The Federal Trade Commission (FTC) alleges that Amazon used an internal pricing algorithm, known as Project Nessie, to manipulate market prices. The system identified products where competitors were likely to match price increases, allowing Amazon to raise prices and maintain them once rivals followed suit.
The FTC claims the tool generated between $1 billion and $1.4 billion in excess profits from 2014 to 2019. In April 2018 alone, the algorithm set prices for over 8 million items, which were viewed by shoppers more than 400 million times.
Court documents indicate the algorithm was toggled on and off at least eight times between 2015 and 2019. The FTC alleges Amazon paused the system during periods of regulatory scrutiny. While Amazon claims the tool was discontinued in 2019, internal documents suggest it was used in experiments as late as 2022.
Amazon denies the allegations, stating the tool was meant to prevent unsustainable price drops and was ineffective. However, internal company communications described the project as an incredible success. The trial for the antitrust case is scheduled for October 2026.
