Amazon allegedly used algorithm to boost prices - WSJ
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In its lawsuit against Amazon (NASDAQ:AMZN), the FTC is accusing the e-commerce giant of secretly developing an algorithm that would examine how much it could raise prices so that competitors would follow.

The Wall Street Journal reported that the algorithm, code named Project Nessie, helped Amazon boost its profit. And because of Amazon's (AMZN) dominance, it led competitors to boost their prices as well.

The newspaper said that in cases where competitors didn't also raise their price for an item, the algorithm would then have the product price on Amazon (AMZN) reduced to its prior price.
The Journal, citing sources, added that Amazon (AMZN) stopped using the algorithm in 2019. The algorithm is mentioned in redacted portions of the lawsuit against the company.
Last month, the FTC and 17 state attorneys general sued Amazon (AMZN) alleging it is a monopolist that uses a set of interlocking anticompetitive and unfair strategies to illegally maintain its monopoly power.
While Amazon's (AMZN) share price has faltered a bit since the case was filed, Seeking Alpha contributor Tradevestor provides nine reasons why he is a buyer of the stock now.


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