A federal court in Seattle has partially granted a motion to dismiss a lawsuit filed by the U.S. Federal Trade Commission (FTC) against Amazon, allowing some claims to proceed.

The FTC's lawsuit alleges that Amazon engages in anti-competitive practices to dominate online marketplaces, including penalizing vendors who offer lower prices on rival platforms.

The complaint, initiated in September 2023, accuses Amazon of using its monopoly power to engage in unfair practices, including forcing sellers to utilize its fulfillment services.

Central to the FTC's allegations is the hidden pricing algorithm known as 'Project Nessie,' which allegedly manipulated prices to gauge competitors' reactions.

This lawsuit is part of a broader investigation into Amazon by the FTC, which has also accused the company of misleading customers regarding Prime subscriptions.

The partial dismissal reflects a growing trend of regulatory scrutiny against Big Tech firms, including similar actions against Meta, Google, and Nvidia.

U.S. District Judge John H. Chun ruled that the case will be tried in two stages, rejecting Amazon's request to consolidate evidence and remedies into a single trial.

Despite the partial dismissal, the FTC is still permitted to pursue claims that were not permanently dismissed by the judge.

Following the ruling, Amazon expressed cautious optimism, having previously sought a complete dismissal of the case.

Amazon and the FTC have until mid-October to file a joint statement regarding potential redactions to the sealed ruling.

Neither Amazon nor the FTC has publicly commented on the recent ruling at this time.

A significant point of contention in the case is the FTC’s interpretation of 'Project Nessie,' which they argue was designed to raise prices.