Details of ``Project Nessie'', a secret plan to raise prices and knock down rivals that brought Amazon more than 220 billion yen in revenue, revealed
Amazon has been sued by
Amazon Used Secret 'Project Nessie' Algorithm to Raise Prices - WSJ
https://www.wsj.com/business/retail/amazon-used-secret-project-nessie-algorithm-to-raise-prices-6c593706
New report details 'Project Nessie' algorithm flagged in FTC lawsuit against Amazon - SiliconANGLE
https://siliconangle.com/2023/10/03/new-report-details-project-nessie-algorithm-flagged-ftc-lawsuit-amazon/
Amazon Used Secret Algorithm to Raise Prices and Influence Rivals - The Messenger
https://themessenger.com/tech/amazon-used-secret-algorithm-to-raise-prices-and-influence-rivals
Amazon duped buyers out of more money with a secret algorithm
https://www.androidheadlines.com/2023/10/amazon-project-nessie-algorithm-price-increases-ftc-lawsuit.html
Amazon reportedly used a secret algorithm to jack up prices - The Verge
https://www.theverge.com/2023/10/3/23901840/amazon-project-nessie-algorithm-antitrust-ftc-complaint
On September 26, 2023, the Federal Trade Commission (FTC) filed a lawsuit against Amazon along with the attorneys general of 17 states. According to the FTC, Amazon engages in anticompetitive behavior in two areas: the online supermarket marketplace for shoppers and the online marketplace services marketplace for sellers. Specifically, Amazon is a consumer service that imposes sanctions on sellers to prevent them from offering lower prices than Amazon on other online services, and requires sellers in the marketplace to use Amazon's delivery service. For example, it has been raised as a problem that it is not possible to qualify as an ``Amazon Prime eligible product.'' The complaint filed by the FTC in court in this case contained the mysterious words 'Project Nessie,' but the details were unclear because related items were blacked out and not disclosed.
Amazon is being sued by regulators and 17 states for violating antitrust laws, and the existence of a mysterious price manipulation algorithm called ``Project Nessie'' has come to light - GIGAZINE
The Wall Street Journal has reported details about Project Nessie, based on information obtained from former Amazon employees and people familiar with the FTC lawsuit. According to the newspaper, Project Nessie is an algorithm to inflate prices and monitor whether other retailers follow suit. If competing retailers do not follow Amazon's price hikes, Project Nessie will automatically return the prices of products listed by Amazon to normal prices.
According to reports, the algorithm was used in a variety of shopping categories until Amazon discontinued its use in 2019, and it appears to have contributed to artificially inflating the prices of products. It is estimated that by using Project Nessie, Amazon has earned more than 1.5 billion dollars (about 220 billion yen).
The FTC alleges in its complaint that ``Amazon implemented the algorithm for the express purpose of preventing other online stores from selling products at lower prices.'' A former Amazon employee told the Wall Street Journal that in some cases, competitors' 'efforts to match Amazon's discounts' led other retailers to lower the prices of their products. Apparently there is.
The existence of algorithms such as Project Nessie, which lowers prices while increasing the price of products as much as possible compared to Amazon's competitors, is explained in the book 'Winner Sells All: Amazon, Walmart, and Amazon' by Jason Del Rey. This is also pointed out in 'The Battle for Our Wallets'.
Amazon.co.jp: Winner Sells All: Amazon, Walmart, and the Battle for Our Wallets (English Edition) e-book: Del Rey, Jason: Kindle Store
FTC Spokesman Douglas Farrar told the Wall Street Journal: ``We will release information about Project Nessie, which has been hidden from Amazon, to ensure that the full scope of its illegal monopolistic practices is revealed to the American people.'' I once again request that this be disclosed.'
However, David Zapolsky, Amazon's senior vice president and general counsel for global public policy, responded to the FTC's lawsuit by saying, 'The FTC's lawsuit challenges our company's practice of emphasizing only competitive price offers. , alleging that our practice of matching lower prices offered by other retailers has somehow led to higher prices. But this is contrary to how competition works. If the FTC If we win, we would have to end many of the practices Amazon uses to offer and promote low prices, and the results would be anti-competitive and anti-consumer.” I am issuing a statement .
In addition, the FTC claims in its complaint that in addition to Project Nessie, Amazon has taken various anticompetitive methods to dominate the market.
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