While a separate case will tackle Amazon’s monopoly status, a federal trial that began this week is already probing a related question: Did the company use its market power to create a monopoly on confusion? The Federal Trade Commission is linking Amazon’s allegedly deceptive Prime tactics to its dominant position in e-commerce.
The government’s lawsuit suggests that only a company with Amazon’s market power could get away with such practices. A smaller competitor, the argument goes, would be punished by the market for using confusing “dark patterns” and a frustrating “Iliad” cancellation process, as customers would simply leave for a rival.
By tying customers into Prime through deceptive means, Amazon not only generated subscription revenue but also deepened its competitive moat. Prime members are more likely to shop exclusively on Amazon, further cementing the company’s dominance.
This trial, while officially about consumer deception, is therefore deeply intertwined with the broader concerns about Amazon’s market power. The FTC is painting a picture of a company so confident in its dominance that it felt free to manipulate its customers without fear of consequence.
Amazon will likely seek to keep the two issues separate. Its defense will focus strictly on the legality of its design choices, arguing that they have nothing to do with market power and are standard practices in a competitive e-commerce landscape.
