Could Amazon's Antitrust Lawsuit Spell Doom for the Stock?
After months during which rumors about looming regulatory action swirled, news broke on Tuesday that the Federal Trade Commission (FTC) and 17 states had filed an antitrust lawsuit against Amazon (NASDAQ: AMZN), charging that the company engages in anticompetitive practices.
The suit alleges the e-commerce giant is a monopoly and "uses a set of interlocking anticompetitive and unfair strategies to illegally maintain its monopoly power." The complaint further suggests that, as a result of Amazon's actions, competition is limited, consumers pay higher prices, and sellers on its platform are locked in. As a result of this landmark lawsuit, the tech giant could be subject to fines or "structural remedies," which could even result in its breakup.
What does this antitrust litigation mean for Amazon? Perhaps as important for shareholders, could it ultimately spell trouble for Amazon stock?
Source Fool.com
