Amazon is being sued by the US federal Trade Commission (FTC) and 17 states of illegally maintaining its monopoly power by using a set of anticompetitive and unfair strategies, including its Buy Box feature.

According to the FTC, Amazon manipulates the competition to apear in Buy Box to disadvantage sellers and consumers, favouring its own products and those using its fulfillment services.

The suit says that 98 percent of Amazon sales are made through Buy Box, and that the company only allows third-party sellers to access the Buy Box if they promise not to offer their products for less money on other sites. Sellers who violate this rule can be denied access to the Buy Box, which Amazon acknowledges will "tank" the seller's sales. 

It also argues that the company's policies and fees surrounding the Buy Box reportedly create an "artificial price floor" across online marketplaces, impeding sellers from offering competitive prices and hindering consumer choice.

The FTC contends that these practices allow Amazon to artificially inflate prices, degrade the quality of service for shoppers, and unfairly exclude competitors. The lawsuit seeks to halt Amazon's alleged unlawful conduct and implement "structural relief" if necessary, though it does not explicitly call for breaking up the company.

Amazon denied the allegations, arguing that its practices foster competition, innovation, and benefit consumers and small businesses. The company warns that if the FTC prevails, it could lead to fewer product options, higher prices, and slower deliveries for consumers.