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Investing.com -- Shares of Pinduoduo (NASDAQ: NASDAQ:PDD) fell 1.3% as the company faced questions from the U.S. Federal Trade Commission (FTC) regarding Amazon (NASDAQ:AMZN)’s pricing policies. The FTC’s inquiry into Temu, Pinduoduo’s online marketplace, came to light following reports by The Information, citing sources familiar with the matter.
Temu, which is known for offering heavily discounted goods shipped directly from China, has been under the FTC’s radar after allegations surfaced that Amazon penalized merchants for listing products at lower prices on the platform. The FTC’s engagement with Temu representatives reportedly took place prior to January 20, before the transition of FTC Chair from Lina Khan to Andrew Ferguson.
The FTC’s interest in Temu is part of a broader antitrust lawsuit against Amazon, which alleges that the e-commerce giant’s pricing policies lead to higher prices for consumers on the internet. The trial for this lawsuit is scheduled for 2024. An Amazon spokesperson has stated that merchants are responsible for setting their own prices and that Amazon encourages them to sell on multiple platforms.
The communications between the FTC and Temu, which included a letter and phone discussions, highlight the increased scrutiny of international e-commerce operations and their impact on U.S. markets. Pinduoduo’s stock movement reflects investor concerns over the potential implications of this regulatory attention.
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