CCIA Blasts Reports of Looming FTC Suit to Force Breakup of Amazon Prime’s Logistics

The Computer & Communications Industry Association reacted with scorn Thursday to reports the FTC is expected to sue Amazon to break Amazon Prime’s free two-day shipping and force divestiture of the company’s logistics critical to the business model that enables small and medium-sized sellers to sell through Amazon’s store. The FTC is expected to allege Amazon leverages its position to reward online merchants that use its logistics services and punish those that don’t, said CCIA. “It’s difficult to understand why at a time when Americans are frustrated with rising prices, the FTC is prioritizing a case against a service that consumers love, which enables small and medium-sized sellers to reach customers worldwide,” said CCIA President Matt Schruers in a statement. “What has given the U.S. a more competitive tech industry that benefits consumers and lowers prices has been a legal and regulatory framework that focuses on how companies’ actions impact consumers -- not other would-be competitors," he said. Consumers complain of high prices for prescription drugs, food and gas, digital goods and services, but they're “getting more affordable all the time, with many offering free products and free shipping,” he said. “Consumers are best served when regulators focus on consumer harm, and in industries where prices are high due to lack of competition.” The FTC, in an email, declined comment. Amazon didn't respond to a query. The FTC’s June 21 lawsuit alleged Amazon “has knowingly duped” millions of consumers for years into “unknowingly enrolling” in Amazon Prime, in violation of the FTC Act and the Restore Online Shoppers’ Confidence Act (see 2306210064).