"Amazon's Secret Algorithm Boosted Profits by $1 Billion, FTC Reveals"
The U.S. Federal Trade Commission (FTC) has accused Amazon of using illegal strategies, including a secret algorithm called "Project Nessie," to increase prices and boost profits by over $1 billion. The algorithm identified products for which Amazon predicted other online stores would follow its price increases. After outside retailers matched or raised their prices, Amazon continued to sell the products at inflated prices, resulting in excess profit. Amazon spokesperson Tim Doyle denied the allegations, stating that the FTC mischaracterized the pricing tool and that the company stopped using it years ago. The FTC also accused Amazon of seeking to hide information from antitrust enforcers and of targeting sellers and competitors like Walmart.
