ACT | The App Association statement from president Morgan Reed on FTC suit against Amazon

Today, ACT | The App Association released a statement from president Morgan Reed on the FTC action against Amazon:

“Today’s announcement is another attempt by the FTC to reshape innovation by challenging the value of digital marketplaces for small businesses.

“The smallest companies, including our members, benefit the most from today’s digital marketplaces. By taking advantage of bundled services offered through online marketplaces such as reduced overhead costs, immediate global distribution, and most importantly, a fast track to consumer trust, our members can compete in a global marketplace.

“Our members’ customers prefer these integrated services, the most recognizable of which is Amazon’s Prime bundle, which the FTC is targeting in this case. Today’s lawsuit not only fails to appreciate the importance of the online marketplace model but seeks to declare the most pro-competitive parts of it illegal.

“Today’s filing is a wake-up call for small businesses, like our members, and their customers. Legacy businesses have significant clout inside the beltway and are clearly gaining ground in their efforts to reshape the law to fit their financial interests. If the small innovator is ignored, the entrenched sellers will be FTC-empowered to get what they want, and small businesses will end up paying the price.”