By Sam Boughedda
Amazon (NASDAQ:AMZN) could reportedly face an antitrust lawsuit from the Federal Trade Commission that would challenge a variety of the tech giant's business practices, according to The Wall Street Journal, citing people familiar with the matter.
The report states that the FTC is investigating whether some of Amazon's practices are anti-competitive. However, the timing of any case is not yet certain, and the commission could also decide not to proceed, as it doesn't always bring cases even if it makes preparations to do so.
The WSJ adds that Amazon officials haven't yet been involved in individual late-stage meetings with each FTC commissioner to provide their arguments against a legal challenge.
According to the publication, the commission has been assessing Amazon's practices in recent years, such as whether it favors its own products over competitors on its platforms and how it treats outside sellers.
In addition, it is said that the FTC, which began investigating Amazon during the tenure of Republican Chairman Joseph Simons, has been examining Amazon Prime subscription service's bundling practices. It is unclear which aspects the FTC would target in a potential Amazon lawsuit.
FTC Chair Lina Khan has previously argued in an academic paper that Amazon has gained too much market power, and antitrust law has failed to restrain it.
Amazon shares are down more than 4% Friday after its earnings release on Thursday evening.