ROBBER BARONS

Amazon Used a Secret Algorithm to Increase Prices: Report

The algorithm, code-named “Project Nessie,” tested how high the e-commerce company could increase its prices before rivals stopped raising their own.

Amazon covertly used an algorithm to test how high it could increase its prices before rivals stopped raising their own, according to the Federal Trade Commission’s monopoly lawsuit against the e-commerce giant. The existence of the algorithm, named “Project Nessie,” was uncovered earlier this week in previously redacted portions of the FTC’s lawsuit seen by the Wall Street Journal. An FTC spokesperson told the Journal that they hoped Amazon would “allow the American public to see the full scope of what we allege are their illegal monopolistic practices.” FTC Chair Lina Khan claimed that Amazon has “enrich[ed] itself while raising prices and degrading service” by engaging in tactics to discourage sellers from listing products at lower prices on other e-commerce platforms. Amazon, for its part, said “the FTC’s allegations grossly mischaracterize this tool,” and claimed that it never worked as intended and was scrapped several years ago.