Amazon scored a partial win in the FTC’s case against the company, with a federal judge dismissing some of the agency’s claims against the company.

The FTC, along with 17 states, sued Amazon in September 2023 alleging “exclusionary conduct” in an effort stifle competition and disrupt rivals.

“Our complaint lays out how Amazon has used a set of punitive and coercive tactics to unlawfully maintain its monopolies,” said FTC Chair Lina M. Khan at the time of the lawsuit. “The complaint sets forth detailed allegations noting how Amazon is now exploiting its monopoly power to enrich itself while raising prices and degrading service for the tens of millions of American families who shop on its platform and the hundreds of thousands of businesses that rely on Amazon to reach them. Today’s lawsuit seeks to hold Amazon to account for these monopolistic practices and restore the lost promise of free and fair competition.”

In its initial complaint, the FTC made clear that it was not suing Amazon because of its size, but because it uses its size unfairly. In particular, the FTC took aim at the company’s practice of trying to force sellers to gain “Prime” status, as well as punishing those who charged less for their products via other outlets. The company’s fees, sometimes accounting for half of a sellers earnings, also drew criticism.

“We’re bringing this case because Amazon’s illegal conduct has stifled competition across a huge swath of the online economy. Amazon is a monopolist that uses its power to hike prices on American shoppers and charge sky-high fees on hundreds of thousands of online sellers,” added John Newman, Deputy Director of the FTC’s Bureau of Competition. “Seldom in the history of U.S. antitrust law has one case had the potential to do so much good for so many people.”

According to The Wall Street Journal, US District Judge John Chun has agreed with Amazon, scaling back some of the FTC’s case. Judge Chun’s order remains under seal, meaning its unknown exactly what part of the FTC’s case was dismissed. Nonetheless, despite the good news for Amazon, the Journal reports that the FTC’s main claims remain intact.

Given the FTC’s dominance of the e-commerce market, the FTC’s case could have profound repercussions for the entire industry. The fact that the main portion of the agency’s case remains intact means a court will ultimately decide the fate of the e-commerce industry.