The FTC Is Suing Amazon: Here's What Investors Need to Know

Governments around the world continue to go after big technology firms. The latest one caught in the crosshairs is Amazon (NASDAQ: AMZN). On Sept. 26, the Federal Trade Commission (FTC) announced its suit against the company, which has an approximately 40% share of U.S. e-commerce, for using anti-competitive strategies to maintain an illegal monopoly position in online retail.

The lawsuit alleges Amazon has a strategy to keep prices high, suck money from third-party sellers with advertisements, and force merchants to adopt its platform services. But is this true? And can this lawsuit hurt Amazon's profit potential? Let's dig in and try to find some answers.

The FTC -- along with 17 other states that are joining in the lawsuit -- has laid out the following claims:

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Source Fool.com