Beyond Market Definition: Key Economic Concepts in FTC v Amazon
The Federal Trade Commission’s (FTC) antitrust suit against Amazon, originally filed in October 2023, is scheduled for trial in October 2026. While we’ve previously explored the market-definition questions at the center of this case, several other economic concepts will be equally important in determining whether Amazon has violated antitrust laws.
Ahead of a scheduled March 7 “economics day” hearing before the U.S. District Court for the Western District of Washington, both sides have filed statements outlining their views on the economic concepts that will be central to the case, providing a fascinating window into what will ultimately be a battle of economic theories when the case moves to trial. The FTC focuses on Amazon’s alleged exclusionary tactics that the commission contends prevent rivals from scaling and competing effectively. For its part, Amazon stresses that its business practices represent competition on the merits that benefit consumers through lower prices and better service.
In this post, we hope to offer interested observers a roadmap to the economic issues at play. We will explain the core economic concepts (beyond market definition) that will shape the case and the nature of the disagreement between the parties.