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FTC Suggests Possible Amazon Breakup in Antitrust Lawsuit

| Mike O'Brien

The Federal Trade Commission and 17 state attorneys general filed a long-expected antitrust lawsuit against Amazon, with the FTC accusing the company of monopolistic behavior on a broad scale and suggesting a breakup as one form of injunctive relief. The company used its market power to block competition, inflate prices and degrade product quality, the FTC alleges.

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Second Prime Day On Tap in October

| Mike O'Brien

When is Amazon Prime Day not Prime Day, but actually is? When it’s rebranded as Prime Big Deal Days. The ecommerce giant has once again announced a second sales event in October, as it did in 2022, when it was called Prime Early Access Sale. Amazon said only that it will be running in 19 countries. Last year it performed poorly compared to the July event, according to Bank of America.

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Amazon Breakup Would Be a Mistake, Analysts Say

| Mike O'Brien

While it’s been widely reported that Federal Trade Commission head Lina Kahn is planning to drop a massive antitrust lawsuit against Amazon, analysts at Baird argue in a research note that the move would be wrong-headed because the company’s success is based on innovation and investment, not monopolistic practices. The FTC has already accused Amazon of duping millions into signing up for Prime.

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FTC: Amazon Duped Consumers into Prime, Then Made It Hard to Leave

| Mike O'Brien

The Federal Trade Commission has filed suit against Amazon, alleging it duped millions of consumers into signing up for its Prime subscription program, then made it difficult for them to quit, an allegation the company vigorously denies. The FTC claims Amazon intentionally complicated the cancellation process, adding it “slowed or rejected changes that would’ve made it easier …”

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Consumer Data Privacy on the March

| Mike O'Brien

The California Privacy Rights Act (CPRA), an amendment to the 2018 CCPA, went into effect Jan. 1, requiring publishers/advertisers to comply with new consumer data privacy guidelines. Other states including Connecticut, Colorado and Virginia are getting onboard. We break down the initiatives and their implications in this podcast.

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Amazon Cutting 9,000 More Jobs; iRobot Facing Opposition

| Mike O'Brien

More bad Amazon news: 9,000 additional layoffs are planned on top of 18,000 previously announced, and there are efforts to block the $1.7 billion iRobot acquisition here and in the EU. On the plus side, the FTC reportedly won’t block Amazon’s purchase of One Medical, but reportedly not for lack of evidence of anticompetitive behavior.

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Fake Reviews Make Nearly All Lose Brand Trust

| Mike O'Brien

In its latest report on the topic, user-generated content firm Bazaaarvoice found nearly all consumers responding to its survey (97%) lose trust in a brand based on fake reviews, while 81% said they wouldn’t use a brand again after a loss of trust, and 75% said a fake review makes them distrust other products on the same site.

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Kroger and Albertsons Deal Facing D.C. Antitrust Scrutiny

| Mike O'Brien

Senators are asking for a hearing and FTC oversight to review the proposed $24.6 billion mega deal merging Kroger and Albertsons into a grocery powerhouse, expressing concerns about its impact on the competitive landscape and on consumers dealing with soaring prices. The FTC has its work cut out with a hot political football.

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Feds, 11 States Accuse Google in Massive Antitrust Case

| Mike O'Brien

The U.S. Department of Justice, joined by attorneys general from 11 states, has filed an antitrust lawsuit against Google alleging it used its market power to thwart competition in search and advertising, setting up a battle on the level of the 1990s federal action against Microsoft.