FTC Exposes Amazon's Hidden Algorithm Amid Antitrust Concerns
Portfolio Pulse from Anusuya Lahiri
Amazon is under scrutiny for a secret algorithm, 'Project Nessie', allegedly used to manipulate prices. The FTC has included these allegations in its monopoly lawsuit against Amazon. The algorithm, no longer in use, was reportedly instrumental in enhancing Amazon's profits. It also led competitors to inflate their prices. When competitors like Target offered discounts, Amazon would match these lower prices. The FTC indicates that Project Nessie 'extracted' a significant amount from American households and generated an undisclosed amount of 'excess profit' for Amazon.
October 03, 2023 | 6:29 pm
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Amazon is under scrutiny for its alleged use of a secret algorithm to manipulate prices, which could have legal and regulatory implications.
The FTC's allegations against Amazon could lead to legal and regulatory consequences, which could negatively impact the company's stock price in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
NEUTRAL IMPACT
Apple was mentioned as a tech giant that has faced similar regulatory scrutiny.
Apple was mentioned as a tech giant that has faced similar regulatory scrutiny. This does not directly impact Apple's stock, but indicates a broader regulatory trend.
CONFIDENCE 75
IMPORTANCE 25
RELEVANCE 25
NEUTRAL IMPACT
Microsoft was mentioned as a tech giant that has faced similar regulatory scrutiny.
Microsoft was mentioned as a tech giant that has faced similar regulatory scrutiny. This does not directly impact Microsoft's stock, but indicates a broader regulatory trend.
CONFIDENCE 75
IMPORTANCE 25
RELEVANCE 25
NEUTRAL IMPACT
Target was mentioned as a competitor that Amazon would match lower prices with.
Target was mentioned as a competitor that Amazon would match lower prices with. This could have implications for Target, but the direct impact is unclear.
CONFIDENCE 75
IMPORTANCE 50
RELEVANCE 50