Mashable: The 'Project Nessie' aided Amazon in augmenting its profits by artificially inflating prices across various shopping categories.

The prominent e-commerce entity Amazon reportedly implemented a confidential algorithm to assess the extent to which it could potentially elevate prices on its platform. This purportedly aided the organization in increasing its overall profitability.

The Wall Street Journal, in a report published recently, referenced redacted sections of the Federal Trade Commission (FTC) lawsuit against the e-commerce company. According to the report, Amazon employed the 'Project Nessie' algorithm to systematically increase prices, thereby influencing competitors to adopt similar pricing strategies.

The 'Project Nessie' aided Amazon in augmenting its profits by artificially inflating prices across various shopping categories. According to reports, the company ceased utilizing the undisclosed algorithm in 2019.

"We once again urge Amazon to promptly eliminate the redactions and grant the American public access to the complete extent of what we assert are their illicit monopolistic practices," stated a spokesperson from the Federal Trade Commission (FTC).

Led by Lina Khan, the FTC, along with 17 state Attorneys General in the United States, filed a lawsuit against Amazon last month, alleging that the online retail and technology giant is a monopolistic entity that employs a series of interconnected anti-competitive and unjust strategies to unlawfully sustain its monopoly power.

The FTC and its state counterparts contend that Amazon's actions enable it to impede competitors and sellers from reducing prices, compromise the quality of products for consumers, overcharge sellers, hinder innovation, and prevent fair competition against Amazon.

Amazon used an algorithm code-named “Project Nessie” to test how much it could raise prices in a way that competitors would follow, according to redacted portions of the Federal Trade Commission’s monopoly lawsuit against the company https://t.co/XzIEhYDcAM

— The Wall Street Journal (@WSJ) October 3, 2023
"Our complaint articulates the manner in which Amazon has employed a series of punitive and coercive strategies to unlawfully sustain its monopolistic position," FTC Chair Khan stated.

She further emphasized that the complaint presents comprehensive allegations, highlighting how Amazon is currently leveraging its monopoly power to enhance its own financial gains, simultaneously increasing prices and diminishing the quality of service for the vast number of American families who utilize its platform, as well as the numerous businesses that depend on Amazon as a means to connect with their customers.