Fairplay, one of the groups behind the FTC letter, The New York Times reported . Both groups ran ad campaigns to test if YouTube was really blocking all personalized ads from appearing in children's channels, as YouTube said it was. Both found that "Google and YouTube permit and report on behavioral ad targeting on 'made-for-kids' videos, even though neither should be possible under COPPA."

Enlarge (credit: josefkubes | iStock Editorial / Getty Images Plus )

Any day now, the FTC is expected to drop "The Big One" on Amazon , an antitrust lawsuit that appears inevitable after the company's so-called "last rites" meeting with FTC officials last week. Through its inquiry, the FTC has taken notice of how Amazon treats sellers on its platform, specifically scrutinizing how Amazon punishes sellers that don't use Amazon's logistics services.

With so much heat coming from the FTC, it seems like bad timing for Amazon to decide to start charging an extra fee to sellers who bypass Amazon's logistics services and instead ship products themselves. But that’s precisely the step that Amazon has taken, Bloomberg reported.

Only sellers who use Amazon's Seller Fulfilled Prime service will have to pay the fee. So most of Amazon's two million sellers won't be affected. But for thousands of sellers who prefer to ship their own products, starting in October, they will have to pay Amazon "a two percent fee on each sale," according to internal documents reviewed by Bloomberg.

Enlarge (credit: NurPhoto / Contributor | NurPhoto )

After a yearslong Amazon probe that collected millions of documents and conducted dozens of interviews, the Federal Trade Commission next week will meet with Amazon representatives before likely filing one of the agency's biggest antitrust lawsuits yet, Politico reported .

Known as a "last-rites meeting," these discussions could serve as Amazon's last chance to dodge an FTC lawsuit that Bloomberg has described as "the Big One." No one is sure what aspects of Amazon's business the lawsuit could target, but if the FTC succeeds in court, it could result in a forced breakup or restructuring of Amazon's $1.3 trillion e-commerce operation, The Wall Street Journal reported .

There has been much speculation this year over what the FTC's complaint will cover. The agency has been investigating a wide range of concerning aspects of Amazon's business since 2019, Bloomberg reported . Everything from how Amazon bundles its services to how Amazon treats sellers has drawn FTC scrutiny, as has Amazon's advertising and cloud computing businesses. But the "main allegation," Bloomberg reported in June, "is expected to be that Amazon leverages its power to reward online merchants that use its logistics services and punish those who don’t."

Enlarge / Lina Khan, chair of the Federal Trade Commission. (credit: Bloomberg / Contributor | Bloomberg )

Antitrust enforcers released a draft update outlining new rules today that officials say will make it easier to crack down on mergers and acquisitions that could substantially lessen competition in the US.

Now the public has 60 days to review the draft guidelines and submit comments to the Federal Trade Commission (FTC) and the Department of Justice (DOJ) before the agencies' September 18 deadline. A fierce debate has already started between those in support and those who oppose the draft guidelines.

Over the next two months, the FTC hopes to gain widespread public support for what the FTC has positioned as commonsense updates as tech mergers have recently raised complex legal questions. In a press release , FTC Chair Lina M. Khan said that the merger guidelines "contain critical updates" and were "informed by thousands of public comments—spanning healthcare workers, farmers, patient advocates, musicians, and entrepreneurs."

Enlarge / Artist's conception of Microsoft marching toward a final Activision deal after mooting competition concerns from Sony and the FTC. (credit: Activision)

Sony and Microsoft signed a binding agreement over the weekend ensuring that Call of Duty will remain on PlayStation for at least 10 years after Microsoft's proposed purchase of Activision is complete. The agreement, which Sony had resisted signing for months, effectively ends a bitter battle between the two console giants over the alleged anti-competitive effects of Microsoft's $69 billion Activision purchase, which was first proposed back in January 2022 .

The new agreement also effectively moots one of the most significant arguments made by the FTC in its federal case to block the merger, which failed to earn an FTC-sought injunction last week . And it's likely not a coincidence that the agreement with Sony was announced just one day after a federal appeals court denied the FTC's request for an appeal over that injunction decision.

The deal, as announced over the weekend by Xbox Chief Phil Spencer and Microsoft Vice Chair and President Brad Smith , doesn't seem to include a promise of PlayStation access to any of Activision Blizzard's other popular franchises (including Crash Bandicoot, Spyro, Overwatch, Diablo, and more). But the fate of Call of Duty has long been the major focus of both Sony and regulators. Court documents revealed that Call of Duty alone is worth at least $800 million in annual revenue to Sony and that up to 20 million PlayStation owners spend a significant portion of their console playtime on the series (including 1 million PlayStation owners who literally play no other games on the system).

Enlarge / Elon Musk arrives for the 2022 Met Gala at the Metropolitan Museum of Art on May 2, 2022, in New York. (credit: Getty Images | Angela Weiss)

Elon Musk is trying to avoid a deposition with the Federal Trade Commission and wants a court to terminate or modify a privacy settlement that Twitter and the FTC agreed to last year before Musk bought the company. The May 2022 settlement lets the FTC monitor and enforce Twitter's compliance, and Twitter claims the US agency became overly aggressive in its investigative demands after Musk bought the firm.

"This motion asks the Court to rein in an investigation that has spiraled out of control and become tainted by bias, and to terminate a misfit consent order that no longer can serve any proper equitable purpose," Musk's X Corp. wrote in a motion filed today in US District Court for the Northern District of California.

Republicans in Congress have also been criticizing the FTC's investigation into Twitter, including at a House Judiciary Committee hearing today.