Booksellers and authors in the United States have united to request an investigation by the Federal Trade Commission (FTC) into Amazon’s purported monopolistic control over the book industry.

This call for action comes as Amazon faces an imminent antitrust lawsuit, adding to the mounting pressure on the e-commerce behemoth.

In a letter signed by critics of Amazon, including the American Booksellers Association, the Authors Guild, and the antitrust nonprofit Open Markets Institute, concerns are raised about the company’s practices that are alleged to have enabled it to establish an iron grip on book sales and exert undue influence over the promotion and demotion of book titles.

The letter argues that the FTC should delve into how Amazon has leveraged “unfair methods of competition” to gain dominance in the book market.

This appeal coincides with reports that Amazon executives are scheduled to meet with FTC officials in what is colloquially termed a “last rites” meeting – a meeting seen as the final step before a formal federal antitrust action is taken against Amazon’s vast online retail operation.

Amazon’s tricks

Critics point out that Amazon’s algorithms and practices give the company an extensive control over what readers see when they browse for books.

The letter, addressed to Lina Khan, the FTC chair, and Jonathan Kanter, the Justice Department’s antitrust chief, highlights Amazon’s market position, drawing parallels to the monopolistic practices of railroads in the 19th century.

It notes that Amazon, much like railroads of the past, holds significant sway in the book market, influencing which products reach consumers.

The letter also highlights Amazon’s substantial sales dominance within the US publishing industry. Amazon is said to account for over 50% of all physical books sold in the retail marketplace, as well as more than 90% of physical books sold online and over 80% of e-books.

Strong-arm tactics

Accusations in the letter range from claims of Amazon using strong-arm tactics to enforce onerous contract terms on traditional publishers to allegedly promoting its own listings and pricing over others.

The authors of the letter point out that the number of brick-and-mortar bookstores in the US has dwindled significantly over the years, falling from approximately 12,000 in 1998 to just over 6,000 in 2019.

Amazon’s response to these allegations remains to be seen. The implications of a potential FTC or DOJ lawsuit targeting Amazon’s operations are still unclear.

Reports from June indicated that the FTC was preparing a comprehensive antitrust suit focused on Amazon’s core online marketplace.