On September 26, the U.S. Federal Trade Commission, which regulates businesses, sued Amazon citing warped pricing.
This is the second government-filed antitrust lawsuit, following the one against Google that is currently ongoing.
The FTC claimed that Amazon uses its market power and size and to coerce sellers to agree to their terms, thus influencing the prices of goods.
According to FTC chairperson Lina Khan, sellers pay "1 of every $2 to Amazon" causing buyers to pay more on both Amazon and across the internet.
Khan argues that this manipulation of prices prevents the public from accessing the benefits of open, fair, and free competition.
The suit was filed in Washington state, where Amazon is based, and packed by 17 attorneys general including two Republicans.
According to the FTC, sellers are not allowed to discount goods to rates lower than Amazon-listed prices.
In a statement defending these allegations, Amazon said that the practices being challenged by the FTC have in fact boosted competition and innovation.