The US competition regulator and 17 state attorneys general have filed a lawsuit against the e-commerce giant after completing a year-long investigation into its business model. It is considered one of the biggest legal challenges the company has faced since its inception in 1994.

In the filing, the FTC alleged that Amazon maintained its dominant position in the marketplace through a series of “anti-competitive and unfair” strategies that harmed competitors. 

Amazon has denied the allegations, saying the lawsuit is “wrong on the facts and law”.

As part of the suit, the FTC has asked the court to issue a permanent injunction that would prohibit Amazon from engaging in its unlawful conduct and loosen its “monopolistic control to restore competition”.

“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...