A deal between Apple and Amazon to sell the technology giant's products on the e-commerce platform has come under scrutiny by federal regulators, according to media reports.
The Federal Trade Commission (FTC) is reportedly investigating the agreement for its impact on small resale suppliers that sell discounted and refurbished Apple products.
"Apple does have certain rights as a seller, but rights aren't unlimited," Joel Mitnick, an antitrust attorney and former FTC lawyer told Cheddar on Tuesday, stressing that any coordination between Apple and Amazon to undercut low-cost sellers would be illegal.
The Verge first reported the probe last week, citing a reseller who was interviewed by investigators.
"The FTC does not confirm the existence of investigations or comment on them," the agency told Cheddar.
Apple ($AAPL) and Amazon ($AMZN) first inked the deal in November last year to increase sales and limit the proliferation of fake products, or those falsely advertised as coming from Apple itself.
The issue is whether there is a "conspiracy that is really aimed at discounters," Mitnick said. "It raises the question of monopolization."
The FTC's reported inquiry comes as the government has become increasingly willing to investigate — and crack down on — major technology companies for privacy and antitrust violations.
In February, the FTC's Bureau of Competition announced the formation of a Technology Task Force that would be dedicated to monitoring and investigating competition in the U.S. technology sector.
"It makes sense for us to closely examine technology markets to ensure consumers benefit from free and fair competition," Joe Simons, the FTC's chairman, said in a statement at the time. "Our ongoing Hearings on Competition and Consumer Protection in the 21st Century are a crucial step to deepen our understanding of these markets and potential competitive issues. The Technology Task Force is the next step in that effort."
Ford is recalling more than 355,000 of its pickup trucks across the U.S. because of an instrument panel display failure that’s resulted in critical information, like warning lights and vehicle speed, not showing up on the dashboard.
Nvidia reported a 56% increase in second-quarter revenue and a 59% rise in net income compared to a year ago.
The Rev. Al Sharpton is set to lead a protest march on Wall Street to urge corporate America to resist the Trump administration’s campaign to roll back diversity, equity and inclusion initiatives. The New York civil rights leader will join clergy, labor and community leaders Thursday in a demonstration through Manhattan’s Financial District that’s timed with the anniversary of the Civil Rights-era March on Washington in 1963. Sharpton called DEI the “civil rights fight of our generation." He and other Black leaders have called for boycotting American retailers that scaled backed policies and programs aimed at bolstering diversity and reducing discrimination in their ranks.
President Donald Trump's administration last month awarded a $1.2 billion contract to build and operate what's expected to become the nation’s largest immigration detention complex to a tiny Virginia firm with no experience running correction facilities.
Netflix CEO Ted Sarandos claims audiences don't want to watch Netflix movies in theaters, but that seems not to be the case recently.
Chipmaker Nvidia is poised to release a quarterly report that could provide a better sense of whether the stock market has been riding an overhyped artificial intelligence bubble or is being propelled by a technological boom that’s still gathering momentum.
Cracker Barrel said late Tuesday it’s returning to its old logo after critics — including President Donald Trump — protested the company’s plan to modernize.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
Cracker Barrel is sticking with its new logo. For now. But the chain is also apologizing to fans who were angered when the change was announced last week.
