In recent years, Amazon has faced increasing lawsuits and regulatory pressure due to allegations of unfair competition and monopolistic practices. In 2021, many sellers were confronted with unreasonable account closures, and in 2024, the U.S. Federal Trade Commission (FTC) filed an antitrust complaint against Amazon, inspiring SMEs to defend their rights.
The FTC accuses Amazon of abusing its market dominance by forcing third-party sellers to accept high commissions and unreasonable restrictive terms while using platform algorithms to suppress competitors. Furthermore, Amazon leverages its private-label brands to further weaken the competitiveness of third-party sellers. These actions violate U.S. antitrust laws and are also considered unfair competition.
Key Inspirations:
1. Understand Antitrust Laws: Safeguard Fair Competition
Antitrust laws are not just tools for large corporations; SMEs can also use them to protect their interests. The Sherman Act Section 2 specifically prohibits companies from using their market dominance to stifle competition or exclude rivals. Amazon’s actions, including opaque algorithm control, price manipulation, and exorbitant fees, may violate these antitrust laws. Additionally, Section 5 of the Federal Trade Commission Act prohibits any unfair business practices. SMEs should familiarize themselves with these laws and seek legal avenues, such as filing complaints with the FTC or consulting legal experts for further action.
2. Unfair Competition Law: Another Path to Legal Recourse
Apart from antitrust law, unfair competition law provides another layer of legal protection for SMEs. For example, Amazon might use third-party sellers’ sales data to develop its own products and give them favorable platform positioning. According to the Lanham Act, such practices could constitute unfair competition. When faced with such issues, sellers can gather evidence to prove the platform’s unfair behavior and take legal action.
3. Alliance cooperation and Class-action
When facing multinational giants like Amazon, individual SMEs may seem powerless. However, by forming alliances with other affected companies, class-action litigation or complaints can wield greater influence. For example, participating in industry associations or cross-border e-commerce seller alliances allows businesses to share information, pool legal resources, and drive class-action litigation or file complaints. This approach has proven effective in several antitrust cases.
