Amazon.com Inc (NASDAQ: AMZN) is under scrutiny following revelations about a secret algorithm, code-named "Project Nessie," that the e-commerce giant allegedly used to manipulate prices.
The Federal Trade Commission (FTC) has included these allegations in its monopoly lawsuit against Amazon, claiming that the algorithm aimed to test the elasticity of price increases and observe if competitors would follow suit.
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The algorithm no longer in use was reportedly instrumental in enhancing Amazon's profits across various product categories.
It was so effective that it boosted Amazon's margins and led competitors to inflate their prices, the Wall Street Journal