Amazon (NASDAQ:AMZN) is bracing for an antitrust lawsuit spearheaded by the Federal Trade Commission (FTC), according to a Bloomberg report. The suit will focus on Amazon’s online marketplace and the allegations that it unfairly favors merchants using its logistics services. The complaint, which could be lodged in the next few weeks, marks a significant turning point for FTC Chair Lina Khan, a vocal critic of Amazon’s potential to stifle competition.
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Khan’s previous critiques of Amazon’s power, notably expressed in her 2017 article “Amazon’s Antitrust Paradox,” have led Amazon to question her impartiality, requesting her recusal from its antitrust cases—a plea she has so far rejected. Besides the upcoming lawsuit, the FTC has already challenged Amazon on various fronts, including deceptive practices related to its Prime subscriptions and privacy issues with Alexa and Ring products. The forthcoming lawsuit, targeting Amazon’s core business, aligns with Khan’s preference for structural changes, like breakups, over mere promises of behavioral changes, suggesting a settlement might be off the table.
Nevertheless, analysts still have a Strong Buy consensus rating on AMZN stock based on 37 Buys, one Hold, and zero Sells assigned in the past three months, as indicated by the graphic above. Furthermore, the average price target of $141.09 per share implies 10.65% upside potential.
