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."
It’s a chicken-and-egg problem: Restaurants are struggling with record-high U.S. egg prices, but their omelets, scrambles and huevos rancheros may be part of the problem. Breakfast is booming at U.S. eateries. First Watch, a restaurant chain that serves breakfast, brunch and lunch, nearly quadrupled its locations over the past decade to 570. Fast-food chains like Starbucks and Wendy's added more egg-filled breakfast items. In normal times, egg producers could meet the demand. But a bird flu outbreak that has forced them to slaughter their flocks is making supplies scarcer and pushing up prices. Some restaurants like Waffle House have added a surcharge to offset their costs.
William Falcon, CEO and Founder of Lightning AI, discusses the ongoing feud between Elon Musk and Sam Altman, and how everyday people can use AI in their lives.
U.S. tariffs on steel and aluminum “will not go unanswered,” European Union chief Ursula von der Leyen vowed on Tuesday, adding that they will trigger toug
The Trump administration has ordered the Consumer Financial Protection Bureau to stop nearly all its work, effectively shutting down the agency that was created to protect consumers after the 2008 financial crisis and subprime mortgage-lending scandal. Russell Vought is the newly installed director of the Office of Management and Budget. Vought directed the CFPB in a Saturday night email to stop work on proposed rules, to suspend the effective dates on any rules that were finalized but not yet effective, and to stop investigative work and not begin any new investigations. The agency has been a target of conservatives since President Barack Obama created it following the 2007-2008 financial crisis.
Jeff Benedict, author of 'The Dynasty,' weighs in on the Kansas City Chiefs being the next big dynasty, who he thinks will win Super Bowl LIX and more. Watch!
