FTC v. Amazon: Market Definitions and Section 5 of the FTC Act

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The Author

Jonathan RubinMoginRubin LLP

For more than two decades Rubin has focused his legal practice exclusively on antitrust and competition law and policy. As a litigator, he has led trial teams in major antitrust cases in courts throughout the country. As a thought-leader in competition law, he has published in influential academic journals and has spoken to numerous professional groups, including the Directorate General for Competition of the European Commission, the Antitrust Section of the American Bar Association, the University of Wisconsin, and the American Antitrust Institute. Rubin has also made several appearances before Congressional committees.

Rubin received his J.D. from University of Florida, Levin College of Law. Mogin also holds a PhD in Economics from the University of Copenhagen, an MA in Economics from Florida Atlantic University, and a BS in Biological Sciences from the University of Wisconsin at Madison.

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FTC v. Amazon:

Market Definitions and Section 5 of the FTC Act

Traditional antitrust economics faces significant challenges grappling with the new economy industrial environment, and the Amazon case is likely to be a crucial test for antitrust and the usefulness of Section 5 of the FTC Act.

The key issue is whether a price increase on Amazon could drive online shoppers to Google Shopping, Walmart, Target, Costco, eBay, Home Depot, Best Buy, Wayfair, or any number of other online retail destinations that are potential substitute outlets for products sold on Amazon.

Abstract:

The Federal Trade Commission’s (FTC) challenge to Amazon.com’s practices relating to its participation on its own platform—competing with the many merchants who rely on the powerful commercial hub to make sales—violate the Federal Trade Commission Act. The court’s analysis is likely to depend heavily on the FTC’s definition of the relevant antitrust markets in which it claims Amazon possesses market power and harms competition. Traditional antitrust economics face significant challenges grappling with the relatively new digital economy. The author examines these and other issues raised in the case, which he anticipates will be a crucial test for antitrust and the FTC Act.

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